OPERATIONAL RISK MANAGEMENT AND PERFORMANCE OF SELECTED COMMERCIAL BANKS IN ANAMBRA STATE, NIGERIA

Abstract

The study examined the effect of system and technology risk on the organizational performance of selected commercial banks in Anambra State, Nigeria. The population of the study was three hundred and twenty (320) employees of the selected banks in Anambra.
300 copies of the questionnaire were returned and certified fit for the study. Census method was employed because of the manageable size of the population. Descriptive survey design was employed in the collection of data which were analyzed using correlation analysis, and the hypotheses were tested at a 5% level of significance A five-point Likert structured questionnaire was deployed in eliciting data from the respondents. The Cronbach Alpha was used to determine the reliability of the instrument. The Cronbach Alpha value of 0.637 and 0.694 respectively were obtained. The study employed Regression method to determine
the effect of operational risk management and performance of selected commercial banks understudy. System and technology risk has a t-statistics of -3.014 and a probability value of 0.003 which is statistically significant. Thus, we reject the null hypothesis and accept the alternate hypothesis which states that system and technology risk has a significant effect on organizational performance of selected commercial banks in Anambra State, Nigeria. Therefore, the study recommended that, the management of banks should institute measures on system access and navigation, as well limit system abuse by staff and bank customers. This could be made manifest by establishing data protocols with authorized access to information on the system.