FINANCIAL RISK MANAGEMENT ON COOPERATIVE CREDIT SOCIETY’S WEALTH MAXIMIZATION IN NIGERIA: MODERATING ROLE OF RISK COMMITTEE SIZE

ABSTRACT

Risks are fundamentally a part of business operational models. They cannot be completely eliminated and, if not efficiently managed it can result to loss of value. Wealth creation can only take place when the prevailing financial risks in any business are identified and carefully handled. In line with this, this research was carried out to investigate the effect of financial risk on cooperative credit societies using risk committee as a moderating factor. A survey research design and stratifies random sampling techniques were used to select the sample size. We adopted the primary method of data collection through the help of a well-structured questionnaire. 184 questionnaires were distributed and 175 were returned. The demography section of the question was analysed with frequencies and percentages while the multiple regression analysis was used to analyse the hypotheses. Our findings showed that credit, liquidity and operational risk had a positive and significant effect on the wealth maximization of cooperative credit societies while market risk had a negative and significant effect. We concluded that all financial risk managements were vital in carrying out any business and recommended that policies should be put in place to regulate financial risks in order to achieve better wealth maximization.