Some chief executive officers (CEOs) have stressed the need for firms to adopt digital tools in measuring and monitoring risks in their organisations.
They gave the advice recently, during the third edition of the third session of the Rand Merchant Bank Nigeria Economic and Business webinar, titled: "Risk Management and Diversification in a VUCA Environment."
The CEO, FMDQ Group, Mr. Bola Onadele, emphasised the need for the adoption of technology via the adoption of digital tools to measure and monitor risk, complemented by competent risk management teams tasked with managing and reporting the risks.
He advised that corporates and institutions putting together a risk strategy should always start at a macro level and then drill downwards using the investors' philosophy, corporate architecture, leadership framework and business strategy as the guiding principles.
On his part, the CEO, RMB Nigeria and West Africa, Mr. Michael Larbie, said: "We believe Nigerian businesses can become resilient and sustainable by adopting strategies to adapt to and manage risk."
The session focused on how Nigerian businesses can respond, proactively prepare for and thrive in a volatile, uncertainty, complexity and ambiguity (VUCA) environment.
In her contribution, the CEO, Emerging Africa Capital Group, Toyin Sanni, listed some attractive alternative investments such as commercial and corporate bonds by investment grade issuers, as well as sub national bonds as options for investors.
According to her, to propel economic growth in the country, medium to long-term solutions are needed, which include reducing the dependence on foreign products and the dependence on oil.
"The markets are vulnerable to volatility in the oil prices because of their dependency on proceeds of crude sales, which has reinforced the need to strengthen alternative sectors such as agriculture, solid minerals and value-added exports. Nigerian also needs to engage with the diaspora, encouraging and supporting diaspora flow," she said.
The session was moderated by the Founder of Graeme Blaque Advisory, Zeal Akaraiwe, who highlighted steps investors could take to mitigate a VUCA environment.
He emphasised that systemic risks, though unavoidable, could be managed through measurement and mitigation.