Corporate Risk Management and Insurance Procurement in the Nigerian Manufacturing Sector

This study examines corporate risk management frameworks and insurance procurement decision-making in Nigeria's manufacturing sector, using firms in the Sagamu Industrial Estate, Ogun State, and the Aba Industrial Cluster, Abia State, as primary study contexts. Manufacturing firms are exposed to a diverse range of property, liability, machinery breakdown, and business interruption risks that necessitate comprehensive insurance programs. Understanding how Nigerian manufacturing companies manage enterprise risks and make insurance procurement decisions is important for identifying gaps in corporate risk transfer and loss prevention practices. This research employs a comparative case study design with data from 45 risk managers, plant managers, and chief financial officers across eight manufacturing firms. In-depth interviews and document reviews assess enterprise risk management maturity, insurance program scope, insurer selection criteria, and claims management experience. Findings are analyzed using thematic and comparative analysis techniques. Preliminary findings are expected to reveal that insurance procurement in many firms is reactive and procurement-cost-driven rather than informed by systematic risk assessments. The study recommends that Nigerian firms adopt formal Enterprise Risk Management (ERM) frameworks aligned with the ISO 31000 standard and engage professional risk consultants in insurance procurement. Keywords: Corporate Risk Management, Insurance Procurement, Manufacturing Sector, Enterprise Risk, ISO 31000.