Sustaining good corporate culture key to survival of financial system-NMRC boss

MOTOLANI OSENI

The Managing Director and Chief Executive of the Nigeria Mortgage Refinance Company (NMRC), Mr Kehinde Ogundimu, has said, building and sustaining a good corporate culture is critical to the stability and survival of institutions and the Nigerian financial system.

Ogundimu, while speaking at the 50th quarterly general meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) noted the critical role of internal audit in building a sustainable organizational culture.

Delivering the keynote address themed: ‘the Role of Internal Audit in Building a Sustainable Organizational Culture’, Ogundimu said: the failure of many corporate giants like Enron and some of the liquidated local banks in Nigeria have been attributed largely to poor corporate governance, driven by poor organizational culture.

“A distinguishing feature of leading organizations is their culture. Culture affects performance, employee engagement and the ability to create an innovative and positive work environment. Many chief executive officers believe that improving culture would improve the value of their companies, because organizational culture impacts the appetite for change, innovation and risk awareness.”

Noting that there is a strong relationship between organisational culture and corporate brand, he said, every organisation, including financial institutions, values its brand and will go to every extent to protect it. The organizational culture must be right to sustain the reputation of the brand.

He reiterated that “poor organisational culture heightens reputational risk exposure to the organization and must be carefully managed.” Highlighting the role of Internal Audit (IA) in building a sustainable organizational culture, Ogundimu said, objective assurance and consulting activity of the internal audit is designed to add value and improve an organisation’s operations by assisting in the establishment and sustenance of a good organizational culture.