Risk Management, Corporate Governance and Performance of Insurance Companies in Nigeria

Authors

  • Kehinde Isiaq Olaiya
  • Olusola Enitan Olowofela
  • Emmanuel Olufemi Adebayo
  • Mayowa Ebenezer Ariyibi

Abstract

The purpose of this paper is to examine the impact of risk management on organizational performance of insurance companies in Nigeria. The study considers multi-sampling techniques since the population of insurance companies in Nigeria is fifty-nine (59) and all the population could not be covered, so Sixty percent of the population was covered which amount to thirty-six (36) insurance companies. The study revealed that risk management, strategic decisions and corporate governance indicate a significant relationship with organizational performance by showing a positive relationship. Effective management of risks by insurers will increase the performance and profitability of insurance companies in Nigeria. Risk management is a crucial issue, not only for the survival and profitability of the insurance industry, but also for the economic growth and development of the whole economy. As major risk underwriters, insurance companies need to adopt good and quality measures in the management of operational risk. This is important, more so, as the industry prepares to recapitalized their capital base and reform the sector. Research into impact of risk management on the organizational performance of insurance companies from Nigerian perspective is rare. This study is therefore timely and its findings are invaluable for the efficient management of operational risk in the insurance industry.

Published

2022-11-01

Issue

Section

Articles