CORPORATE RISK MANAGEMENT AND FINANCIAL STABILITY: THE ROLE OF BOARD STRUCTURE, RISK COMMITTEES, AND LEVERAGE IN NIGERIAN BANKS

With the growing emphasis on a holistic approach to risk management, corporate risk management has become an essential area of inquiry in modern financial institutions. This study examines the effect of corporate risk management on financial stability in the Nigerian banking sector. Specifically, the study focuses on listed commercial banks in Nigeria over a fifteen year period from 2010 to 2024.An hypotheses testing-expost facto research design was adopted, utilizing panel data obtained from the annual reports and official websites of 13 listed banks. A total of 195 firm-year observations were analyzed after data cleaning and preparation. The study employed multivariate regression analysis using EViews 12 to test the formulated hypotheses. The findings reveal an intriguing insight into the relationship between corporate risk management and financial stability such as board independence (β=-28.42, p <0.05), chief risk officer (β=-3.56, p < 0.05) and financial leverage (β=-36.50, p < 0.05) have negative but statistically significant effects on financial distress .Risk committee existence (β=2.45, p < 0.05) revealed a positive and significant influence on financial stability. The results suggest that while traditional governance mechanisms such as board size and independence remain relevant for aligning managerial decisions, effective risk management structures and prudent leverage management play a more critical role in enhancing financial stability. The study therefore recommends that bank managers should institutionalize risk awareness by fostering transparency, accountability, and forward looking risk assessment practices, ensuring that risk management frameworks are effectively translated into operational decision making.