Actuarial Science and Insurance -Scholarly Publications

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Browsing Actuarial Science and Insurance -Scholarly Publications by Author "Fadun, O. S. and Oye, D."

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    Open Access
    Impacts of operational risk management on financial performance: A case study of commercial banks in Nigeria.
    (2020) Fadun, O. S. and Oye, D.
    Increase in losses borne by banks as a result of inadequate operational risk management practices and the adverse impact on banks’ financial performance has been a major concern to bank management and regulators. Hence, the purpose of this study is to analyse the impact of operational risk management practices on the financial performance of commercial banks in Nigeria. 10-years (2008 - 2017) secondary data extracted from audited financial statements of selected commercial banks in Nigeria was used for the study. The data was analysed using the Linear Multiple Regression Model. The results showed that there is a positive relationship between operational risk management and the financial performance of banks. The findings revealed that sound operational risk management practices impact positively on the financial performance of banks. We, therefore, recommend that banks’ management should deploy adequate resources towards understanding operational risk to ensure sound operational risk management and improved financial performance of banks. The study is based on a limited scope; therefore, a larger sample size may make for an interesting research in the future.
  • Item
    Open Access
    The analysis of drivers of operational risks in Nigerian commercial banks.
    (2021) Fadun, O. S. and Oye, D.
    Despite the institutionalization of operational risk management in banks and the strict supervision of bank regulators, operational risk events are still on the increase. It is becoming evident to banks that there is a need to identify the drivers of this risk and nib it at the root to reduce the probability of recurrence. Hence, this study examined the drivers of operational risks in Nigerian commercial banks and the extent to which each driver contributes to operational risk. To achieve the study’s objectives, primary data were collected from the Operational Risk Management Desks of six (6) sampled commercial banks and analysed using SPSS and Microsoft Excel. The result showed that Internal Process, IT system and Quality of Risk Officers are determinants of operational losses in banks. Internal process was however indicated as having the most impact. The study concluded that Internal Process is the major driver of operational risk in Nigerian Commercial banks. The researcher therefore recommends that bank management must have defined procedures for core activities and prioritize regular review of their critical processes to reduce operational risk events and the associated costs.