Strategic Financial Risk Management and Organizational Effectiveness in NEM Insurance Plc Lagos Nigeria

This study explores how strategic financial risk management influences organizational effectiveness in NEM Insurance Plc, Lagos, Nigeria. Focusing on five core components risk identification, risk assessment and analysis, risk control and mitigation, risk monitoring and reporting, and integration into corporate strategy; the research assesses their collective impact on key indicators of organizational effectiveness, including operational efficiency, financial performance (profitability and return on assets), adaptability and resilience, customer satisfaction, market share, and regulatory compliance. Adopting a quantitative descriptive survey design, the study collected data from 150 employees across three Lagos offices using structured questionnaires. The data were analyzed using SPSS Version 25, applying descriptive statistics, correlation matrix, and multiple regression techniques to examine the relationships between strategic financial risk management and organizational outcomes. The results reveal that all five components of financial risk management significantly and positively affect organizational effectiveness. Among them, risk assessment and analysis emerged as the most influential factor, while risk monitoring and reporting, though significant, had the least impact suggesting a potential area for improvement. The regression model accounted for 67% of the variance in organizational effectiveness, underscoring the strength of strategic financial risk management in shaping performance outcomes. The study emphasizes the need to enhance continuous risk monitoring, align risk practices with strategic objectives, and build organizational capacity through staff training and technology adoption. These findings contribute to the limited empirical literature on financial risk management in Nigeria’s insurance sector and provide actionable insights for insurers, regulators, and policymakers aiming to foster resilience, efficiency, and competitiveness in a dynamic business environment.