Effective Risk Management is the roadmap to Nigeria’s Economy Stability

Effective Risk Management is the roadmap to Nigeria Economy Stability

Nigeria economy is of mixed hybrid in nature – a middle-income, mixed economy and emerging market with expanding technology, financial, entertainment, service, communications, and manufacturing sectors. It is ranked 39th biggest economy in the world as at 2023 with GDP of 2.51%. Nigeria has a major contradictions despite the population size and as the 2nd largest economy in Africa.

Risk management is the process of identifying, evaluating and providing mitigation strategies to curtail risks. To reduce losses and withstand internal and other environmental threats to business and corporate/national existence, individuals, corporations and nations need to imbibe a risk management culture.

Risk management is one of the things that you see in various businesses especially in bank, were risk is been manage or controlled. Taking risk in banking sector requires the showcase of a special skills and judgments.

Financially risk management is an important development that arises with the restriction of Nigeria economy. It gives the chance were some irrelevant cases occur that can affect the financial foreign exchange risk and the inflow of cash steam of an organization.

In Nigeria, business organisation normally involves in trade both import and export levels that involves in exchange currencies. The present state of the currency is now fluctuating that can lead to exchange risk which can later become imperative. Therefore, the maximizing returns and minimizing risk is the main objective of risk management.

Risk is built-in in every business or organisation or in our daily activities. This depends on the type of risk which every organization is open due to business or environmental structure. Therefore, it is safe to assume that every decision maker is a risk manager. However, for a maker to give decisions whereby he can manage his business dealings, ample knowledge of risk management is critical for every decision taken. If risk management is important to private businesses, then it is also important for those managing the affairs of the economy.

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There are risk management enterprise which analysis in packaging trade. This risk encourages several ongoing inspecting projects which applied in the risk of the rated area. They inspect in the area of stimulation and risk that is somehow challenging due to the nature of consequences from incidents. Sometimes, there are some restricted apprehension on incidents that leads to threat itself.

However, the major mistake that have resulted in today’s economic situation which were made because of the lack of not interested in risk management. As a nation today we have had the good and the bad experience in business, but for the highest percentage, this is the biggest bad experience because of ignorance. Therefore, we must wake up and obtain knowledge as to grow a viable economy that believe in herself, products and people. We need to be more inform about the consequences of our decisions in the Nigeria economy.

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