DELSU JOURNAL OF NATURE, SOCIO-HUMANISTIC AND SCIENTIFIC VALUES

This study investigates the impact of social issues,corruption, digital exclusion, and regulatory instability on the effectiveness of Enterprise Risk Management (ERM) within Nigerian financial institutions. Employing a quantitative research design, data were collected from risk management professionals across banks, insurance firms, and microfinance institutions in Nigeria. Using multiple linear regression analysis, the study reveals that these social challenges significantly and negatively affect ERM effectiveness, explaining approximately 64.1% of the variance in risk management outcomes. Corruption was identified as the most critical factor undermining governance and risk controls, while digital exclusion and regulatory instability also substantially compromised institutions' ability to respond to evolving risks. The findings underscore the necessity for Nigerian financial institutions to incorporate social risk considerations into ERM frameworks, strengthen anti-corruption efforts, invest in digital infrastructure, and advocate for regulatory stability. These measures are vital for enhancing institutional resilience, regulatory compliance, and sustainable performance in Nigeria's complex socio-economic environment. The study contributes to the limited literature on social determinants of ERM effectiveness in emerging markets and offers practical recommendations for policymakers and industry stakeholders.

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