EXAMINATION OF RISK MANAGEMENT IN THE BANKING I NDUSTRY: (A CASE STUDY OF FIRST BANK OF NIGERIA)

Abstract

he banking industry as a financial institution is indispensable machinery and plays a paramount role in the process of economi c growth and development. This a cknowledgement is reinforced by contemporary conceptualization of mobilizing resources from surplus unit s and channeling some of it to def icit units . The growing dynamic of business environment therefore has created ambivalences necessitating control and coordination most especially in the financial institutions. This ambivalence has parallel movement with risk organization today conduct business unde r the condition of uncertainty, thus the anal ysis of this uncertainty entail processes to measure the degree of risk involved. To this end, it would be impossible to understand fully the centre point of this study without looking at the meaning of risk and examination of risk management. Risk is defined as the chance of having a loss due to occurrence of an event. The risk is always associated with the loss aspects since the world itself has the association of danger of loss. The definition can be ''probability of the occurrence of an event resulting in loss/gain.