Risk management practices and performance of non-financial firms in Nigeria

Purpose of the Research: This study investigates the effect of risk management practices on the financial performance of quoted non-financial firms in Nigeria. The study analyses the effect of meeting, gender diversity, independence and size of risk management committee on return on assets. Design/methodology: A sample of quoted 40 non-financial firms on the Nigerian Stock Exchange (NGX) cutting across several subsectors and with audited annual reports from 2012 to 2022 was selected. Results/findings: The findings demonstrated a significant negative effect of risk management committee size on financial performance. Risk committee meeting, independence and gender diversity showed an insignificant positive effect on financial performance. Firm age has a significant positive effect on financial performance. Practical implications and conclusions: These findings provide the board with insights on maintaining an optimal size for the risk management committee to enhance decision making and oversight, ultimately improving financial performance. The study highlights the importance of regular committee meetings to effectively manage emerging risks in today’s dynamic business climate. Also, it informs shareholders about the necessary level of independence for the risk management committee to significantly boost financial performance.