Abstract:

This study examines the impact of risk governance on firm performance of 50 listed firms in the Nigerian financial sector for the period of five years (2013-2017). This study employed the use of panel data to examine the impact of risk governance variables (ERM_index, CRO_presence, BRC_size, BRC_activism, and BRC_independence) on firm performance (ROA). The study provides empirical evidence which shows that most of the risk governance variables (ERM_index, CRO_presence, BRC_activism, and BRC_independence) have a positive and significant impact on firm performance except BRC_size which shows a negative relationship with firm performance. The empirical evidence observed in this study reveals that the institutionalization of risk culture, strong risk oversight functions and increase in risk accountability by the board have greater tendency to enhance the performance of a firm. This study recommends that corporate organisations should strengthen their risk committee composition with people that are knowledgeable in risk and finance-related issues. This will further strengthen the risk governance process and enhance firm’s performance.