EFFECT OF RISK MANAGEMENT PRACTICES ON COST-EFFECTIVENESS OF MOBILE NETWORK OPERATORS IN THE NIGERIAN TELECOMMUNICATION INDUSTRY: THE MODERATING ROLE OF COMMUNICATION AND CONSULTATION

Authors

DOI:

https://doi.org/10.18623/rvd.v23.6566

Keywords:

Risk Management, Cost-Effectiveness, Communication and Consultation, Mobile Network Operators, Nigeria

Abstract

This study examined the effect of risk management practices on the cost-effectiveness of Mobile Network Operators (MNOs) in the Nigerian telecommunication industry, with communication and consultation as a moderating variable. The study was anchored on the Enterprise Risk Management framework and adopted a descriptive survey research design. Data were collected from employees of selected MNOs in Nigeria, including MTN Nigeria Plc, Globacom Ltd, Airtel Nigeria, 9mobile, NATCOM Development & Investment Ltd., and Mafab Communications Limited. A structured four-point Likert scale questionnaire was used as the primary instrument for data collection. The study employed Structural Equation Model (SEM) using SmartPLS 4 to analyse the relationship among risk identification, risk assessment, risk evaluation, risk mitigation, risk monitoring, communication and consultation, and cost-effectiveness. The findings revealed that communication and consultation had a significant positive effect on cost-effectiveness, while risk identification also significantly improved cost-effectiveness. However, risk assessment, risk evaluation, risk monitoring, and risk mitigation had insignificant effects. The moderation result showed that communication and consultation significantly moderated the relationship between risk identification and cost-effectiveness. The study recommends timely communication, proactive risk identification, and stronger integration of risk practices into cost-control decisions.

References

Al-Hajaya, K. (2026). ESG performance and corporate corruption risk management: The moderating role of risk management committees in GCC firms. Journal of Risk and Financial Management, 19(1), 38. https://doi.org/10.3390/jrfm19010038

Aloulou, W. J., & Alshohail, N. F. (2026). From control to value: How governance, risk management and compliance improve operational efficiency and company reputation in Saudi technology-driven firms. Risks, 14(1), 19. https://doi.org/10.3390/risks14010019

Baltas, K. N., & Liñares-Zegarra, J. M. (2025). Efficiency and financial risk management practices of microfinance institutions. International Journal of Finance & Economics, 30(2), 1011–1031. https://doi.org/10.1002/ijfe.2956

Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming (3rd ed.). Routledge.

Committee of Sponsoring Organizations of the Treadway Commission. (2004). Enterprise risk management—Integrated framework. COSO.

Committee of Sponsoring Organizations of the Treadway Commission. (2017). Enterprise risk management—Integrating with strategy and performance. COSO.

Darsono, D., Ratmono, D., Tujori, A., & Clarisa, T. Y. (2025). The relationship between ESG, financial performance, and cost of debt: The role of independent assurance. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2024.2437137

Egiyi, M. A., & Eze, R. C. (2022). The influence of risk management on organizational efficiency. Annals of Management Sciences, 9(1), 10–15.

Gharaibeh, H. M. (2019). Challenges and benefits of applying risk management to construction projects in Jordan. International Journal of Civil Engineering, Construction and Estate Management, 7(3), 22–36.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.

Horvey, S. S., & Odei-Mensah, J. (2025). Enterprise risk management, corporate governance and insurers risk-taking behaviour in South Africa: Evidence from a linear and threshold analysis. Journal of Accounting in Emerging Economies, 15(1), 53–83. https://doi.org/10.1108/JAEE-08-2023-0242

Jöreskog, K. G. (1970). A general method for analysis of covariance structures. Biometrika, 57(2), 239–251. https://doi.org/10.1093/biomet/57.2.239

Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). Guilford Press.

Kouloukoui, D., da Silva Gomes, S. M., Torres, F. A., & others. (2025). Business climate risk management: International perspectives and strategic determinants. Environment, Development and Sustainability, 27, 4683–4724. https://doi.org/10.1007/s10668-023-04094-z

Mustapha, B., Olaleye, B. R., Yetunde, O. B., Olanike, O. O., Akindele, G., Abdurrashid, I., Adedokun, J. O., Bamidele, J. A., & Owoniya, B. O. (2023). Risk management practice and organizational performance: The mediating role of business model innovation. Journal of Law and Sustainable Development, 11(4), e892. https://doi.org/10.55908/sdgs.v11i4.892

Mwangi, H. M., & Ngugi, L. (2018). Risk management practices and performance of construction projects in Nairobi City County Government, Kenya. International Academic Journal of Information Sciences and Project Management, 3(2), 111–136. http://www.iajournals.org/articles/iajispm_v3_i2_111_136.pdf

Nguyen, M. V. (2026). Exploring the impacts of risk perception and risk management planning on innovation orientation: A PLS-SEM approach. Engineering, Construction and Architectural Management, 33(1), 509–531. https://doi.org/10.1108/ECAM-01-2024-0137

Nguyen, N. M., Abu Afifa, M. M., Thi Truc Dao, V., Van Bui, D., & Vo Van, H. (2026). The influence of business intelligence and sustainable risk management on sustainability performance: Moderated mediating model by information technology governance. International Journal of Organizational Analysis, 34(4), 1300–1329. https://doi.org/10.1108/IJOA-05-2024-4494

Oko-Odion, C., & Angela, O. (2025). Risk management frameworks for financial institutions in a rapidly changing economic landscape. International Journal of Science and Research Archive, 14(1), 1182–1204. https://doi.org/10.30574/ijsra.2025.14.1.0155

Oreshile, S. A., Zainudin, R., & Mahdzan, N. S. (2026). Enterprise risk management quality and financial distress in African firms: Insights from firm heterogeneity. Journal of Accounting in Emerging Economies, 16(2), 233–261. https://doi.org/10.1108/JAEE-03-2025-0118

Shah, S. Q. A., Lai, F., Shad, M. K., Hamad, S., & Ellili, N. O. D. (2025). Exploring the effect of enterprise risk management for ESG risks towards green growth. International Journal of Productivity and Performance Management, 74(1), 224–249. https://doi.org/10.1108/IJPPM-10-2023-0582

Shi, X., Zhang, Y., Yu, M., & Zhang, L. (2025). Deep learning for enhanced risk management: A novel approach to analyzing financial reports. PeerJ Computer Science, 11, e2661. https://doi.org/10.7717/peerj-cs.2661

Soi, G. J., Mzenzi, S. I., & Suluo, S. (2026). Assessing the influence of audit committee characteristics on the effectiveness of risk management practices in public statutory corporations in Tanzania. Business Management Review, 28(2), Article 5. https://doi.org/10.56279/bmrj.v28i1.8610

Toumeh, A. A., & Ghazalat, A. (2026). Mandatory governance and risk management committees and firm performance: Evidence from Jordan’s non-financial sector. Cogent Business & Management, 13(1). https://doi.org/10.1080/23311975.2026.2618306

Wright, S. (1921). Correlation and causation. Journal of Agricultural Research, 20(7), 557–585.

Yahaya, O. A. (2026). How could earnings quality profit from risk management committee presence? Journal of Business, Economics and Management, 19(1), 615–638. https://journal.skillsoftpublishers.com/index.php/jbem/index

Yahaya, O. A. (2026). The impact of credit risk management on the financial performance and valuation of banks in Nigeria. International Journal of Accounting, 22(2), 110–138. https://10.10181/ija.2026.v22i2.110

Yue, Y. (2025). Time-series nested reinforcement learning for dynamic risk control in nonlinear financial markets. Transactions on Computational and Scientific Methods, 5(1). https://doi.org/10.5281/zenodo.14677117

Zhang, L. S. (2025). The impact of ESG performance on the financial performance of companies: Evidence from China’s Shanghai and Shenzhen A-share listed companies. Frontiers in Environmental Science, 13, 1507151. https://doi.org/10.3389/fenvs.2025.1507151

Downloads

Published

2026-05-15

How to Cite

Aikpokhio, B. N., Abubakar, H. L., & Azu, N. P. (2026). EFFECT OF RISK MANAGEMENT PRACTICES ON COST-EFFECTIVENESS OF MOBILE NETWORK OPERATORS IN THE NIGERIAN TELECOMMUNICATION INDUSTRY: THE MODERATING ROLE OF COMMUNICATION AND CONSULTATION. Veredas Do Direito, 23(8), e236566. https://doi.org/10.18623/rvd.v23.6566

Issue

Vol. 23 No. 8 (2026): Veredas do Direito, v. 23, n. 8 2026

Section

Articles

License

I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.

I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.

 

Licença Creative Commons Attribution 3.0