Assessment of the Enterprise Risk Management (ERM) in the Nigerian Banking Industry

Abstract

This study aimed at evaluating enterprise risk management practice by Deposit Money Banks in Nigeria. Evolving from the research were three specific objectives which were reconstructed into research hypotheses. The hypotheses investigated the relationship between objections and challenges faced by Nigerian banks, government policy, risk and acceptance of enterprise risk management by Nigerian banks. The study utilized an Ex-Post Facto design. A sample of 374 respondents extracted across six geopolitical zones in Nigeria responded to a re-validated 5 points Likert Scale questionnaire. Data extracted from the collection was evaluated using ordinary least square OLS regression analysis. The study revealed that various challenges of practicing banks significantly influences the level of acceptance and implementation of ERM in Nigeria, the government policies on ERM has a direct and significant relationship on the practice of ERM by players in the industry and that the practice of ERM has positively influenced the performance of the Nigerian banks that have accepted and implemented ERM. The study recommended that apex institution should devise a strategic plan and framework to help banks in the implementation of enterprise risk management since it has been adjudged to be the industry best practice in line with Basel III accord.