M. I. Fodio

Impact of risk management strategies on prevention of fraud in Nigerian listed insurance firms

This study investigates the impact of risk management strategies on fraud prevention in Nigerian listed insurance firms. Specifically, it examines the effects of internal control mechanisms, biometric and AI-based solutions, forensic accounting techniques, and data mining tools. The population comprises 160 employees of 16 listed insurance companies as at December 2024. Primary data were collected from a sample of 70 respondents who are employees and managers of insurance companies. The data were analyzed using multiple regression. The findings reveal that internal control mechanisms and data mining tools significantly enhance fraud prevention, while forensic accounting techniques show a positive but statistically insignificant effect. Biometric and AI-based solutions, though excluded from the regression model due to multicollinearity, exhibited strong positive correlations with fraud prevention. The study is underpinned by the Fraud Triangle Theory, Enterprise Risk Management Theory, and the Technology Acceptance Model.