Risk Management, Internal Control Systems and Performance of Selected Deposit Money Banks in Lagos State, Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
The study assessed the risk management and internal control systems in the Nigerian banking industry; determined the variables that influences risk management and
internal control systems in the selected deposit money banks, appraises the variables that influence the banks performance, and identified the risk exposed to in their
operations. This was with a view to add to existing body of knowledge and further studies. The study relied mainly on primary data. A self-administered questionnaire was used to gather relevant data from respondents across the selected banks in Lagos. The questionnaire was used in collecting information about variables of risk management and internal control systems. A sample of 122 respondents was selected from the total population using a simple random sampling technique. The data collected were then analysed using multiple regression techniques using SPSS. It was discovered from the study that risk monitoring and risk management policy are
important variables in ensuring effective risk management and internal control systems in the Nigerian banking space. By the result obtained from the multiple
regression analysis, it was observed that there is a positive and direct relationship between Risk Management and Internal Control system and eventual performance of
selected banks (coefficient of 0.351). Risk management policy gave positive (coefficient of 0.643) results when measured against RMIC that exist within the
organization and it proves to be efficient by a low margin. Other factors such as organization objectives, control activities and overall objectives also contribute to
effective risk management and internal control systems in the banking industry. The study concluded that risk management and internal control systems variables
have significant effect on the performance and operations of Nigerian bank. The major findings of the researcher shows how the combination of the two independent
variables(risk management and internal control system) have influenced bank performance in Nigeria. This is a major contribution to the body of knowledge
different to the focus of previous researchers who have only dealt with each of the independent variables as a factor for bank performance in Nigeria
Key words: Risk, Risk Management, Internal control, variables, bank performance and deposit money banks
Word Counts: 325
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Keywords
Risk, Risk Management, Internal control, variables, bank performance and deposit money banks
Citation
Kate Turabia