Foreign Exchange (FX) Risk remains the top most risk exposure for organisations in 2018 despite exiting its worst recession in 2017 amidst monetary and fiscal measures put in place to stabilise the economy.
The Nigerian economy is still faced with the uncertainty arising from the post-recession era and financial crisis, the latest risks survey report by KPMG shows.
The Top 10 Business Risks for 2018/19, a Risk Management survey conducted by the Risk Consulting practice of KPMG Nigeria, which was launched in Lagos on Tuesday, was based on aggregated perspectives of 94 business executive directors and senior management staff, aimed at identifying the key risks that executives believe will impact their organisations.
Presenting the survey report, Olumide Olayinka, Partner and Head of Risk Consulting, KPMG Nigeria, said the study took an in-depth look into the risk landscape and that the scope of the survey was increased to cover the financial services sector, to deepen the analysis and the overall quality of the report.
“Macroeconomic risk assessed in 2016 was split into its individual components to afford respondents the opportunity to evaluate its elements, such as foreign exchange, fiscal and monetary policy, crude oil price and interest rate, amongst others,”
Tomi Adepoju, Partner, Risk Consulting, KPMG Nigeria, said risk assessed had an aggregate score of 3.12, which depicts a ‘medium risk’ environment for Nigeria Businesses in 2018 based on KPMG rating methodology. According to Adepoju, it is an upward shift in the respondents’ aggregate risk score from 2.77 in 2016 to 3.12 in 2018.
