As businesses continue to struggle with the dwindling economy in Nigeria, some risk managers have highlighted some top ten risks likely to face businesses in the country for 2017.
According to a report gathered from 80 Risk Managers in Nigeria by Allianz Global Corporate and Specialty, a top most insurance company in the world, these ten factors are most likely to be threats to businesses for the year.
The top ten risks include;
1. Macro-Economic Development: Major change in prices of commodities pose more threat to businesses in the last 12 months and it has been tipped to pose more as the economy finds sustainability. Also, the rate of inflation and austerity programmes are named as threats to businesses.
2. Market Development: the report listed market volatility, competitions and fluctuations as focal point of risk for businesses. Market developments records a 60% risk on business for the year 2017.
3. Changes In Government: It was noted that changes in government agencies usually affect businesses as it witnesses new economic sanctions among other changes.
4. Theft, Fraud and Corruption sits on the 3rd position of risks liable to businesses in Nigeria for 2017. The report stated that it was good that the government of the day in Nigeria picks anti-corruption as it’s main target to deal with. However it still takes 27% of risks associated with firms.
5. Cyber Incidents: with the presence of the Internet, theft of stored information in the database of a firm pose a major risk to businesses. The incidents include; cyber crime, IT failure, data breaches etc. It records 26% on the chart.
6. Political Violence: study have shown how politics can be quick to cause violence and hence risky to business ventures. Political Violence poses a risk of about 23% for the year 2017.
7. Loss Of Reputation: The dwindling economy that have been persisting for months have made some organisations suffer setbacks which have caused them to loose their reputation to trusted clients.
8. Business Interruption: Disruption of supply chain and vulnerability of the business is another risk to be watchful for. Though it sits on number 8 of top risks for businesses in Nigeria for 2017, it is a major risk for businesses in the world.
9. Human Error: Errors committed by employees as they carry out their duties are also major risk for businesses. The report stated that the world over still deals with human errors as far as business risks was in discuss. It poses just about 11% risk to businesses.
10. New Technology: New innovations such as 3D printing and usage of drones poses 8% risks to businesses in Nigeria for 2017. While the current technology becomes obsolete, newly invented technologies may take central stage of a business.