TABLE OF CONTENTS

Title page……………………………………………………..ii

Declaration………………………………………………….iii Certification………………………………………………….iv

Dedication…………..………………………………………..v

Acknowledgements…………………………………………vi

Table of contents………………………………………….viii

Abstract………………………………………………………xi

CHAPTER ONE: INTRODUCTION

1.1              Background of the Study………………………….1

1.2              Statement of the Research Problems……………3

1.3              Objectives of the Study……………………………..4

1.4              Scope of Study………………………………………..5

1.5              Significant of Study………………………………….6

1.6              Statement of Research Hypothesis………………7

1.7              Limitation of Study………………………………….8

1.8              Corporate Profile of Union Bank…………………9

1.9              Definition of Terms…………………………………12

CHAPTER TWO: LITERATURE REVIEW

2.1              Introduction…………………………………………16

2.2              Types of Risk………………………………………..27

2.3              Risk from Mismanagement………………………31

2.4              Risk Analysis and Evaluation……………………35

2.5              Measurement of the Risk…………………………36

2.6              Solvency and Regulatory control……………….44

References………………………………………………….48

CHAPTER THREE

3.1              Introduction…………………………………………49

3.2              Research Design……………………………………49

3.3              Sampling Procedures/Sampling Size………….51

3.4              Data Analysis………………………………………..56

References…………………………………………………..59

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1              Introduction…………………………………………60

4.2              Questionnaire Analysis……………………………60

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

5.1              Introduction…………………………………………81

5.2              Recommendation…………………………………..82

5.3              Conclusion…………………………………………..84

Bibliography………………………………………………..87

Appendix…………………………………………………….88

ABSTRACT

            Customers of banks expect their bankers to provide them with loans and advances to makeup any short fall in their funds requirement for transactional motive.

            This project is sub-divided into five chapters, which focuses on Risk Management in Nigeria Banking Institution.

            Questionnaire were distributed to collect the relevant information from the respondent, percentage and chi-square analysis were used and the hypothesis testing was carried out, it was found that there is risk in bank which enable me to conclude that there is risk in bank lending and because the rules of lending are not often followed when granting credit facilities to their customers.

CHAPTER ONE

                    INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The purpose of this project is to highlight the instability, uncertainty, inaccurate planning and budgeting process and loss of effective control management function in the financial institutions, occasioned by the dynamic macro economic variable in Nigeria within the last decade.

The economic variables were introduced apparently to achieve or obtain a level of economics sanity in the country, under different names like structural adjustment programme, exchange control deregulation and price control.

Consequently, the management of policy issues in financial institution has become not only volatile but unpredictably difficult. It has become toughly risky for those institutions to carry on their normal functions.

The banking industries are susceptible to all forms of risk. It has an ageing long history in the overall operation of all banks.

Risk is a commonly used word. The Oxford learning dictionary, defines risk as the possibility of meeting danger or suffering harm or loss. All human and corporate under taking have certain element of risk to avert risk, forward looking in management must show sufficient interest in the management and control of these Operations in the bank and monitor the possible impact these may have on the banking performance. This study attempts to emphasize this point in bank management.