The Role of Risk Management Policies in Shaping Financial Performance of Quoted Deposit Money Banks in Nigeria

Solanky George Ayanate PhD Apugu Samuel Claudius PhD

doi:10.56201/ijssmr.vol.11no12.2025.pg700.708

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The Role of Risk Management Policies in Shaping Financial Performance of Quoted Deposit Money Banks in Nigeria

Solanky George Ayanate PhD Apugu Samuel Claudius PhD

Abstract

This study investigated the role of risk management policies in shaping financial performance in a context specific of quoted deposit money banks in Nigeria. The research design of the study is content analysis with systematic literature review. Conceptually, risk management policies are the set of formal rules, regulations and instructions that are documented and approved by top management of an organization or internal governing bodies that prescribes in sufficient operational details, a company’s perception and behavior towards the range of risks it faces and desires to manage. Financial performance on the other hand, is the successes or failures recorded in monetary or financial terms by the work organization usually in an accounting period. Deposit money banks which are quoted on the floor of the Nigeria stock exchange group must work to ensure financial performance. One of the ways to ensure banks’ financial performance is through well-crafted enterprise risk management policy frameworks, several empirical studies were carried out validating the strong nexus between risk management policies and financial performance in different cultures with relative methodologies. Research evidences are abounded that, risk management policies significantly improve financial performance. This study therefore concludes that implementation of risk management policy frameworks by quoted deposit money banks will bring about sustained financial performance of such banks. We therefore recommend that the banks should craft enterprise risk management policies that should incorporate risk governance and risk identification. This will enhance revenue and profits growths of the banks and significantly improve the financial performance of the banking institutions.

Keywords

Risk managementpoliciesfinancial performancequoted deposit money banksNigeria.

References

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The Role of Risk Management Policies in Shaping Financial Performance of Quoted Deposit Money Banks in Nigeria

Abstract

Keywords

References

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