Artificial Intelligence on Risk Management Engineering in Non-financial Service Companies Listed in Nigeria

Abstract

Risk management engineering is critical for ensuring stability and resilience in non-financial service firms in Nigeria, especially in the face of economic volatility and operational uncertainties. However, many firms have struggled to optimize risk identification, assessment, and mitigation processes. Studies have shown that the integration of artificial intelligence tools can significantly enhance the effectiveness of risk management engineering. This study examined the effect of artificial intelligence on risk management engineering in non-financial service firms listed in Nigeria. The study adopted survey research design. The population comprised 3,800 employees of the 26 non-financial service companies listed on the Nigeria Exchange Limited as at 31 December 2023. Taro Yamane’s formula was used to determine the sample size of 380. Simple random sampling technique was used to select the respondents. Data were collected using structured and validated questionnaire. Reliability testing confirmed strong internal consistency across all constructs. The study achieved a high response rate, and a substantial majority of participants strongly endorsed the potential of artificial intelligence to enhance risk management engineering. Further analysis demonstrated a significant positive impact of artificial intelligence on risk management outcomes. The study concluded that artificial intelligence enhanced risk management engineering in non-financial service companies listed in Nigeria. It was recommended that management of non-financial companies should integrate artificial intelligence to optimize financial decision-making, risk management and investment strategies towards maximizing profits for all stakeholders, also regulatory authorities should facilitate AI adoption through incentives such as tax reliefs for firms investing in AIbased solutions to enhance financial engineering.