Effect of Risk Management on Financial Performance of Listed Deposit Money Banks in Nigeria

This study examined the effect of risk management on the financial performance of listed deposit money banks in Nigeria. The study used an ex post facto design, targeting 19 listed deposit money banks in Nigeria as of 31st December 2022. A sample of 14 banks was purposively selected, meeting the criteria of being listed before 31st December 2014 and having complete annual reports for the 2014-2023 period. Descriptive statistics and regression analysis were used to analyze the data obtained. The study found that, credit risk has positive but insignificant effect on the financial performance of the listed deposit money banks in Nigeria. While, interest risk and liquidity risk have positive and significant effect on financial performance of deposit money banks in Nigeria. The study concluded that risk management influence financial performance of listed deposit money banks in Nigeria. The study therefore study recommends among others deposit money banks in Nigeria should improve on their credit risk management practice by way of implementing effective credit assessment, monitoring, and recovery mechanisms to minimize the impact of credit risk on their financial performance. They should also focus on diversifying their loan portfolios, setting appropriate credit limits, and strengthening their credit risk modeling and analysis capabilities to enhance their resilience to credit-related shocks.