By Bankole Orimisan
The National Insurance Commission (NAICOM) has stressed the need for businesses and government, at all levels, to prioritise risk management framework. The commission also outlined major objectives of risk management to minimise financial losses, improvement of business resilience and the ability to seize opportunities.

Speaking at the 40th-anniversary celebration of the Risk Managers Society of Nigeria (RIMSON) in Lagos, the Commissioner for Insurance, Olusegun Omosehin, said risk management is key to economic growth.

The Commissioner warned against the consequence of a lack of a structured risk-mitigating mechanism. He identified the importance of NAICOM in fostering a robust risk management culture in Nigeria even as he underscored the need for collaboration among stakeholders in the sector.

“Risk management is one of the cornerstones of sustainable development. In today’s interconnected world, the ability of public and private institutions to identify, assess and respond to risks is central to national resilience and progress.

“In Nigeria, we have witnessed how the lack of structured risk mitigation has hampered growth, from business disruptions to the socio-economic consequences of climate-related disasters, cyber threats, and public health emergencies.

“The insurance industry, under the regulatory oversight of NAICOM, plays a pivotal role in fostering a robust risk management culture in Nigeria,” he said.
Through risk transfer mechanisms, insurance not only provides a financial safety net but also promotes stability, investment and innovation, he said.

He noted: “Our regulatory framework is focused on enhancing the capacity of insurers to underwrite risks while ensuring policyholders are protected. We are also working to expand insurance penetration, particularly among underserved communities, so that risk mitigation is inclusive and equitable.

“As we evaluate the impact of risk management on national development, we must embrace a proactive, data-driven and forward-looking approach. Risk management should not be seen as a reactive measure but also a strategic tool embedded in governance, infrastructure planning, enterprise development and public policy.”