The Nigeria Deposit Insurance Corporation has attributed its swift payment of depositors of the failed Heritage Bank to advanced technology and robust cybersecurity measures.

The managing director of NDIC, Bello Hassan, disclosed this at the 2024 Mid-Year Enterprise Risk Management conference in Lagos.

The event was organised by the Association of Enterprise Risk Management Professionals.

It also featured induction of new members into the emeritus category and induction of newly qualified members of fellows and associates.

The theme of the conference, “Enterprise risk management framework: Implementation and global best practices in the capital and money market,” addressed the financial system’s critical role in ensuring economic stability.

Mr Hassan, represented by the Director Enterprises Risk Management Department, NDIC, Amal Haruna, emphasised the importance of ERM in preventing financial losses due to cyber threats and highlighted the corporation’s proactive approach to managing risks.

The NDIC boss explained that the prompt payment of depositors had boosted confidence in the banking industry and stabilised the financial system.

He emphasised that financial losses could erode investor and customer confidence, highlighting NDIC’s proactive measures in handling Heritage Bank’s risks and liquidation.

He said, “These risks are not static; they adapt and grow in complexity, requiring constant vigilance and innovation in our defence strategies. The corporation leveraged technology and cybersecurity risk strategies to ensure we achieve our core mandate to protect depositors. This is evident in our prompt payment of depositors after the recent closure of Heritage Bank in June 2024, which has greatly enhanced confidence in the banking industry and provided stability in the financial system.’’

Mr Hassan commended regulatory bodies for their efforts against emerging threats and commended the event’s organisers.

Director General of the Securities and Exchange Commission, Emomotimi Agama, highlighted Nigeria’s capital market’s untapped potential.

Mr Agama stated that improved risk management could foster significant growth in the capital market, adding, “an economy that does not have a strong capital market is a weak economy. By adopting ERM, companies can create value for investors, improve their reputation, and contribute to a more stable and efficient capital market.”

President of the Chartered Institute of Bankers of Nigeria, Pius Olanrewaju, noted that organisations with ERM were less vulnerable due to safety nets provided by extensive experience and knowledge.

Mr Olanrewaju, represented by member, Governing Council, CIBN, Opeoluwa Awolesi, emphasised the importance of cybersecurity, given the vulnerability of many countries.

President, Association of Professional Women Bankers, Funke Ladimeji, noted the increasing depth and dimensions of risks, stressing the need for greater focus.

She said that financial institutions were among the most vulnerable to risk and urged professionals to be proactive in providing leadership and direction.

 (NAN)