ENTERPRISE RISK MANAGEMENT (ERM) PRACTICES AND FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED INSURANCE FIRMS IN NIGERIA

Year 2024, Volume: 10 Issue: 2, 99 - 109, 30.12.2024

Jamilu Abdulkadir

https://doi.org/10.51803/yssr.1461899

Abstract

This study examined the Enterprise Risk Management (ERM) Practices on the performance of insurance firms in Nigeria. The study used panel and correlational designs in investigating the effect of ERM Practices measured by strategy and operations objectives of the Committee of Sponsoring Organisation (COSO) on the financial performance of insurance firms measured by Tobin’s Q. Secondary data obtained from the annual financial statements of the insurance firms for the periods of 2018-2022 were used in the analysis. The study used panel data regression model to estimate the relationship. The findings revealed the existence of a positive significant effect of strategic objectives on the financial performance of insurance firms in Nigeria. However, a negative significant effect of operational objective on the financial performance of insurance firms in Nigeria was documented. The study recommended that insurance firms in Nigeria should continue to ensure full conformity to the provision of COSO components while carrying out their business operation. They should also re-strategize and monitor their financial performance outcomes in line with their established objectives in order to attain the holistic application of ERM strategic objectives in the overall business operations.

Keywords

Enterprise Risk Management, Insurance Firms, Financial Performance, Nigeria

Thanks

We really appreciate the opportunity to publish our work in YSSR.

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