Effective Risk Management Boosts Financial Performance of Nigerian Banks
The article explores how the way banks in Nigeria manage risks affects their financial performance. The study looked at data from 2005 to 2014, focusing on 21 banks. They found that practices like setting risk limits and monitoring adherence to those limits have a significant impact on financial performance. The study also compared risk management practices in other countries like Ghana, Pakistan, and Kenya. The results suggest that banks should establish clear risk management systems to prevent excessive risk-taking by management.