Sovereign Trust Insurance embraces enterprise management framework

　

Sovereign Trust Insurance embraces enterprise risk management framework

Chuks Udo Okonta

Sovereign Trust Insurance Plc siad it has embraced enterprise risk management framework to drives its operations.
Its spokesperson Segun Bankole, in a statement said the move became necessary as a panacea to ensuring that operations of the organisation are carried out on sound business principles with a view to protecting shareholders and other stakeholders’ interest from time to time. He said, "In view of the ever-evolving nature of the macro-economic and regulatory dynamics of the industry’s operating environment, the need for regular and periodic evaluation of the effectiveness of the company’s Enterprise Risk Management process and internal controls cannot be overemphasized, hence, the adoption of the framework"
While commenting, the Head of Risk Management and Control of Sovereign Trust Insurance Plc, Mr. Sanni Oladimeji said it has become very imperative in modern-day business clime to apply sound Risks Management Principles in ensuring that organizations are properly safeguarded against unforeseen risks that might arise in the course of business transactions on a daily basis. He further explained that the company’s Management is religiously committed to the execution of the framework in the years ahead especially with the adoption of the new business model which has successfully taken off. In his words, "risks responses that were once successful at some point may become inappropriate at another time just as control activities may become outdated and inadequate as a result of the dynamics of the business environment; For this reason, there must be constant review of operating processes and controls".

He noted that the creation of the Risk Management and Control Department in the organization has given a common voice to all members of staff in terms of identifying risk elements and providing swift response in nipping such when they arise. He said every employee in the company has undergone some level of training and orientation towards making them Risk Champions; in essence, they can identify, assess, measure and provide mitigating report on any risk identified across the company.
He pointed out that the overriding objective of the Enterprise Risk Management Framework as set up by the organization is to ensure that the business of the company is conducted in accordance with applicable statutory, regulatory and supervisory requirements as well as promote adherence to the company’s code of ethics and good business conduct.
In the same vein, the Managing Director/CEO, Mr. Wale Onaolapo said the ERM framework is also designed to assist the Board and Management to align the company’s risk appetite to its business strategy, enhance risk response decisions, reduce operational surprises and losses, identify and manage interdepartmental risks, allow for more informed risk decisions and improve capital management.
Onaolapo informed that the Nigerian regulatory environment has evolved with regulators constantly seeking assurance as to the robustness of the risk management capacity and the financial viability of financial institutions in a stressed environment. Conclusively, he said part of the company’s policy is to maintain a strong capital base in supporting the development and growth of its business and to also be able to meet regulatory capital requirements at all times through its corporate governance, processes and procedures.
The company maintains a high level of discipline over its investment decision and where it allocates its capital, seeking to ensure that shareholders’ investments yield good returns year-on-year.