Audit firm KPMG Nigeria said forex and crude oil price fluctuations contribute to the top ten risks for Nigerian businesses this year.
Partner and Head of Risk Consulting, KPMG Nigeria, Mr Olumide Olayinka said the Top 10 Business Risks in 2018 Report in Lagos survey was conducted between December 2017 and February 2018. The Report spells out the findings of a risk management survey carried out to identify key risk indicators that will affect organisations in 2018-19.
KPMG Nigeria Partner in Risk Consulting Tomi Adepoju said: “31 risks were assessed, five of which were rated high, 23 medium and three low. The risk assessment had an aggregate score of 3.12, which depicts a ‘medium risk’ environment for Nigerian businesses in 2018 based on our rating methodology. This was an upward shift in the respondents’ aggregate risk score from 2.77 in 2016 to 3.12 in 2018.
“Foreign exchange risk is the number one risk for organisations in 2018, arising from the magnitude of the exchange rate in the foreign exchange market. Other top 10 risks in order of their severity include: fiscal and monetary uncertainties, regulatory risk, crude oil price risk, brand and reputational loss risk, customer dissatisfaction risk, political risk, liquidity risk, insecurity and interest rate risk.”