Risk Management Services in Nigeria

At Qeeva, We help our clients with Risk management. We guide sessions to identify risk, quantify risk, and proactively manage risks. We help them to manage credit risk, market and counterparty risk, liquidity risk, operational risks, people risk, and business risks. We guide them with compliance with regulations, risk analytics, and risk governance.

Why?

In every business or financial decision we make, there is one major question that keeps us wary and a bit cautious. And that is, “I hope this is the right decision”.

What is Risk Management?

Risk management is a comprehensive approach to safeguarding an organization’s capital and earnings by identifying, assessing, and controlling a spectrum of potential threats. These risks can originate from diverse sources, spanning financial volatility, legal obligations, strategic missteps, unexpected events, and natural disasters. This process entails recognizing, analyzing, and either accepting or mitigating uncertainty in investment decisions, making it a pivotal aspect of monitoring and addressing financial risks inherent in investments.

An effective risk management program enables an organization to comprehensively assess the spectrum of risks it encounters. It also evaluates the interplay between various categories of business risks and their potential repercussions on the organization’s strategic objectives

What Qeeva Can Do for You: Our Risk Management Services

Qeeva Advisory’s Risk Management Services assist organizations in effectively managing their risks across various domains. Our comprehensive offerings encompass areas such as cybersecurity, fraud prevention and mitigation, regulatory compliance, third-party risk management, software security, and internal audit support.

Our dedicated teams deliver services designed to enhance risk monitoring, streamline compliance efforts, and expedite remediation processes. By merging our technical expertise with cutting-edge technology, we offer a holistic risk management solution tailored to your specific needs, all while optimizing costs.

Our risk management services encompass a wide array of functions:
– Managing Economic Capital
– Overseeing Trade Risks
– Managing Risks
– Handling Collateral
– Analyzing Data on Loss Events
– Addressing Market and Liquidity Risks
– Assessing Insurance Risks
– Developing Contingency Funding Plans
– Planning Risk Management
– Formulating Risk Policies and Protocols
– Advising on Asset Management
– Supervising Residual Risk
– Upholding Risk Governance and Oversight
– Executing Risk Management in Transactions
– Accounting for Financial Instruments
– Monitoring and Managing Projects
– Ensuring Capital Adequacy and Regulatory Compliance
– Managing Commodity and Energy Risks
– Conducting Quantitative and Qualitative Risk Analyses
– Measuring and Managing Credit Risks
– Supporting Risk Identification and Assessment
– Conducting Product and Cargo Quality and Quantity Surveys
– Providing Actuarial Services and Financial Statement Support
– Managing Operational Risks
– Transforming Finance and Treasury Management
– Quantifying and Managing Portfolio Risks
– Conducting Research, Surveys, Market Studies, Feasibility Studies, and Due Diligence Assessments.

What are Examples of Risk Management?

– A bank performs a credit check on an individual before issuing a personal line of credit in Nigeria. In Nigeria, banks conduct thorough credit assessments on individuals before extending personal lines of credit, such as personal loans or credit cards. This evaluation helps ensure responsible lending practices and assesses the borrower’s creditworthiness.

– A stockbroker uses financial instruments like Nigerian Stock Exchange (NSE) derivatives or other relatively safer stockbrokers. Nigerian stockbrokers employ financial instruments traded on the Nigerian Stock Exchange (NSE), such as NSE derivatives like stock futures and options, to facilitate investment strategies for their clients in the Nigerian equities market.

– A money manager uses strategies like portfolio diversification, asset allocation, and position sizing to mitigate or effectively manage risk in the Nigerian stock market. A money manager operating in the Nigerian stock market employs risk management techniques like diversifying investments across various Nigerian stocks, allocating assets strategically, and determining appropriate position sizes to minimize risks and maximize returns for their clients.

Why is Risk Management Services so Important?

The aim of effective risk management has never been for businesses to avoid taking risks rather, it is for them to know the best and most beneficial risk that should be taken to help them reach their goals.

Navigating Complexity: Risk management is essential in addressing the growing complexity of modern risks driven by globalization, digital technology, and climate change.

Urgent Response: Risk management is critical for responding effectively to external threats like the COVID-19 pandemic, ensuring employee well-being, business continuity, customer relations, and brand protection.

Adapting to New Challenges: Ongoing challenges, including decisions on employee return policies, supply chain resilience, inflation, and global events like civil wars or unrest, require risk management to facilitate adaptability.

Proactive Advantage: Transitioning from reactive to proactive risk management empowers organizations to anticipate and mitigate risks, offering a competitive edge in today’s dynamic business landscape.

Sustainability and Resilience: Risk management plays a pivotal role in supporting business sustainability, enhancing resilience, and fostering agility, ensuring long-term viability.

Leveraging Technology: The integration of AI technologies and advanced Governance, Risk, and Compliance (GRC) platforms enhances risk management capabilities, enabling more effective risk assessment and response.

Categories of Risk

Compliance and Regulatory Risk: The risk associated with failing to adhere to regulations potentially leads to legal or financial consequences.

Financial Risk: The risk is linked to financial market fluctuations or financial instrument valuation changes that may impact an organization’s financial health.

Reputation Risk: The risk of damage to an organization’s reputation due to negative public perception can affect its credibility and relationships with stakeholders.

Operational Risk: The risk arising from internal processes, people, systems, or external events that may disrupt normal business operations.

Economic Risk: The risk is related to adverse changes in economic conditions, affecting an organization’s financial stability, growth, or profitability.

Security and Fraud Risk: The risk of unauthorized access, data breaches, or fraudulent activities that can harm an organization’s security, assets, or operations.

Strategic Risk:
The risk originates from decisions related to an organization’s objectives, goals, and strategic direction, potentially impacting its long-term success.

Financial vs. Non-Financial Risk

Risk is an inherent part of business operations, and organizations face various types of risks that can impact their stability and success. Two broad categories of risk that businesses encounter are financial risk and non-financial risk. Understanding the distinction between these two forms of risk is crucial for effective risk management and strategic decision-making.

Financial Risk:

Financial risk, often referred to as market risk, is primarily associated with the financial aspects of an organization’s operations. It encompasses the potential for financial losses due to fluctuations in financial markets, interest rates, exchange rates, and asset values. Key elements of financial risk include:

Market Risk: This includes exposure to changes in equity prices, interest rates, and commodity prices. For example, a company with investments in stocks may face market risk if stock prices decline.

Credit Risk: Credit risk pertains to the possibility of financial losses resulting from a counterparty’s failure to fulfil its financial obligations. Lenders, for instance, are exposed to credit risk when borrowers default on loans.

Liquidity Risk: Liquidity risk arises when an organization encounters difficulties in accessing cash or selling assets quickly to meet its financial obligations. It can result from poor cash management or unexpected financial crises.

Currency Risk: Organizations engaged in international trade or investment may face currency risk, which is associated with fluctuations in exchange rates. This can affect the value of foreign assets, liabilities, and revenues.

Non-Financial Risk:

Non-financial risk, also known as operational risk, encompasses a broader range of risks beyond financial markets and monetary considerations. These risks are related to the day-to-day operations, processes, and external factors that can disrupt business activities and impact an organization’s reputation. Key elements of non-financial risk include:

Operational Risk: Operational risk relates to disruptions caused by internal factors such as human error, system failures, process inefficiencies, and fraud. It includes risks associated with the organization’s processes, people, and technology.

Reputation Risk: Reputation risk arises from negative public perception, which can damage an organization’s brand, customer trust, and relationships with stakeholders. It often results from adverse events, ethical lapses, or failures in delivering on promises.

Regulatory and Compliance Risk: This risk is associated with violations of laws and regulations governing the industry or region in which an organization operates. Non-compliance can lead to legal actions, fines, and reputational damage.

Environmental and Social Risk: Organizations face environmental and social risks related to sustainability, climate change, ethical concerns, and community relations. These risks can impact an organization’s social license to operate and public image.

Effective risk management strategies require organizations to identify, assess, and mitigate both financial and non-financial risks to safeguard their stability and long-term success.

Risk Management Processes

In today’s dynamic business landscape, it’s essential for organizations to secure proper insurance coverage to minimize potential income loss in the event of business interruptions. Quantifying business interruption exposure accurately can be challenging, leading to miscalculations and inappropriate declared values, which can have adverse financial consequences. Factors such as changes in business structure, acquisitions, mergers, and evolving industry trends can further complicate risk assessment.

At Qeeva Advisory, we specialize in identifying and managing business interruption risks. Our dedicated teams work closely with clients to design tailored business interruption programs that include precise declared insurance values and limits for all insurable risks, ensuring adequate insurance coverage.

Claims Management and Advocacy

Effective claims management is a critical component of any robust risk financing strategy. Poorly administered claims can significantly impact an organization’s financial health, cash flow, and reputation. In the event of a claim, having the right support structure and qualified advocates is essential.

Qeeva Advisory can serve as your claim preparer and loss mitigation advisor. We streamline the process by assembling all necessary documentation, performing financial calculations to support the insurance claim, offering policy guidance, and negotiating with insurers. Our expertise ensures expert interpretation and application of insurance policies, maximizing indemnity and expediting claims to maintain cash flow.

Loss Modeling and Risk Profiling

Our services extend to loss modelling and risk profiling:

Loss Modeling: We determine material damage loss, aiding in setting insurance limits. This includes financial modelling to quantify risk tolerance, fire loss modelling for fire-related events, high-level earthquake assessment, and natural hazard modelling.

Risk Profiling: Our solutions encompass business continuity planning, enterprise risk management software and consulting, insurable risk profiling, and strategic risk assessment to identify and address critical risk exposures.

Risk Tolerance Analysis

Qeeva Advisory conducts comprehensive financial analyses to calculate risk tolerance for unforeseen losses in a financial year. This analysis comprises two key elements:

Risk Bearing Capacity Analysis: Applying benchmark ratios to key financial metrics, offering high-level guidelines based on a company’s relative size and financial strength.

Quantitative Tolerance Analysis: Using recent annual accounts to determine the impact of adverse loss scenarios on financial ratios, and identifying material levels of stress.
Count on Qeeva Advisory to enhance your organization’s risk management and resilience strategies.

How to Implement an Effective Risk Management Plan

An effective risk management plan outlines an organization’s strategy for effectively handling risk. It encompasses the following critical aspects:

Risk Approach: The first of implementation is to define the risk approach of the plan. This helps the plan become more focused increasing effectiveness to risk management.

Roles and Responsibilities: When it’s everybody’s work, then it is no one’s work. With this, you can clearly delineate the roles and responsibilities of individuals or teams involved in risk management.

Resource Allocation: An effective plan outlines the allocation of resources dedicated to the risk management process.

Internal Policies and Procedures: A thorough risk management plan must include internal policies and procedures that guide risk management activities.

After the above components have been considered, the process of implementation follows smoothly.
Communication and Consultation: Effective risk management involves raising risk awareness throughout the organization. To achieve this, your risk leaders will need to develop a communication plan to convey risk policies and procedures to employees and relevant stakeholders.

Scope and Context Establishment: This step involves defining your organization’s risk appetite and risk tolerance, considering factors such as business objectives, company culture, regulatory requirements, and the broader context in which it operates.

Risk Identification: With a grasp of the plan, potential risk scenarios are identified. These are those that could positively or negatively impact your organization’s operations, maintaining an up-to-date risk register.

Risk Analysis: Risks are analyzed in terms of their likelihood and impact, often visualized using tools like a risk heat map or risk assessment matrix. Quantitative analysis may also be employed, especially for cyber-risk quantification.

Risk Evaluation: Organizations assess risks and determine how to respond, including risk avoidance, mitigation, sharing or transfer, and acceptance, based on their alignment with the organization’s risk appetite and tolerance.

Risk Treatment: This stage involves implementing agreed-upon controls and processes to manage identified risks, ensuring their effectiveness.

Monitoring and Review: Ongoing monitoring activities assess the performance of controls and look for key risk indicators that may necessitate a change in strategy, allowing for continuous improvement in risk management practices.

Why Work with Us?

• Our processes are trustworthy and a total transparency in our workflow.
• As a team, we intentionally give it our all at providing top-quality services to all our clients and care to meet their diverse needs with tailored solutions.
• We wholeheartedly welcome innovation and creative approaches to address intricate and demanding issues.

FAQs

What are the Key Regulatory Requirements for Effective Risk Management in Nigeria?

• Nigerian businesses often seek clarity on the specific regulations and compliance standards related to risk management. Understanding the legal framework is crucial to ensure that risk management practices align with local laws and regulatory authorities’ expectations.

How Can Businesses in Nigeria Enhance Cybersecurity as Part of Risk Management?

• With the increasing prevalence of cyber threats, businesses in Nigeria are eager to know practical steps to bolster their cybersecurity measures as part of effective risk management. This may include guidance on data protection, threat mitigation, and compliance with cybersecurity regulations

What are Some Skills You Need to Become an Effective Risk Manager?

• Risk Analysis
• Adaptable and Dynamic Mindset.
• Transparency
• In-depth knowledge of business and finance.
• Strategic Thinking
• Strong Communication Skills.

Reach Out to Us via call at +234 8023200801, 08075765799 or email: info@qeeva.com or fill out our contact form