Nigerian lender, Polaris Bank, over the weekend trained its service providers and vendors on ways to manage risk whilst improving on their business operation and expanding to explore market opportunities.
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The bank at the training which held in Lagos focused on “Risk Management in business”, suggesting how its partners can improve the efficiency of their operations in line with best practices for a mutually sustainable growth. Polaris Bank said Environmental & Social Risks and other potential impacts associated with engaging third parties informed the session.
“As an organization driven by principles of sustainability, Polaris Bank has a responsibility to ensure that as we meet our own needs; we do not compromise the ability of future generations to meet their own needs,” said Bola Adesanoye, Head, Sustainability of Polaris Bank.
Adesanoye situated the conference within the framework of the Nigerian Sustainable Banking Principles
(NSBP) as spelt out by the regulatory Central Bank of Nigeria (CBN) to which Polaris is a signatory.
The NSBP in one of its nine principles talked about Environmental and Social Footprints of businesses in the community where aligned businesses have a presence.
According to Akeem Adekoya, the Bank’s Head, Operational Risk, vendors risk management (VRM) as a process, deals with the management and planning of third-party products and services, ensures that the use of third-party products, IT suppliers and service providers does not result in a potential business disruption or any negative impact on business performance.
“If left unmanaged, these risks can lead to a decline in the financial institution’s reputational image, costly litigation, or loss of revenue,” he said.
To mitigate against potential risks, Adekoya advised Vendors to always seek “Permit to work”; a process by which organisations “ensure that permit to work system is implemented for all high-risk activities such as; work at height, hot works, working on electricity and confined space etc.”
