Enterprise Risk Management and Performance of Nigeria’s Brewery Industry

Abstract

Given the complexity of today’s business world, the process of planning, organizing, leading and controlling the activities of an organization in order to minimize the effect of risk on an organizations’ performance is very important. This involves a risk management system which expands the process to include not just risk associated with accidental losses, but also financial, strategic operating and other risk. It is against this background that our paper examined the effect of enterprise risk management on performance of firms in the brewery industry in Nigeria. The study adopted the cross section survey design and copies of questionnaire were distributed to 375 respondent comprising top and middle level management staff of three major brewing firms in Nigeria. Using Z-test statistic, we found that enterprise Risk Management enhances the performance of firms in the Brewery industry in Nigeria. The study therefore recommends that managers in the brewery industry in Nigeria should continue to adopt and implement enterprise rise management as a tool to enhance organizational performance and this should be backed by policy.

Keywords: ERM, Performance; Brewery Industry; Nigeria