Kari charges directors on risk management to survive struggling economy

As ACFE maps out plans to tackle fraud

To survive current economy turbulence and other challenges affecting businesses in the country, the Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NIC), Mohammed Kari has urged stakeholders in public and private sector to build up efforts against risks.

Speaking as special guest on ‘Directors’ Control-A Risk Management Culture’ at a Members Evening of the Institute of Directors (IoD) Nigeria, Kari noted that directors must be aware of their business environment and conscious of the risk they are managing.

Meanwhile, the Association of Certified Fraud Examiners (ACFE) Lagos Chapter said it has mapped plans to help the country manage risks associated with fraud to help the nation’s economy survive in the wake of high-profile fraud activities affecting the country.
Speaking during a seminar organised by the association in Lagos the President of the association, Godwin Oyedokun said government and corporate organisations must carefully designed and implement policies to control fraud activities in the country.

Kari said: “The fact that they are directors means that management is their responsibility. They must provide adequate funding for risk, whether they are doing that internally or transfer it through insurance mechanism”

According to him, the NIC organisation is launching a communication that will keep updated about insurance and increase the level of awareness in the country, particularly about the need to get insurance cover.
“We are coming out with a communication plan to educate people about insurance, because as a matter of fact lack of awareness is affecting the sector. People are not aware of the opportunity available in insurance and what insurance can do for them”, Kari noted.

Kari said that the commission, after launching its communication campaign would ensure that government agencies check and enforce insurance in every sector of the economy.

Chief Host of the event and President of IoD, Samuel Akeju said recent crash in the prince of crude oil at the internationally market, which caused budgetary ripples and threw the Nigerian economy off balance, resulting in salary adjustments and outright non-payment of salaries by various state governments necessitated the event.
“This has become issues on the front burner given the increasing threat by labour against any directors in various portfolios in either private or public sectors,” Akeju stressed.
Oyedokun said: “As part of organisation’s governance structure, a fraud risk management program should be in place, including a written policy to convey the expectations of the board of directors and senior management regarding managing fraud risk.”

According to him, effective fraud investigation which has to do with creating and gathering evidences that can stand the taste of time must be carried out by the government and corporate organisations.
He stated that preventive techniques, which would avoid potential key fraud risk events, should be established where possible to mitigate impacts on organisation.

Oyedokun disclosed that the new administration would do better in its effort to curb corruption in the public sector if it adopts effective fraud investigation approach.

He lamented that the government was not doing enough to get the country rid of financial misconduct, saying that it had what it takes to tackle the challenge.
“We are not doing enough. It is not because we do not have the required tools and resources. We do not have the right attitude to do it. We need a proactive attitude when it comes to fighting corruption,” Oyedokun stressed.

A Professor of Accounting and Quantitative Techniques and Dean of Faculty of Management Science, Babcock University, Enyi Patrick, who was also at the event stated that training of fraud examiners both at the government and private sectors would help to prevent fraud in Nigeria.

He said: “The mechanisms to put in place are many and the most important ones for organisations are strengthening of internal controls and implementing effective leadership. A leader should not compromise and should find honest and knowledgeable people to work with.”
Enyi said that government must deploy technological tools to checkmate the new trends in fraud in the country.