The article explores how managing risks affects the financial performance of banks in Nigeria, focusing on commercial banks. The researchers used data analysis methods like GMM and Vector Error Correction Model to study the impact of risk asset management on bank profitability. They found that in the short term, liquidity risk influences bank profitability, while in the long term, credit risk, capital adequacy risk, leverage risk, and liquidity risk play a significant role. Profitability is positively linked to liquidity risk but negatively linked to credit risk. Effective management of credit, capital adequacy, leverage, and liquidity risks is crucial for enhancing bank profitability and ensuring their stability, which can help prevent job losses and other social issues.