Effect of Risk Management on the Financial Performance of Listed Deposit Money Banks in Nigeria and Ghana

Abstract

This study examined how risk management strategies influence the financial performance of listed deposit money banks in Nigeria and Ghana. It focused on whistleblowing policies, risk committee size, and committee independence as governance tools shaping profitability and firm value. A quantitative, longitudinal design was adopted, using secondary data from 19 listed banks (2013– 2022). Panel regression and correlations analysis were used to analyzed data. The findings shows that whistleblowing adoption and committee size were higher in Nigeria, while Ghanaian banks showed greater committee independence. Whistleblowing significantly improved firm value in Nigeria (β = 1.105, p = 0.013). In Ghana, committee size strongly influenced ROA (β = 0.196, p = 0.001) and Tobin’s Q (β = 0.127, p = 0.008). Independence had little or negative impact in both countries. The study concluded that risk governance affects performance differently across settings: whistleblowing drives value in Nigeria, whereas committee size supports profitability in Ghana. Independence alone is insufficient without engagement and clear oversight roles. It is recommended that: Nigeria should enhance whistleblowing systems and refocus committee work on risk evaluation. Ghana should sustain well-structured, skilled committees and strengthen reporting on how their oversight improves financial outcomes.