Risk Management Practices in the Commercial Banking Industry in Nigeria

Bello, Rasheed A (2020) Risk Management Practices in the Commercial Banking Industry in Nigeria. Doctoral thesis (PhD), Manchester Metropolitan University.

Preview

Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (3MB) | Preview

Abstract

The study examined the critical success factors leading to effective risk management practices in the commercial banking industry. This entailed the evolution of the Nigerian banking system with a focus on commercial banks. Examination of the dynamic of the Nigerian banking system since 1960 involved the exploration of the extant literature on risk management to identify and evaluate the critical success factors for effective risk management practices. Further, a mixed-method approach involved interviews and a questionnaire to collect relevant data from randomly selected commercial banks in Nigeria. The data collected from the interviews was exclusively used to identify the major risks facing the commercial banks in Nigeria, and the risk management challenges confronting these banks. While the respondents identified ten critical factors facing commercial banks in Nigeria, the regression analysis found six to be statistically significant: strategic alignment, internal audit and compliance, information technology, trust, organisational structure, and customer involvement. Although the coefficients of these variables were expected to be positive, the regression analysis showed that the coefficients of two variables - organisational structure and customer involvement - were negative.