Abstract:
Businesses in the Nigerian financial services sector are continuously and relentlessly seeking the best and appropriate risk management strategies and/or techniques to be adopted, which would enable them to operate effectively and successfully within the harsh business terrain, surrounded by, and filled with risks and risk factors.
This study took a critical examination at the risk management strategies adopted in the Nigerian financial service sector, while studying selected financial institutions within the sector. These selected financial institutions included two banks and one insurance institution located within Enugu metropolis. On the one hand, risk is defined as the prospect of financial loss attributable to unforeseen changes in underlying risk factors. On the other hand, risk management is defined as a series of measures under taken by a business towards managing or controlling risk or likely risk occurrence, by averting it or minimizing its overall impact on the organization.
The Objectives that were set out be achieved by this research study included the following: To determine the implications of risk management in the Nigerian financial service sector, to determine the risk management strategies and /or techniques adopted is the Nigerian financial sector, to identify the various types of risks that occur in the Nigerian financial sector and to identify areas where risk management is applied in the Nigerian financial sector.
The sample size for this research was set at 190, and the researcher employed the tools of physical interviews and questionnaires to source for primary data. The secondary data was gotten via journals and publications on related topics. This researcher also used the chi-square and correlation analysis in testing the formulated hypotheses.
The findings from this research work reliably revealed that almost all the respondents who responded to the questions in the questionnaires agreed to the fact that; there are several implications of risk management in the Nigerian financial service sector, both positive and negative; there are several risk management strategies and /or techniques adopted in the Nigerian financial sector which help to eliminate or minimize risk or likely risk occurrences; there are various types of risks that occur in the Nigerian financial sector; and finally, there are several areas where risk management is usually applied in the Nigerian financial sector.
Based on the findings, appropriate recommendations were made to the targeted audience, and a conclusion was drawn.
