Internal Control and Effective Risk Management in Nigerian Insurance Companies

Abstract

This research study assesses internal control and effective risk management in Insurance companies in Nigeria with the specific objective of knowing the relationship between effective risk management and internal control measures such as presentation of early report, respect for authority, cost of instituting internal control measures, control measures for unusual transactions, and well-designed organizational structure. Descriptive survey research technique was employed in the study with the aid of an adapted multiple regression model which was used to analyzed the response received from questionnaires because primary data was sourced from the audit, account and operations department of all insurance companies represented in Abuja. Findings reveal that good internal control measures produces effective risk management system. This study recommends that internal control staffs should be autonomous, answerable to authorities and should be ethical in the discharge of their duties.