Managing Director, Sovereign Trust Insurance Plc, Mr. Wale Onaolapo
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Sovereign Trust Insurance Plc has expressed commitment to the development of the insurance business through the Enterprise Risk Management framework.
In a statement on Friday by its spokesperson, Mr. Segun Bankole, the company said it had set in motion machinery for the implementation of the framework since December 2009.
The company said the move became necessary in order to ensure that the operations of the organisation were carried out on sound business principles with a view to protecting shareholders and other stakeholders’ interest.
“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,” the statement added.
The Managing Director, STI, Mr. Wale Onaolapo, was quoted as saying that the ERM framework was 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 said the Nigerian regulatory environment had evolved with regulators constantly seeking assurances as to the robustness of the risk management capacity and the financial viability of financial institutions in a stressed environment.
He said part of the company’s policy was 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.
According to him, the company maintains a high level of discipline over its investment decisions and where it allocates its capital, seeking to ensure that shareholders’ investments yield good returns yearly.