THE Board Chair of the Securities and Exchange Commission (SEC), Dr Adu Anane Antwi, has warned that businesses that fail to adapt to proactive Enterprise Risk Management (ERM) frameworks could be exposed to reputational damage, financial mismanagement, and a collapse of investor confidence.
According to him, while enterprise risk management was not a cure-all, its strategic importance for enhancing business sustainability was well documented, by proactively identifying, assessing and mitigating risks.
“Enterprise risk management helps protect value, improves decision-making, ensures regulatory compliance, fosters a risk-aware culture and enhances service delivery,” he noted.
Dr Antwi delivering the keynote address at a Stakeholder Symposium organised by the Office of the Registrar of Companies (ORC) in Accra declared: “If you do not actively attack the risk, they will actively attack you.”
The symposium, held under the theme “Resetting the Business Environment: The Role of Enterprise Risk Management,” brought together stakeholders from the legal, financial, regulatory, and governance sectors to explore how businesses can survive and thrive amid growing global and local uncertainties.
Dr Antwi highlighted that weak corporate governance and sustainability frameworks continue to plague many Ghanaian businesses, resulting in poor accountability, limited transparency, and ineffective oversight.
These failings, he said, not only undermine service delivery but also erode investor trust and competitiveness.
Citing the Allianz Risk Barometer 2025 survey, he noted that cyber incidents and business interruptions remain the two most pressing risks facing global industries, including consumer goods, food and beverages, hospitality, and logistics.
Against this backdrop, he stressed that enterprise risk management was no longer optional but a strategic necessity.
“ERM is not just about avoiding failure, it is about building resilient, adaptable, and forward-thinking organisations that can thrive in a complex and unsettling business environment,” Dr Antwi underscored.
He further urged institutions to climb up the “risk maturity ladder” by embedding risk-aware cultures, strengthening compliance, and leveraging technology such as artificial intelligence to anticipate and mitigate risks.
The Attorney-General and Minister of Justice, Dr Dominic Akuritinga Ayine, reaffirmed government’s support for reforms that promote accountability, transparency, and investor confidence.
He underscored the importance of the Companies Act, 2019 (Act 992), which established the ORC as an autonomous body separate from the Registrar-General’s Department, describing it as a “turning point” in the country’s corporate governance landscape.
“The ability of businesses to identify and manage risk is no longer optional it is essential,” Dr Ayine said.
He called on stakeholders to use the symposium to develop practical recommendations that could guide companies in embedding risk management into their operations, while also applauding the ORC’s efforts in promoting compliance and good governance.
The Acting Registrar of Companies, Mrs Maame Amma Peprah, outlined key reforms under Act 992 designed to align corporate governance with risk management, which included mandatory beneficial ownership disclosures to curb financial crimes, annual filing of audited financial statements to ensure transparency, and limiting auditors’ tenure to six years to strengthen independence.
She also pointed to new insolvency and rescue mechanisms under Act 1031 as crucial tools to help struggling companies avoid collapse.
Mrs Peprah acknowledged challenges such as identity fraud in business registration, non-compliance, and data management gaps, but stressed that robust ERM practices could address these vulnerabilities.
“If we want to build a business environment that attracts investment and supports sustainable growth, we must all take risk seriously,” she stated.
BY CECILIA YADA LAGBA
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