ASSESSMENT OF RISK MANAGEMENT ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA (A CASE STUDY OF UBA BANK GUSAU BRANCH, ZAMFARA STATE)

Risk management plays a crucial role in ensuring the stability and performance of financial institutions, particularly Deposit Money Banks (DMBs) in Nigeria. This study examines the impact of risk management on the performance of UBA Plc, Gusau. The research focuses on key risks such as credit risk, liquidity risk, operational risk, and market risk, and how these are managed to enhance the bank’s overall performance. Using a case study approach, both primary and secondary data were collected through questionnaires, interviews, and financial reports from UBA Plc, Gusau, covering the period from 2018 to 2023. The study employs descriptive and inferential statistical techniques to analyze the data and test the research hypotheses. Findings reveal that effective credit, liquidity, operational, and market risk management strategies positively influence the bank's profitability, operational efficiency, and overall financial performance. The study highlights that UBA Plc has implemented sound risk management practices, although some areas, particularly in liquidity risk management, need improvement to maintain sustainable performance. The research concludes that a well-structured risk management framework is essential for mitigating potential losses and ensuring the long-term success of Deposit Money Banks. Recommendations include the adoption of more robust risk management tools, enhanced staff training on risk management practices, and improved regulatory compliance to further strengthen the bank’s risk control mechanisms. This study contributes to the existing literature on risk management in the Nigerian banking sector and offers practical insights for UBA Plc and other banks in enhancing their risk management practices for better performance.