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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Publisher

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