FINANCIAL RISK MANAGEMENT AND PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA: EMPIRICAL EVIDENCE FROM UNION BANK PLC

This study focused on financial risk management and profitability of commercial banks in Nigeria, using Union Bank Plc as a case study. The research focuses on how credit, operational, and liquidity risks influence return on assets (ROA). An ex-post facto research design was adopted, drawing on secondary financial data and supplemented by questionnaires and observation. Descriptive statistics, correlation, and simple linear regression were employed to evaluate relationships between risk management practices and profitability. The findings indicate that operational and liquidity risk management exert positive and statistically significant effects on ROA, while credit risk management, though positive, is not significant. Results underscore that effective internal controls, process efficiency, and sound liquidity planning enhance bank performance, whereas credit risk requires more stringent measures to yield measurable returns. The study concluded that robust risk management is essential for sustaining profitability, financial stability, and stakeholder confidence in Nigerian banks. It was therefore recommended continuous staff training, stronger credit appraisal systems, and strict compliance with regulatory guidelines to improve asset quality and long-term bank viability.