CHARACTERISTICS OF RISK MANAGEMENT COMMITTEE AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the characteristics of risk management committees as well as the effect on the
financial performance of listed deposit money banks (DMBs) in Nigeria. The study made use of secondary
data gathered from the bank's annual reports, 14 deposit money banks were chosen as a sample using the
purposive sample technique. The data was analyzed using the panel regression approach for the period
of 10 years (2014 to 2023). Using a fixed effect model, the study discovered that the size of risk
management committee has a negative and insignificant impact on the financial performance of deposit
money banks in Nigeria, while independence of risk management committees have a positive and
significant impact on the financial performance of listed deposit money banks in Nigeria. Whereas, risk
management committee expertise displayed a negative but significant impact on the financial performance
of listed deposit money banks in Nigeria. The study suggested that risk management committee should be
made effective by inclusion of more non-executive directors and members with back ground on finance
and actuarial sciences.