RISK GOVERNANCE MECHANISMS AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The main objective of the study is to examine the relationship between risk governance and financial performance of listed deposit money banks in Nigeria. The population of the study consists of all deposit money banks listed on the floor of Nigerian Exchange Group as at 31st December, 2022. The study used census approach to arrive at the sample size of twelve listed deposit money banks after excluding Jaiz bank and First bank of Nigeria which have incomplete financial statements. The study employed a unilateral convergent unparalleled mix design which was influenced by the philosophy the study is aligned with while the method of data collection is post action multiple case study. The secondary data collected from financial statements was subjected to descriptive analysis, post estimation tests (normality tests, multicollinearity test, hetrokedasticity test). Multiple regression was conducted to find out the relationship between dependent and independent variables. The results of the study reveal that Chief Risk Officer (CRO) and Board risk committee size have a positive and significant impact on financial performance of listed deposit money banks in Nigeria. The study also found out that board risk committee meetings show an insignificant effect on financial performance. Moreover, the study revealed that Enterprise Risk Management (ERM) framework and board risk committee independence show a positive and significant impact on financial performance. Based on the findings, the study concludes that Chief risk officer and board risk committee size positively influence financial performance of Nigerian listed deposit money banks and also enterprise risk management framework is an important risk monitoring and control device. Therefore, it is recommended that the management of the listed deposit money banks should always maintain the designation of chief risk officer as this strengthens the financial performance of listed deposit money banks and also deposit money banks should focus on well-being and development of their workforce to enhance their skills and performance.