SANI Saminu
Department of Accounting
Faculty of Management Sciences
Federal University Wukari, Taraba State
sanisaminu4u@gmail.com
HASHIM Usman Muhammad
Department of Banking and Finance
Faculty of Management Sciences
Federal University Wukari, Taraba State
usmanhashim30@gmail.com
ABSTRACT
Risk exposure is a menace that adversely impact corporate growth and survival. Unfortunately, banking collapse in Nigeria is strongly linked to unmitigated risks. Therefore, this study examined risk committee attributes and financial performance of listed Deposit Money Banks (DMBs) in Nigeria. Secondary data from 7 banks for the period 2012 to 2022 was utilized. Correlational research design was used to assess the nature of relationship between financial performance (proxied by return on assets) and indicators of risk management committee attributes (committee independence, committee meeting and committee gender diversity). The random effect regression result showed that risk management committee gender diversity has positive significant impact on financial performance of DMBs in Nigeria while committee independence had significant negative effect on financial performance within the same period. The study recommend inclusion of women to risk management committee so as to improve on financial performance of firms. However, fewer independent members should be included in risk committees considering their limited knowledge about the nature of the banks operations.
Keywords: Financial performance, risk management committee independence, risk management committee meeting, risk management committee gender diversity