Original Research Article | OPEN ACCESS

Risk Management and Employee Efficiency of Quoted Commercial Bank in Nigeria

For correspondence:-    

Received: 27 April 2018        Accepted: 30 May 2018        Published: 30 September 2018

Citation: Risk Management and Employee Efficiency of Quoted Commercial Bank in Nigeria. Account Tax Rev 2003; 2(3):61-75 doi:

© 2003 The authors.
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Abstract

Firm risk is an unavoidable consequence of being in business such that if properly managed, shareholders’ returns would be maximised. However, returns are based on the efficiency of employees’ productivity. Thus, this study seeks to investigate the effect of risk management on employees’ efficiency of quoted commercial banks in Nigeria for a five-year period from 2012 to 2016. The population of the study comprises of the 15 quoted commercial banks in Nigeria, on which the judgemental sampling technique is applied, based on market capitalisation, to arrive at the sample size of 11 banks. The ex-post facto research design was adopted, and panel data obtained from the audited annual reports and accounts of the sampled banks are analysed using the descriptive statistics, correlation, and multiple regression techniques via STATA 13.0 software. The study found that credit risk management and operational risk management have a significant effect on employees’ efficiency, while liquidity risk management and capital risk management have an insignificant effect on employees’ efficiency of quoted commercial banks in Nigeria. Therefore, the study concludes that improving the performance of employees in quoted commercial banks in Nigeria would be achieved through continuous policing to advance to use of modern risk management methods that would incorporate all risk areas. Consequently, the study recommends the adoption of just-in-time risk management strategies such as value at risk, risk simulation and risk-adjusted return on equity to mitigate risk and boost performance through improved employee productivity.

Keywords: Risk Management, Employee Efficiency, Revenue per Employee, Quoted Commercial Banks.