RISK MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

Abstract

Risk Management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events .It introduces the idea that the likelihood of an event happening can be reduced, or its consequences minimized. The banking industry is a highly regulated industry with detailed and focused regulators. This is because of the risks associated with it. And these risks, if not properly assessed and prioritized, time can be wasted in dealing with it. At the same time, spending too much time assessing and managing unlikely risks can divert resources that could be used more profitably. This paper discussed the recent
development in the Nigeria banking industry and also out lined the Risk factors in the Banking industry and some principles/steps used in handling them. Also highlighted are some software used in managing Risk in the Banking industry.