The FRC calls for enhancements in Governance, Risk Management, and Compliance Practices
The Financial Reporting Council (FRC) has urged companies to enhance their integrated Governance, Risk, and Compliance activities in their operations.
Mr. Titus Osawe, the Director of the Governance Directorate at FRC, issued this appeal during a press briefing in Lagos. The occasion coincided with a two-day Corporate Governance training program on Governance, Risk, and Compliance (GRC) conducted by the Council in collaboration with Planet Governance Advisory Limited.
He elaborated on the purpose of GRC, emphasizing that it is a program designed to equip individuals with the knowledge required to enhance integrated GRC activities across organizations. The course equips companies with the necessary tools and techniques to understand their obligations, mitigate risks, and establish a structured framework for addressing issues when they arise.
Osawe emphasized that the adoption of GRC is of paramount importance in reducing business failures and plays a vital role in attracting foreign investments to the country. He stated, "The 2018 Nigerian Code of Corporate Governance is an initiative of the Financial Reporting Council, and the essence of corporate governance is to ensure that entities not only operate correctly but also outlive their owners."
He pointed out that certain aspects of the code need more emphasis, particularly in light of the occurrences of business failures both internationally and locally. Osawe stressed the importance of addressing governance, risk, and compliance comprehensively, with the goal of establishing proper structures.
Regarding risk management, he noted the common saying "high risk, high returns," but highlighted the need for intentional and careful risk management, even when pursuing higher returns. He also emphasized the importance of compliance with government regulations to ensure the survival and sustainability of an entity. Compliance involves adhering to rules, legislation, and regulations set by the government.
"So, as a fundamental component of corporate governance, we recognized the necessity of addressing governance, risk, and compliance, especially for those who are actively involved in operations. This is where vulnerabilities arise, and it's often the point of failure. Hence, the reason we've organized this program."
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