NDIC tasks banks on strong risk management practices to withstand emerging threats

The Nigeria Deposit Insurance Corporation (NDIC) has urged banks to strengthen their risk management practices, corporate governance and operational preparedness to withstand emerging threats to the financial system.

The Managing director (MD) of the NDIC, Thompson Sunday, who spoke in a goodwill message at the 19th annual banking and finance conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.

Sunday said across the world, rapid technological advancement, cyber risks, climate-related concerns, geopolitical uncertainties, and evolving customer expectations are reshaping the financial services landscape.

While the development present significant challenges, according to the MD, he said they also create opportunities for innovation, growth, and greater financial inclusion.

“As the institution mandated to protect depositors’ funds and contribute to financial system stability, the NDIC recognises that resilience extends beyond the ability to withstand shocks,” the MD said.

“It requires strong institutions, sound risk management practices, effective corporate governance, operational preparedness, and the capacity to adapt to emerging risks while maintaining public confidence.”

Sunday said building a resilient financial system is a shared responsibility requiring sustained collaboration among regulators, financial institutions, fintech operators, payment service providers, professional bodies and other stakeholders.

He added that the increasing adoption of technology in financial services has improved financial inclusion and access but also created new risks involving cybersecurity, data protection, fraud and operational resilience.