Impact of Recession on Risk Management Systems in Nigerian Banks

Filed in Articles by on June 26, 2022

Impact of Recession on Risk Management Systems in Nigerian Banks.

ABSTRACT

One of the major consequences of recession is a general slowdown in economic activity over a period of time.

It therefore beholds and organization to set up a robust Risk management to assist in consolidating property values, claims, policy and exposure information and provide the tracking and managementreporting capabilities to enable the organization monitor and control its overall cost of risk.

Unfortunately, unavoidable risks, the category to which recession belongs, is mostly ignored. This study therefore is an attempt at assessing the impact of recession on risk management systems and to appraise the effectiveness of the banks general risk management system.

The study takes the form of a survey research, with questionnaires and interviews being the dominant source of data collected.  Charts and tables have been extensively employed in presenting available data while the chi-square test was used in testing the stated hypothesis.

The analysis of data shows that there is a significant relationship between the global financial crisis and the risk management systems of Nigerian banks.

TABLE OF CONTENT

Title Page – – – – – – – – – i

Certification – – – – – – – – – ii

Dedication – – – – – – – – – iii

Declaration – – – – – – – – – iv

Acknowledgement- – – – – – – – v

Abstract – – – – – – – – – vi

Table of content – – – – – – – – vii

CHAPTER ONE – Introduction

1.1 Background to the Study – – – – – – 1

1.2 Statement of the Problem – – – – – 3

1.3 Research Questions – – – – – – 4

1.4 Objectives of the Study – – – – – – 5

1.5 Statement of Hypothesis – – – – – – 5

1.6 Significance of the Study – – – – – – 6

1.7 Scope of the Study – – – – – – 7

1.8 Limitations of the Study – – – – – – 7

1.9 Plan of the Study – – – – – – – 8

1.10 Definition of Terms – – – – – – 9

CHAPTER TWO – Literature Review

2.1 Introduction – – – – – – – 11

2.2 Concept of Risk Management – – – – – 11

2.3 CBN Credit Risk Management System – – – – 16

2.4 Setting up Risk Management System – – – – 20

2.4.1 Strategic Risk – – – – – – – 22

2.4.2 Operational Risk – – – – – – – 24

2.4.3 Innovation Risk – – – – – – – 27

2.5 Origin of Recession – – – – – – 29

2.6 Theory of Recession – – – – – – 33

CHAPTER THREE – Research Methodology

3.1 Introduction – – – – – – – 41

3.2 Method of Research – – – – – – 41

3.3 Source of Data – – – – – – – 43

3.4 Population and Sampling Techniques – – – – 43

3.5 Tools of Data Analysis – – – – – – 46

CHAPTER FOUR – Presentation and Analysis of Data

4.1 Introduction – – – – – – – 48

4.2 Data Presentation – – – – – – – 48

4.3 Data Analysis – – – – – – – 55

4.4 Presentation of other Findings – – – – – 61

CHAPTER FIVE – Summary, Conclusion and Recommendation

5.1 Summary – – – – – – – – 65

5.2 Conclusion – – – – – – – – 66

5.3 Recommendations – – – – – – 67

Bibliography – – – – – – – – 70

Appendix – – – – – – – – – 72

INTRODUCTION

Recession in its general form has been described as a business cycle contraction, bringing about a general slowdown in economic activity over a period of time.

During this period, several macroeconomic indicators vary in a similar way and there is usually a high risk of bankruptcy (Julius, 2008).

The impact of recession on a business varies and is dependent on the nature of business especially as regards to its relationship with the macroeconomic indicators which mostly reflect the existence of recession.

Most mainstream economists believe that recessions are caused by inadequate aggregate demand in the economy, and favour the use of expansionary macroeconomic policy during recessions.

Strategies favoured for moving an economy out of a recession vary depending on which economic school the policymakers follow.

BIBLIOGRAPHY

Christopher A. (2010), Setting up a Risk Management System, Articles Alley.com
Dorfman S. (2007). Introduction to Risk Management and Insurance, Prentice Hall, Englewood Cliffs, N.J
Dornbusch R. and Fischer S. (1989), Macroeconomics, McGraw Hill, New York
Hubbard, Douglas (2009). The Failure of Risk Management: Why It’s Broken and How to Fix It. John Wiley & Sons.
ISO/DIS (2009). Risk management Principles and guidelines on implementation,International Organization for Standardization
John J. and Larry E. (2004), Enterprise Risk Management Integrated Framework, Treadway Commission
Microsoft Corporation. 2007. Recession definition. Encarta World English Dictionary

CSN Team.

Comments are closed.

Hey Hi

Don't miss this opportunity

Enter Your Details