Microsoft Word - UPLOAD TO ME HASSAN GUJAF VOL 6 ISSUE 2 APRIL MR HASSAN 2222[1] Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 36 THE EFFECT OF RISK MANAGEMENT COMMITTEE ON THE FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA Blessing Unekuojo Oguche Department of Accounting, ABU Business School Ahmadu Bello University, Zaria-Nigeria. Phone: +447831162506, blessingoguche45@gmail.com Luka Mailafia Department of Accounting, ABU Business School Ahmadu Bello University, Zaria-Nigeria. Phone: +2348065635743 Aliyu Abdullahi AHMED Department of Accounting, ABU Business School Ahmadu Bello University, Zaria-Nigeria. Phone: +2347068637232, aliyuahmedabdullah@gmail.com https://doi.org/10.57233/gujaf.v6i2.03 Abstract This study examined the effect of risk management committee on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria. Financial performance which is the dependent variable was proxied by return on assets (ROA), while enterprise risk management as the independent variable was proxied by risk management committee independence, risk committee size, ISO 27001 framework and COSO framework. Data were collected from secondary source. The data were extracted from the audited annual reports of the 14 listed DMBs on the Nigerian Exchange (NGX) for the period of 2016-2022. The study employed the Generalized Least Square (GLS) regression technique in analyzing the study data. The findings revealed that ISO 27001 framework and COSO framework have a positive and significant effect on the financial performance of listed DMBs in Nigeria. Hence, it was concluded that ISO 27001 framework and COSO framework are among the major determinants of financial performance of listed DMBs in Nigeria. It was recommended that the managements of the listed DMBs in Nigeria should increase the use of ISO 27001 and COSO framework to assist them in mitigating risk and increasing the financial performance of the banks. Keywords: Deposit money banks, enterprise risk management, financial performance, Nigeria. 1.0 Introduction Financial performance has been an issue of concern to many businesses and stakeholders in different parts of the world. The collapse of many organizations in recent times, most especially financial institutions has called on the attention of various stakeholders in the financial sector to re-examine the issue of corporate financial performance in the financial institutions (Karim, 2024). Recently, the global banking system has been in turmoil following the collapse of banks in advanced countries in Europe and America. The collapse of these banks such as Silicon Valley Bank, First Republic Bank, etc., have created fears in the minds of creditors and other stakeholders about the condition of the global financial institutions (Thompson, 2023). Also, in Nigeria the financial institutions in the country have faced several challenges that have led to the collapse of many banks. For example, the failure of Skye Bank Plc, Diamond Bank Plc, and Heritage Bank, among others. These crises were as a result of a huge problem of risks exposed in the course of carrying out their primary function of financial intermediation Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 37 (Ogbebor et al., 2020). According to Jarrett (2016), the main purpose of a business entity is to generate returns to its shareholders in the form of wealth creation or maximization. Where this entity is exposed to adverse enterprise risk it may result to poor financial performance of such an entity, hence affecting the long-term objective of the entity. Analysts and investors use financial performance to compare similar companies across the same industry, or to aggregate industries or sectors. Financial achievement calls for concrete consequences in the strategies and practices of a company. Those results are reflected in the company's return on investment, asset benefit, value-added, etc. A comparative measure of how easily a company can maximize and deliver revenue from its primary business type inventory. Financial performance is the degree to which an organization’s financial stability is measured throughout some time. Zemzem and Kacem (2014), opine that there exists a relationship between the risk variables and financial performance. Thus, risk management’s primary responsibility is to monitor management's participation in riskier activities that may have affected the firm's objectives and to inform management when such activities reach an unacceptable risk level that may impede the firm's financial performance. Furthermore, the solvency and liquidity stress test conducted by the Central Bank of Nigeria (CBN) in 2022 to determine and analyze the banking institutions weaknesses and risks to assess the financial soundness and fitness of the financial institutions shows a poor financial performance with the decline of the bank’s capital adequacy ratio, increase in non-performing loans among other performance indicators (CBN, 2022). As a result of this, it is argued that the DMBs in Nigeria might be declaring profit, but their long-term strength and opportunities which depend largely on their ability to maximize shareholder’s wealth with a poor level of financial performance and this may threaten their going concern goal. For an entity to avoid the threat of going concern, management must utilize companies’ asset profitability to achieve corporate objectives. Many control mechanisms have been put in place in corporate organizations to reduce agency problems and associated costs to safeguard the shareholder’s wealth and improve the company’s financial performance. One of such mechanism is the corporate governance mechanism to monitor the companies’ management system, risk control and financial compliance in the preparation and presentation of financial reports (Adepoju, 2020). This study concentrated on the enterprise risk committee of a firm to examine how it influences the financial performance of the listed DMBs in Nigeria. From the review conducted on previous research in this field, it was discovered that many literatures have considered board characteristics on the financial performance of listed DMBs. For example, Yahaya and Yakubu (2022) examined how board size, independence, board gender and board meetings impacted financial performance in Nigeria; Aldhamari et al. (2020) assessed the effect of board size, independence, board gender, and board meetings on financial performance. Odubuasi et al. (2022) evaluated board size, independence, and diversity on the financial performance of DMBs. Except of Chukwujekwu, et al. (2020) who examined the impact of risk management committee attributes on the financial performance of Nigerian banks, none of these studies examined the relationship between the International Organization for Standardization (ISO) 27001 Framework, Committee of Sponsoring Organization (COSO) Framework and financial performance of listed DMBs in Nigeria. In line with this, the study Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 38 examined the effect of risk committee independence, size, ISO framework, and COCO framework on the financial performance of listed DMBs in Nigeria. 2.0 Literature Review This section of the study, covers the conceptual review, empirical review and theoretical review of the study. Financial Performance According to Abdullahi et al. (2023) the concept of "performance" has two levels, including efficiency and effectiveness. Effectiveness is the degree to which objectives are attained, whereas efficiency is the ratio between input and output. According to management's motivation theory, performance is defined as the volume of work a staff completes. Fali et al. (2020), posited that financial performance is a subjective measure of how well a company can harness assets from its primary business mode and generate revenue. Often, the term is used as a general indicator of the overall financial performance of a company over a given timeframe. Analysts and investors use financial performance to compare similar companies across the same industry, or to aggregate industries or sectors (Nworie & Ofoje 2022). Financial achievement calls for concrete consequences in the strategies and practices of a company. Those results are reflected in the company's return on investment, asset benefit, value-added, etc. Financial performance is one of the most important variables in management research and arguably the most important indicator of any organization. Performance is the strategic outcome that a business employs to accomplish its goals. Any corporate management or business owner's top priority is efficiency. The level of an organization's ability to accomplish its set goals, including a measure of overall competitiveness, is the level of performance. A company's performance can provide corporate management with information about the financial and non-financial conditions at the time of evaluation. (Abdullahi et al., 2023). According to Igwe et al. (2017) Performance is a matrix for how effectively a management team generates income using all available resources. Because it can be used to forecast the company's future earnings, investors are interested in a company's success. Some of the many metrics used by academics to evaluate performance include the Return on Assets (ROA), Price Earnings Ratio (PER), and Return on Equity (ROE) (Haddad et al., 2021; Ugwu et al., 2020). In this study, the main criterion for assessing financial performance was ROA. Risk Management Committee Risk management committee refers to subcommittee of the board of directors that whose function is to identify potential risks in advance, analyze them and take precautionary steps to curb the risk. When an entity makes an investment decision, it exposes itself to several financial risks. The quantum of such risks depends on the nature of the investment (Karim, 2024). When it comes to the corporation's risk tolerance, the process for managing and enforcing that risk, and the governance architecture that supports those activities, the committee provides support to the board of directors as it fulfills its regulatory obligations (Karim, 2024). Risk Committee Independence Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 39 Independent directors are referred to as external non-executive directors. They are referred to as independent directors because they have no personal or professional connections to the corporation (Oyedokun, 2019). To put it another way, an individual who serves as an independent director on the risk management committee is not personally connected to the company's executives. Since they have no close connection with the company, independent directors tend to act objectively so as to align the management interest with those of the shareholders. Many individuals think that the risk management committee's independence from management and governance is demonstrated by the participation of a substantial number of non-executive board members (Lamidi et al., 2022). Many studies have studied the relationship between financial performance and the independence of risk management committees. While some of these research (Abubakar et al., 2018; Fali et al., 2020) found no relationship between risk management committee independence and financial performance, others (Aldhamari et al., 2020; Malik et al., 2019) found significant relationship between risk management committee independence and financial performance. The study states it second hypothesis as follows: H01: Risk management committee independence has no significant effect on the financial performance of listed deposit money banks in Nigeria. Risk Committee Size The total number of members of a risk management committee is referred to as the committee's size. The success of a committee is frequently dependent on its size, or resources (Omotoye et al., 2021). A larger risk management committee with more diverse knowledge, by agency theory, may be able to better monitor management behavior about risk management and ensure that investments are in line with strategic goals, assisting in the prevention of financial crises by reducing risk and adverse selection that could negatively affect performance (Elamer & Benyazid, 2018). Numerous studies have been conducted on the relationship between risk management committee size and financial performance. Some of these studies (Alduneibat, 2023; Elamer & Benyazid, 2018; Omotoye, et al., 2021) found a significant relationship between risk management committee size and financial performance, whereas others (Chukwujekwu, et al., 2020; Fali, et al., 2020) found no relationship between risk management committee size and financial performance of firms. Based on this, the study formulated its first hypothesis as thus: H02: Risk management committee size has no significant effect on the financial performance of listed deposit money banks in Nigeria. International Organization for Standardization (ISO) 27001 Framework International Standardization for Organization (ISO), is the world’s best-known standard for information security management systems (ISMS). It defines the requirements an ISMS must meet. The ISO 27001 standard provides companies of any size and from all sectors of activity with guidance for establishing, improving, maintaining and continually improving an information security management system. ISO framework provides a framework and process for managing risk. It can be used by any organization regardless of its size, activity or sector (International Standardization for Organization [ISO], 2022). ISO helps organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment. Several studies have been conducted on the relationship between ISO and financial performance. Some of these studies Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 40 (Bokhari & Manzoor 2022; Chakroun et al. 2020; Jiang, 2020) found a significant relationship between risk management committee size and financial performance, whereas Hazudin et al. (2015) found no relationship between ISO and financial performance of firms. Based on this, the study formulated its first hypothesis as thus: H03: International organization for standardization framework has no significant effect on the financial performance of listed deposit money banks in Nigeria. Committee of Sponsoring Organization (COSO) Framework Committee of Sponsoring Organizations (COSO) refers to a voluntary organization offering guidance on monitoring internal controls, the report indicates that this component is the foundation for all other components of internal control, providing both discipline and structure to the organization (Kinyua et al., 2015). The COSO framework identifies five main elements of a control system against which the review should take place. These include Control environment, Risk assessment, control activities, information and communication and monitoring. Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgment resulting from an assessment of whether the five components Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring are present and functioning (Kinyua et al., 2015).Researchers have examined the effect of COSO on financial performance. Some of these studies include (Akinleye & Kolawole, 2020; Jia & Bradbury, 2020) found a significant relationship between risk management committee size and financial performance, whereas Iswajuni et al. (2018) found no relationship between ISO and the financial performance of firms. Based on this, the study formulated its first hypothesis as thus: H04: The committee of sponsoring organization framework has no significant effect on financial performance of listed deposit money banks in Nigeria. Theoretical Review The research on risk management committees and business performance has been supported by a variety of theories. However, the agency theory served as the foundation for this investigation. Agency Theory Agency theory originated from the seminal work of Stephen Ross and Barry Mitnick in 1973, further developed and popularized by Michael, Jensen and William, Meckling in 1976. Agency Theory delves into the intricate relationship between principals, typically represented by shareholders and agents, such as managers or executives entrusted with making decisions on behalf of the principals (Tonye & Pabraebiowei, 2022). The theory posits that agents are expected to act in the best interests of the principals, reflecting the delegation of decision- making authority from the principal to the agent. Central to Agency Theory is the recognition of potential conflicts arising from information asymmetry among stakeholders, including management, debt holders, and shareholders (Agbaje et al., 2024). This disparity in information may lead to agency problems, where agents may prioritize their interests over those of the principals (Akinleye & Kolawole, 2020). The theory underscores the critical role of effective oversight mechanisms, such as the risk management committee, in governance Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 41 structures to mitigate agency issues and align incentives toward achieving organizational objectives. 3.0 Methodology The study adopted the correlational research design in conducting the investigation. Secondary data was collected from the audited annual reports of the 14 listed DMBs used in the study from 2016-2022, the study used the census population approach as all the 14 listed DMBs were used in the study. Generalized Least Square regression analysis was employed in the data analysis and the testing of the hypotheses of the study. Variable Measurement The variables used in this study and their measurements are presented in Table 3.1 as thus: Table 1 Variable Measurement Variable Acronym Measurement Sources Financial Performance FP Financial performance was measured as the proportion of profit before tax and total assets of the banks Oyedokun, (2019); Abubakar, et al., (2023) Risk Management Committee Independence RCI Measured as the proportion of independent members to total number of the committee members. Husaini & Saiful (2017); Ugwu et al. (2021). Risk Management Committee Size RCS Measured as the total number of directors on the risk management committee. Rashid et al. (2012); Kakanda et al. (2017) ISO 27001 Framework ISO Binary form by taking the value of 1 when a firm uses the ISO 27001 framework and 0 if otherwise. Wu et al. (2021); Podrecca et al. (2022) COSO Framework COSO Binary form by taking the value of 1 when a firm uses the COSO framework and 0 if otherwise Elessa (2016); González et al. (2020) Source: Authors’ Compilation from the Literatures Reviewed (2024). Model Specification The model specification of the study is presented below as follows: FP = ƒ(Enterprise risk committee). FPit = β0 + β1RCIit + β2RCSit + β3ISOit + β4COSOit + £it Where: FP = Financial Performance RCI = Risk Committee Independence RCS = Risk Committee Size ISO = International Standardization for Organization COSO = Committee of Sponsoring Organization Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 42 β0 = Constant β1 - β4 = coefficient of the variables of interest it = panel indicator. 4.0 Results Presentation and Discussion The findings from the data that were extracted and analyzed are covered in this section of the study. The section starts with descriptive statistics followed by correlation matrix, variance inflation factor (VIF), and regression result. Descriptive Statistics The independent and dependent variables that were employed in the study are explained by the descriptive statistics. Starting with the mean standard deviation, minimum and maximum. Table 2 Descriptive Statistics Variable Obs Mean Std.Dev Min Max FP 98 0.016 0.018 -0.091 0.070 RCI 98 0.242 0.146 0.000 0.600 RCS 98 6.469 1.884 3.000 11.00 ISO 98 0.367 0.485 0.000 1.000 COSO 98 0.214 0.412 0.000 1.000 Source: Author’s Computation from STATA Output, (2024) From Table 2 financial performance which is proxied by return on assets (ROA) has a mean value of 0.016 and a standard deviation of 0.018. This means that on average the performance of the listed DMBs in Nigeria stood at 1.60% with a deviation of 1.80% which signifies a moderate deviation from the mean value of ROA. The minimum and maximum value stood at - 0.091 and 0.070 respectively which shows that the minimum return on assets of the listed DMBs in Nigeria within the period of the study stood at -0.91% and a maximum return of 0.70%. Furthermore, Table 2 shows that risk committee independence has a mean value of 0.242 with a standard deviation of 0.146. This suggest that on average 2.42% members of the risk management committee are independence directors, with a variation of 1.46% which means that there is a low variation from the mean value of RCI of the DMBs within the period of the study. Also, the minimum and maximum values of RCI stood at 0.000 and 0.60 respectively which shows that some of the banks have no independent directors on their risk committee while the highest number of independent risk committee on the banks was 60%. Similarly, Table 2 shows that risk committee size has a mean value of 6.469 with a standard deviation of 1.884. This suggest that on average there are 6 directors on the risk committee of the listed DMBs in Nigeria within the period of the study. With a variation of 1.884 which means that there is a low variation from the mean value of RCS of the DMBs within the period of the study. Also, the minimum and maximum values of RCS stood at 3 and 11 respectively which shows that some of the banks have 3 directors on their risk committee while the highest number of risk committee of the listed DMBs stood at 11 members. Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 43 Also, Table 2 shows that ISO has a mean value of 0.367 and a standard deviation of 0.485. This means that on average, the listed DMBs in Nigeria applied 36.70% of ISO 27001 framework to risk management during the period of the study. The result also indicates that there is a high dispersion from the mean value of ISO 27001 framework reported within the period of the study. The minimum and maximum values of ISO 27001 stood at 0 and 1 respectively. Finally, Table 2 shows that COSO framework has a mean value of 0.214 and a standard deviation of 0.412. This means that on average, the listed DMBs in Nigeria applied 21.40% of COSO framework to risk management during the period of the study. The result also indicates that there is a high dispersion from the mean value of COSO framework reported within the period of the study. The minimum and maximum values of COSO stood at 0 and 1 respectively. Correlation Matrix The relationship between the independent variables and the dependent variables, as well as the relationship between the independent variables themselves, is explained by the correlation matrix. Table 3 Correlation Matrix Variable FP RCI RCS ISO COSO FP 1.000 RCI 0.203 1.000 RCS 0.005 0.010 1.000 ISO 0.146 0.075 0.250 1.000 COSO 0.364 0.237 0.022 0.039 1.000 Source: Author’s Computation from STATA Output, (2024). According to the correlation table, all the independent variables (RCI, RCS, ISO, and COSO) are positively correlated with performance (FP), which means they all move in the same direction with financial performance. Furthermore, the correlation matrix indicates that none of the study's variables are multi-collinear because all of their coefficients are below the threshold of 80% (Gujarati, 2004). VIF was also carried out to detect the presence of multi-collinearity among the variables. Multi-collinearity Multi-collinearity was used to dictate the presence of multi-collinearity among the independent variables of the study. Table 4: Variance Inflation Factor and Tolerance Value Variable VIF 1/VIF RCI 1.23 0.816 RCS 1.12 0.896 ISO 1.02 0.982 COSO 1.19 0.841 Mean 1.14 Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 44 Source: Author’s Computation from STATA Output, (2024) From Table 4, the tolerance and VIF were used as an advance measure to confirm the possible presence of multi-collinearity among the independent variables of the study, it was shown there is no multi-collinearity with the tolerance value and VIF concurrently below 1 and 10 respectively which signifies no presence of multi-collinearity among the variables (Gujarati, 2004). Diagnostic Tests To select the suitable model for the study, several diagnostic tests were conducted which include the multi-collinearity test using the VIF to find out if there is multi-collinearity among the variables, Hausman specification test to choose between fixed effect and random effect model which was not significant, hence the study further carried out Lagrange Multiplier test to choose between random effect and Ordinary Least Square (OLS) which favored the random effect model. Considering the fact the number of firms is more than the number of times the study made use of the Generalized Least Square (GLS) Model for the analysis. Presentation of Result The summary of the GLS robust regression result is presented in the Table below as follows: Table 5: Summary of OLS Robust Results FP Coef St.Err t-value p-value RCI 0.005 0.010 0.50 0.619 RCS 0.000 0.001 0.13 0.898 ISO27001 0.010 0.004 2.93 0.003 COSO 0.013 0.004 2.97 0.003 Cons 0.016 0.008 2.14 0.033 Prob> Chi2 0.001 No Obs 98 Panel Homoscedastic Autocorrelation no Autocorrelation Wald Chi2(4 19.83 Source: Author’s Computation from STATA Outputs, (2024) From Table 5, the Wald Chi2 is 19.83 and its associated p-value is 0.001 which by implication is statistically significant at 1%. This p-value less than 0.05 is small enough and it confirmed the fitness of the model for the study. Also, it was revealed from Table 4.7 that the heteroskedasticity problem in the panel random model and the autocorrelation were corrected with the GLS estimate. FP = 0.016 + 0.005RCI + 0.000RCS + 0.010ISO + 0.013COSO Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 45 The regression result shows that risk committee independence has a coefficient of 0.005, a t- value of 0.50 and a p-value of 0.619 which is not significant. This shows that risk management committee meetings do not affect the financial performance of listed DMBs in Nigeria. Hence, the study fails to reject the first hypothesis which stated that risk committee independence has no significant effect on the financial performance of listed DMBs in Nigeria. The result supports the findings of Abubakar, et al. (2018) Elamer and Benyazid (2018); Fali, et al. (2020), who found no relationship between risk committee independence and financial performance. However, it contradicts the findings of Aldhamari, et al., (2020); Yahaya and Yakubu (2022), who found a significant relationship between risk committee independence and financial performance. Similarly, the regression reveals that risk committee size has a coefficient of 0.000, a t-value of 0.13 and a p-value of 0.898 which is positive but statistically not significant. This suggests that risk committee size does not affect the financial performance of listed DMBs in Nigeria. Therefore, the study fails to reject the second hypothesis which states that risk committee size has no significant effect on the financial performance of listed DMBs in Nigeria. The findings of the study contradict the findings of Kakanda, et al., (2017); Efenyumi, and Okoye (2022), who found a significant relationship between risk committee size and financial performance, while the result confirms the findings of Ugwu et al. (2021); Yahaya and Yakubu (2022), who found no relationship between risk committee size and financial performance. Also, the regression result shows that the ISO framework has a coefficient of 0.010, a t-value of 2.93 and a p-value of 0.003 which is statistically significant at 1%. By implication this signifies that there is sufficient evidence beyond reasonable doubt that the ISO framework has a positive relationship with the financial performance of listed DMBs in Nigeria. This further means that if DMBs increase the use of the ISO framework in managing risk by 1% it will lead to a corresponding increase in the level of financial performance of listed DMBs in Nigeria by 1% every other thing being equal. In line with this result, the study rejected the third hypothesis which stated that ISO has no significant effect on the financial performance of listed DMBs in Nigeria. The result of the study confirms the findings of Bokhari and Manzoor (2022) who found a significant association between ISO and financial performance, while it is contrary to the studies of Hazudin, et al., (2015) who found no relationship between ISO and financial performance. Finally, Table 5 shows that the COSO framework has a coefficient of 0.013, a t-value of 2.97 and a p-value of 0.003 which is statistically significant at 1%. By implication this signifies that there is sufficient evidence beyond reasonable doubt that the COSO framework has a positive relationship with the financial performance of listed DMBs in Nigeria. This further means that if DMBs increase the use of the COSO framework in managing risk by 1% it will lead to a corresponding increase in the level of financial performance of listed DMBs in Nigeria by 1.30% holding every other thing constant. Therefore, the study rejected the fourth hypothesis which stated that COSO has no significant effect on the financial performance of listed DMBs in Nigeria. The result supports the works of Akinleye and Kolawole (2022); Hamour, et al., (2021), who established significant relationship between the COSO framework and financial performance. However, it contradicts the findings of Iswajuni et al. (2018), who found no relationship between COSO and financial performance. Gusau Journal of Accounting and Finance, Vol.6, Issue 2, April, 2025 46 5.0 Conclusions and Recommendations In line with the finding, the study concluded that risk committee independence and risk committee size are not major determinants of the financial performance of the listed DMBs in Nigeria. However, ISO and COSO have significance effect on the financial performance of listed DMBs in Nigeria. This means that these variables are the major determinants of financial performance within the period of the study with p-values of 0.003 and 0.003 respectively. Because ISO helps organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment. Furthermore, The COSO framework identifies five main elements of a control system. These include Control environment, Risk assessment, control activities, information and communication and monitoring. Management could use these to determine whether a particular internal control system is effective is a judgment resulting from an assessment of whether the five components improve the financial performance of the banks. Therefore, the study recommended that the management of the listed DMBs in Nigeria increase the application of ISO framework to help in the identification of opportunities and threats in order to enhance the financial performance of the banks. Furthermore, the study recommended that the management increase the use of COSO framework in order to promote the financial performance of the listed DMBs in Nigeria. These recommendations were as a result of the positive and significant effect of these variables on the financial performance of the listed DMBs in Nigeria within the period of the study. The study has theoretical implication as it fills the gap in literature by examining the effect of risk management committee on the financial performance of listed DMBs in Nigeria. Also, the study provides information on the effect of management committee on the financial performance which will provide a guide for future researchers in this area. Furthermore, the study has practical implication as the result of the study will assist management to implement policies that will ensure the promotion of the financial performance of listed DMBs in Nigeria. The study was limited to only the listed DMBs in Nigeria, as such the results of the study cannot be generalized to other sectors most especially the manufacturing sector. Also, the study was limited to just four variables: risk management committee size, risk management independence, ISO and COSO framework as the only determinants of the financial performance of listed DMBs in Nigeria. Finally, future researchers should replicate this study to the entire listed manufacturing firms in Nigeria to ensure more generalizability of the findings of the study. References Abdullahi, S. R., Kwaru, S. M., & Karim, D. I. (2023). Capital structure and financial performance of listed consumer goods firms in Nigeria. Nigerian Journal of Management Sciences, 24(2b), 55-64. Abubakar, A. 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