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The Effect of Risk Management on Bank's Financial Performance in Nigeria

Olusanmi, O. and Uwuigbe, U. and Uwuigbe, O. R. (2015) The Effect of Risk Management on Bank's Financial Performance in Nigeria. Journal of Accounting and Auditing: Research & Practice.

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Financial management crisis around the world has proven that risk management practices are indispensable for organisations that aim at sustaining customer and shareholder patronage. The examples of Enron, WorldCom, Parmalat, Tyco, Barings Empire, Daiwa Bank debacle, and the recent N192 billion naira stimulation fund injected by the Governor Central Bank of Nigeria Sanusi Lamido into the banking sector to save ailing banks and the economy at large proved to us that effective risk management in banking operations cannot be compromised. This study investigated the impact of effective risk management on bank’s financial performance. The Ordinary least square Regression was employed in testing the hypothesis formulated. Data was collected from the annual reports of banks listed on the floor of the Nigerian Stock Exchange. The study observed that there exist a negative non-significant relationship between risk management proxies and bank’s performance as captured with return on equity. Thus financial performance cannot be explained away by the compliance or non-compliance to Basel’s regulation by financial institutions, but could be as a result of the accumulation of minor difficulties and inconsequential malfunction of the individual actors resulting in a massive breakdown

Item Type: Article
Uncontrolled Keywords: Financial Crisis, Risk Management and Bank Performance
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 29 Jun 2021 12:15
Last Modified: 29 Jun 2021 12:15

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