Effect Of Enterprise Risk Management On Financial Performance Of Listed Consumer Goods Firms In Nigeria

Abstract very step taken in life involves risk; Life itself is a risk. Risk occurs in the everyday life of humans, as well as companies. Consequently, it is imperative to identify source of risk and to prevent them in order to lessen their threats. Thus, the study examined the effect of enterprise risk management on the performance of listed consumer goods firms in Nigeria. Longitudinal panel research design was adopted in this study. The population of the study consists of all the twenty-one (21) listed consumer goods firms on the Nigeria Exchange Group as at 31st December 2021. In order to arrive at the sample size, the judgmental sampling technique was employed. eleven (11) firms meet the requirement to form the sample size of the study base on the availability of data. The study ranges from 2012 to 2021 a period of ten years. The secondary data adopted in this study were gathered from financial statements published on the Nigeria Exchange Group and the individual company’s financial statements. The study employed regression analysis technique with the help of STATA version 13.0. The study found that market risk has positive and insignificant effect on financial performance of listed consumer goods firm in Nigeria while and liquidity risk and firm size have negative and insignificant effect on financial performance. The study concludes that enterprise risk management indicators do not have significant effect on financial performance indicator of listed consumer goods firms in Nigeria. The study therefore, recommends that consumer goods firms should establish the required cash in each product segment and maintain the optional level which will help in reducing the cash balance level and increase their customer deposit base through making the product accessible to more customers especially the low-income earners