Enterprise Risk Management (ERM) Practices and Organizational Culture within the Nigerian Insurance Industry

Abstract

This study examines the interplay between Enterprise Risk Management (ERM) practices and organizational culture within the Nigerian insurance industry. ERM, a holistic framework for identifying, assessing, and managing risks, is essential for navigating the volatile and complex risk landscape faced by insurers. While ERM frameworks are widely recognized as critical for improving operational resilience and compliance, their success hinges on integration with organizational culture defined by shared values, beliefs, and behaviors that influence employee interactions and decision-making processes.Using a cross-sectional survey design, the research targeted 30 Nigerian insurance firms and a diverse sample of 300 employees, including risk officers, managers, and operational staff. Data were collected via structured questionnaires and analyzed using descriptive statistics and regression models. The findings reveal a significant positive correlation between ERM practices and organizational culture. Specifically, robust ERM frameworks enhance risk awareness, decision-making, and communication flows, while fostering a culture of accountability and transparency. Leadership commitment, effective governance structures, and proactive communication emerged as critical enablers of successful ERM integration.