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.
