Enterprise Risk Management (ERM) Practices and Financial Performance: Evidence from Listed Insurance Firms in Nigeria

Jamilu Abdulkadir
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Jamilu Abdulkadir: Department of Business Administration Faculty of Management Sciences, Kaduna State University, Nigeria

Yildiz Social Science Review, 2024, vol. 10, issue 2, 99-109

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 regres-sion model to estimate the relationship. The findings revealed the existence of a positive signif-icant 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 restrategize 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; NigeriaJournal: Yildiz Social Science Review (search for similar items in EconPapers)
JEL-codes: F00 F30 G00 G10 K00 K20 M00 M20 O10 (search for similar items in EconPapers)
Date: 2024
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