The Nigeria Deposit Insurance Corporation (NDIC) has inaugurated an Enterprise Risk Management (ERM) Committee to provide effective on-sight and direction for the implementation of the Corporation’s ERM Framework and Guidelines.

The NDIC’s Acting Managing Director/Chief Executive, Umaru Ibrahim mni, said Members of the Committee, designated as “Risk Champions”, were drawn from departments and units of the Corporation and they would be expected to drive the implementation of the Framework and Guidelines.

Ibrahim, pointed out that the recent global financial crisis and the crisis in the Nigerian banking system, which were mainly caused by weak corporate governance and poor risk management practices, had necessitated the need for organizations to establish appropriate frameworks to manage their risk exposures.  It is for this reason, he said, that the NDIC established an Enterprise Risk Management Unit (ERMU) to continuously identify, assess, manage, monitor and control the significant risks that could impede the achievement of the Corporation’s mandate.  The unit, according to him, would also promote risk understanding among staff of the Corporation and optimize the use of funds and other resources for operational activities.

The Acting Managing Director/Chief Executive also disclosed that an Enterprise Risk Management (ERM) policy manual had been developed to guide the implementation of the ERM Framework and Guidelines.

The Enterprise Risk Management Unit (ERMU) had identified significant risks facing the Corporation and how they could manifest.  However, several mitigating programmes had been put in place to address the risks identified in the Corporation.  In addition, prior to the introduction of the ERM Framework, the Corporation had since 2008 shifted from the flat rate of collecting premium to Differential Premium Assessment System (DPAS) to assess premium payable by banks on their (the banks’) individual risk profiles.  This migration is also intended to further encourage prudent risk management among the banks and minimize the premium they pay to the Corporation.

H.  S.  BIRCHI

HEAD, COMMUNICATION & PUBLIC AFFAIRS