EFFECT OF RISK MANAGEMENT DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study investigates the effect of risk management disclosure on the financial performance of listed deposit money banks (DMBs) in Nigeria. With increasing global financial uncertainty and regulatory emphasis on transparency, the role of risk management practices—particularly in relation to credit risk, liquidity risk, and operational risk—has become vital in ensuring bank stability and profitability. The study adopts an ex post facto research design, analyzing panel data from ten (10) listed DMBs in Nigeria over a twelve-year period (2013–2024). Secondary data were obtained from audited financial statements, and the analysis was conducted using EViews version 7, employing descriptive statistics, multicollinearity tests (VIF), correlation analysis, heteroskedasticity tests, and panel regression models, including the Hausman specification test. The findings reveal that credit risk, operational risk and liquidity risk have a statistically significant and positive effect on banks' financial performance, measured by Return on Assets (ROA). The study concludes that effective risk management disclosure, particularly in credit and operational domains, plays a crucial role in enhancing financial performance. It recommends that Nigerian banks strengthen their risk governance frameworks, invest in risk monitoring systems, and adopt international disclosure standards to improve stakeholder confidence and ensure long-term profitability. The findings also offer valuable implications for policymakers, investors, and regulators concerned with financial system stability and transparency.