OPENING ADDRESS BY THE CHAIRMAN OF THE NIA, MR. EDDIE EFEKOHA AT THE ONE DAY WORKSHOP ON RISK BASED SUPERVISION ON TUESDAY, NOVEMBER 8, 2016 AT NEM HOUSE, IKORODU ROAD, LAGOS.
I am delighted to welcome you to this one-day workshop which the Association has put together to build capacity and enhance our understanding of the concept of risk-based supervision preparatory to its implementation by NAICOM.
As you are probably aware, the national insurance commission has since commenced the process of consultations and engagement with a view to building consensus among insurance players. This is commendable.
I want to thank Alexander Forbes for coming to our assistance at this critical time and do hope that they will leave here highly fulfilled that they have contributed to the development of the Nigerian insurance market and most importantly, the enhancement of the skills and competencies of our members in the area of Risk based supervision and by extension, risk based capital.
Risk-Based Supervision (RBS) is gradually becoming the dominant approach to regulatory supervision of financial institutions around the world. It is a comprehensive, formally structured system that assesses risks within the financial system, giving priority to the resolution of those risks.
Often contrasted with rules-based regulation, it is also known as principles or compliance-based supervision; a method of regulation which involves checking for and enforcing compliance with rules – legislation, regulations or policies – that apply to an entity.
RBS has a regulatory emphasis of “focusing on what matters” – assessing the degree of risk in the company’s business operations and determining how to reduce the risk as required.
With RBS, entities are always being monitored, both for compliance with the rules and for how they approach risk management.
This programme is intended to address some of the key issues that will help improve our understanding of the subject matter of discussion.
I do hope that you will have value for your time and wish you a successful workshop.