Audit Committee Effectiveness, Risk Management and Financial Performance of Nigerian Listed Deposit Money Banks

This study examined the moderating effect of audit committee financial literacy on the relationship between risk management and financial performance of listed deposit money banks in Nigeria adopting ex-post facto research design to define the structure and strategy of the study, the target population were listed deposit money banks (DMBs) in Nigeria as at 31st December, 2020, which were 19in number. 11 were selected as sample size based on the complete published annual reports and account submitted to the Securities and Exchange Commission for the period of 5 years (2016-2020). The data obtained from annual reports and account of the banks, were analyzed using both descriptive and inferential statistics. The result shows that liquidity risk management, capital adequacy risk management, and operational risk management have positive and significant effect on return on assets, while credit risk management have negative and insignificant effect on return on assets of the banks. However, audit committee financial literacy positively and significantly moderates the relationship between risk management and financial performance of the banks. Therefore, the study recommended that, the board should increase the number of financial literate members on audit committee to assist in identifying risk exposure with a view of monitoring and controlling them.