TOPIC
at banks create operational risk losses. This study investigated internal control activities and
risk assessment on operational risk of quoted banks in Nigeria. 16 quoted banks from 2013-
2020 were studied based on the 2012 banking reform on corporate governance by the then
CBN governor Sanusi Lamido Sanusi’s “Project Alpha Initiative” (PAI).The analysis carried out
included pooled OLS regression, fixed and random effect and Hausman tests utilizing E-View
9 software. The findings showed that internal control activities has a negative correlation
and internal control risk assessment has positive significant effect on operational risk. The
researchers therefore recommend that internal check of staff at banks should be sustained
as there was an inverse relationship between internal check and operational risk at banks.
Penalties should be spelt out for banking staff who are non-compliant with bank policies and
guidelines especially in the area of breech in software codes. Banks should ensure that
internal control unit personnel are qualified and adequately trained especially IT staff.
Keywords: Internal Control, Control Activities, Risk Assessment and Operational Risk
Download: FULL TEXT PDF
PUBLISHED
2023-01-11
HOW TO CITE
Ozuomba, Chidinma N., Ibeaja, Uzoma Friday and Nosiri, Hilary Ukachukwu (2023). Internal Control Activities and Risk Assessment Effect on the Operations of Quoted Banks in the Nigerian Stock Exchange. IDOSR JOURNAL OF ARTS AND MANAGEMENT 8(1):27-39. https://doi.org/10.59298/IDOSR/2023/12.1.5893