Risk Committee Attributes and Financial Performance of Banks in Nigeria

Abstract

This study investigated the effect of risk committee attributes on the financial performance of Nigerian banks using regression analysis over an eleven-year period (2014–2024). The independent variables were ERMCS and ERMCE, and the dependent variable was ROCE. The results indicate that ERMCE has a positive and statistically significant effect on organizational performance, suggesting that improvements in enterprise risk management committee expertise enhance performance. Although ERMCS shows a positive association with performance, its effect was not statistically significant at 5% level significance, implying that risk management committee size alone does not exert a strong independent influence. The study concludes that ERMCE is a key driver of organizational performance, while ERMCS require reassessment. These findings highlight the need to strengthen ERM practices and maintain an integrated approach to risk management to improve organizational outcomes. The study recommends that since ERMCE has a positive and significant effect on bank performance, banks should prioritise improving its implementation and monitoring to ensure it remains significant and improve performance. On the other hand, although ERMCS shows a positive relationship, it is not statistically significant. Therefore, management should reassess its structure, processes and enforcement to improve its impact.