Strategic Financial Risk Management and Organizational Effectiveness in NEM Insurance Plc Lagos Nigeria

Abstract

This study explores how strategic financial risk management shapes organizational effectiveness in NEM Insurance Plc, Lagos, Nigeria. On a five-key set of components of strategic financial risk management: risk identification, risk assessment and analysis, risk control and mitigation, risk monitoring and reporting, and weaving risk management into corporate strategy on Operational Efficiency, Financial Performance (profitability and return on assets), Adaptability and Resilience, Customer Satisfaction and Market Share as well as Regulatory Compliance all encompassed as organizational effectiveness, this study is anchored. Using a descriptive survey design, gathering insights from 150 employees of the study organization, and analyzing the data with SPSS Version 25, results and conclusions are drawn. Through descriptive statistics, correlation analysis, and multiple regression techniques, the findings reveal that all components have a significant and positive effect on organizational effectiveness, with risk assessment and analysis emerging as the most impactful factor. The study highlights the necessity of enhancing risk monitoring and embedding risk management into strategic decision-making. These insights add to the limited empirical research on financial risk management within Nigeria’s insurance sector and provide practical guidance for boosting organizational performance through stronger risk management frameworks.