IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-7p5243-5255.html

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

Author

Listed:
  • Williams J.U.

    (National Open University of Nigeria)

  • Tesunbi S. O

    (National Open University of Nigeria)

Abstract

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.

Suggested Citation

  • Williams J.U. & Tesunbi S. O, 2025. "Strategic Financial Risk Management and Organizational Effectiveness in NEM Insurance Plc Lagos Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(7), pages 5243-5255, July.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:5243-5255
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-7/5243-5255.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/strategic-financial-risk-management-and-organizational-effectiveness-in-nem-insurance-plc-lagos-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert E. Hoyt & Andre P. Liebenberg, 2011. "The Value of Enterprise Risk Management," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(4), pages 795-822, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gundula Glowka & Andreas Kallmünzer & Anita Zehrer, 2021. "Enterprise risk management in small and medium family enterprises: the role of family involvement and CEO tenure," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1213-1231, September.
    2. Kingsley Alawattegama, 2017. "The Impact of Enterprise Risk Management on Firm Performance: Evidence from Sri Lankan Banking and Finance Industry," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(1), pages 225-225, December.
    3. Al-Amri, Khalid & Davydov, Yevgeniy, 2016. "Testing the effectiveness of ERM: Evidence from operational losses," Journal of Economics and Business, Elsevier, vol. 87(C), pages 70-82.
    4. Nguyen, Minh Hong & Trinh, Vu Quang, 2023. "U.K. economic policy uncertainty and innovation activities: A firm-level analysis," Journal of Economics and Business, Elsevier, vol. 123(C).
    5. Li, Yongjian & Zhen, Xueping & Qi, Xiangtong & Cai, Gangshu (George), 2016. "Penalty and financial assistance in a supply chain with supply disruption," Omega, Elsevier, vol. 61(C), pages 167-181.
    6. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    7. Nadine Gatzert & Philipp Reichel, 2022. "Awareness of climate risks and opportunities: empirical evidence on determinants and value from the U.S. and European insurance industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(1), pages 5-26, January.
    8. Elisabetta Mafrolla & Felice Matozza, 2014. "Risk management and firm size: a survey of Italian private companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(3), pages 87-108.
    9. Julia Eichholz & Nicole Hoffmann & Anja Schwering, 2024. "The role of risk management orientation and the planning function of budgeting in enhancing organizational resilience and its effect on competitive advantages during times of crises," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 35(1), pages 17-58, March.
    10. Dionne, Georges & El Hraiki, Rayane & Mnasri, Mohamed, 2023. "Determinants and real effects of joint hedging: An empirical analysis of US oil and gas producers," Energy Economics, Elsevier, vol. 124(C).
    11. Huang, Shirley Hsueh-Li & Hu, Guo-Hsin & Hsu, Ming-Fu, 2025. "Identifying contextual content-based risk drivers for advanced risk management strategies," Research in International Business and Finance, Elsevier, vol. 73(PB).
    12. Dupire, Marion & Slagmulder, Regine, 2019. "Risk governance of financial institutions: The effect of ownership structure and board independence," Finance Research Letters, Elsevier, vol. 28(C), pages 227-237.
    13. Stanley Chege & Gregory Wanyembi & Constantine Nyamboga, 2023. "Enterprise Risk Management Practices in Kenya," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 8(1), pages 15-26, April.
    14. Yongrok Choi & Xiaoxia Ye & Lu Zhao & Amanda Luo, 2016. "Optimizing enterprise risk management: a literature review and critical analysis of the work of Wu and Olson," Annals of Operations Research, Springer, vol. 237(1), pages 281-300, February.
    15. Songling Yang & Muhammad Ishtiaq & Muhammad Anwar, 2018. "Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy," JRFM, MDPI, vol. 11(3), pages 1-17, June.
    16. Andrew F. Whitman, 2015. "Is ERM Legally Required? Yes for Financial and Governmental Institutions, No for Private Enterprises," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 18(2), pages 161-197, September.
    17. Goksel KORKMAZ, 2020. "The Moderating Effect of Internal Audit in Strategic Planning Implementation Success," Istanbul Management Journal, Istanbul University Business School, vol. 0(88), pages 57-84, June.
    18. Malik, Muhammad Farhan & Zaman, Mahbub & Buckby, Sherrena, 2020. "Enterprise risk management and firm performance: Role of the risk committee," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(1).
    19. Sulaiman Ademola Oreshile & Nurul Shahnaz Mahdzan & Rozaimah Zainudin, 2025. "Enterprise risk management quality and firm value: Evidence from corporate reputation risk theory," Risk Management, Palgrave Macmillan, vol. 27(1), pages 1-31, February.
    20. Jeffrey Yi-Lin Forrest & Jun Liu & Huan Guo & Yong Liu & Theresa M. Phipps & Yuanjun Yang & Yaru Cao, 2022. "Market Competition and Economic Effects of Government Policies," International Journal of Knowledge and Systems Science (IJKSS), IGI Global Scientific Publishing, vol. 13(1), pages 1-23, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-7:p:5243-5255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.