Risk Management Committee Attributes and Financial Performance in the Nigerian Banking Sector

ABSTRACT

This study examines risk management committee attributes and financial performance in the Nigerian banking sector.

This study used a sample of 14 deposit money banks that are listed on the Nigerian Exchange. The data were retrieved from the corporate annual reports of the companies for the period of 2014 to 2020. The ordinary least squares regression technique was used to estimate the model specified for the study.

The results of the study showed that risk management committee size and independence have a negative and significant relationship with financial performance while risk management committee meetings have a negative and insignificant relationship with financial performance of deposit money banks. The results also revealed that risk management committee gender diversity has a positive and significant relationship with financial performance. This study therefore concludes that the attributes of RMC have an influencing role on financial performance.

This study recommends among others that banks should be encouraged to establish and maintain an effective and efficient risk management committee as it contributes significantly to their financial performance.