Authors : Lukman Oyebisi; Joshua Adewale Adejuwon

Volume/Issue : Volume 10 - 2025, Issue 3 - March

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DOI : https://doi.org/10.38124/ijisrt/25mar332

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Abstract : Risk assessment is one of the major dimensions of the internal control system which plays a significant role in the financial stability and operational efficiency of Deposit Money Banks (DMBs). Weak risk management practice, fraud and regulatory noncompliance have placed the banking sector of Nigeria under multiple crisis. In this study the secondary qualitative empirical approach is used to investigate how the risk assessment affects performance of selected Nigerian DMBs. The data was analyzed thematically using data from regulatory reports, industry case studies, existing literature. Results indicate that banks with good risk assessment framework continue to outperform in terms of their financial performance, reduced operational risks and also in terms of compliance with regulatory requirements. On the other hand, institutes without proper risk assessment techniques suffer from financial distress, liquidity crisis and reputation damage. The study tackles existing discussions on banking sector reforms and offers policy recommendations aimed at reinforcing risk assessment mechanisms.

Keywords : Risk Assessment, Internal Control Systems, Bank Performance, Nigeria, Deposit Money Banks.

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