Risk Management Practices among Selected State Governments in Southwestern Nigeria

  • Rafiu Oyesola Salawu
  • Olusegun Timothy Odesola
  • Aina-Obe Shamsuddin Bolatito
  • Oluwatomi Aderoju Adejumo
Keywords: risk management, government sectors, risk of fraud, Southwest, Nigeria


This study examines the level of risk management practices among selected state governments in southwestern Nigeria. The objective of this research is to assess the current risk management practices adopted by these state governments and identify areas for improvement. Descriptive survey research design was adopted with the use of primary data. The population of the study comprises all staff of the office of the Accountant General and Auditor General of Oyo, Ondo, and Lagos States. Four hundred and fifty respondents were purposively sampled from 150 accounting officers, auditors, and directors in each state and 414 copies of the questionnaire were returned and analysed using descriptive statistics such as frequency, percentages, median, and mean. The results showed that risk management was moderately implemented (46.1%) among the selected state governments in southwestern Nigeria. This research contributes to the existing literature on risk management practices in public sector organizations and offers valuable insights for policymakers and practitioners seeking to strengthen risk management frameworks. The study concluded that the level of risk management practices is moderate existence in the selected state governments. It was, therefore, recommended that implementation of the risk management controls should be considered to minimise misappropriations and waste of resources, financial irregularities, and fraud and also increase growth in the economic activities of the state governments and government sectors.


Adeleke, A. A., & Olaiya, O. O. (2017). Risk Management Practices in Southwest Nigerian States: A Case Study of Lagos State Government. International Journal of Social Sciences and Humanities Reviews, 7(4), 45-58.
Adesola, W., & Adejumo, K. (2019). Risk Management Practices in Selected Southwestern Nigerian State Governments: An Empirical Investigation. European Journal of Business and Management Research, 4(5), 15-25.
Ahmeti, R., & Vladi, B. (2017). Risk management in public sector: A literature review. European Journal of Multidisciplinary Studies, 2(5), 190-196.
Approaches, D., & Risk, F. (2021). Risk management to safeguard integrity - OECD. https://www.oecd.org/governance/ethics/risk-management-integrity.htm
Apriyanti, W. N., & Rais, K. I. (2020). Fraud Risk Management in Construction Company: A Case Study in Indonesia. IBIMA Publishing Journal of Southeast Asian Research, 2020, 2166– 0832.
Asare, T. (2009). Internal Auditing in Public Sector: Promoting Good Governance and Performance Improvement. International Journal on Governmental Financial Management, 3(1), 15-27.
Asomaning, A. O. (2019). Assessing the Effectiveness of Fraud Risk Management Practices in the Banking Sector of Ghana. International Journal of Economics and Management, 12(2), 32–41.
Boateng, A. A., Boateng, G. O., & Acquah, H. (2014). A literature review of fraud risk management in micro finance institutions in Ghana. Research Journal of Finance and Accounting, 5(11), 42-51.
Bracci, E., Tallaki, M., Gobbo, G., & Papi, L. (2021). Risk management in the public sector: a structured literature review. International Journal of Public Sector Management, 34(2), 205–223.
COSO. (2017). Enterprise Risk Management. Integrating with strategy and performance.
Committee of Sponsoring Organizations of the Treadway Commission, June, 16.
Fakunmoju, S. K., Fasola, I. O., & Fashagba, P. F. (2021). Effect of Fraud Management Practices on Non- Financial Performance of Selected Deposit Money Banks in Lagos State, Nigeria. Journal of Accounting and Management, 11(1), 145–153.
Gikiri, W. L. (2012). An Investigation of the Effect of Fraud Risk Management Practices on Fraud Risk in Commercial Banks in Kenya. International Journal of Research in Finance and Marketing, 78(78), 2020–2028.
Githecha, D.K. (2013). The effect of fraud risk management on the financial performance of commercial banks in Kenya. MSC Project, University of Nairobi.
Hess, M. F., & Cottrell, J. H. (2016). Fraud risk management: A small business perspective. Business Horizons, 59(1), 13–18.
Jenkins, K., Sovacool, B. K., Mouter, N., Hacking, N., Burns, M. K., & McCauley, D. (2021). The methodologies, geographies, and technologies of energy justice: a systematic and comprehensive review. Environmental Research Letters, 16(4), 043009. https://doi.org/10.1088/1748-9326/abd78c
Kapuscinska, K., & Matejun, M. (2014). Risk Management in Public Sector Organizations: A Case Study. International Journal of Business and Management Studies, 3(3), 129–143.
Kong, Y., Lartey, P. Y., Bah, F. B. M., & Biswas, N. B. (2018). The Value of Public Sector Risk Management: An Empirical Assessment of Ghana. Administrative Sciences, 8(3), 1-18.
Kuria and Moronge (2013). Effect of fraud management practices on the growth of insurance companies in Kenya. International Journal of Innovative Social & Science Education Research, 2(1), 26-39.
Lim, C. Y., Woods, M., Humphrey, C., & Seow, J. L. (2017). The paradoxes of risk management in the banking sector. The British Accounting Review, 49(1), 75-90.
Marzuki, M.M., Majid, N.A., W. Z., Azis, N. K., Rosman, R., & Abdulatiff, N. K. (2020). Fraud Risk Management Model: A Content Analysis Approach. Journal of Asian Finance, Economics and Business, 7(10), 717–728.
Mutuku, C. (2016). The effect of risk management on the financial performance of commercial banks in Kenya (Doctoral dissertation, University of Nairobi).
Nakkungu, M. A. S., & Ssendagi, M. (2019). Financial Management Practices and Fraud Risk
Management of Commercial Banks in Kampala. International Journal of Research and Innovation in Social Science, III(X), 285–328.
Nigerian Bureau of Statistics, N. B. of S. (2018). Crime Statistics: Reported Offences by Type and State (Issue June).
Nugraha, S., & Susanto, E. (2017). The Role of the Government Internal Auditor in Fraud Risk Management: Advances in Economics, Business and Management Research (AEBMR). In International Conference on Administrative Science (ICAS 2017), 43, 200–203.
Ohando, R. O. (2015). The Relationship between Financial Structure and Financial Performance of Microfinance Banks in Kenya. Journal of Economics and Finance, 42(10), 41–50.
Oladapo, O.A., & Adeyemi, A.O. (2020). Evaluating the Effectiveness of Risk Management Frameworks in Selected Southwestern Nigerian State Governments. Journal of Public Finance and Budgeting (Print).
Oyewole, A. (2018). Risk Management in Nigerian State Governments: Challenges and Strategies. Journal of Public Administration and Policy Research, 10(6), 56-67.
Pearson, D. (2012). Fraud Prevention Strategies in Local Government. October.
Salawu, M. K., Oyewobi, I. A., & Adejumo, O. A. (2023). Internal Control System, Risk Management Practice and Fraud Prevention Among Selected State Governments in Southwestern Nigeria. TWIST, 18(4), 123-134. https://doi.org/10.5281/zenodo.10049652#35
Soyemi, K. A., Ogunleye, J. O., & Ashogbon, F. O. (2014). Risk management practices and financial performance: evidence from the Nigerian deposit money banks (DMBs). The Business and Management Review, 4(4), 345–354.
Turner, J. R., & Cochrane, R. (1993). Goals-and-methods matrix: coping with projects with ill defined goals and/or methods of achieving them. International Journal of Project Management, 11(2), 93–102. https://doi.org/10.1016/0263-7863(93)90017-h
Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5, 297-323.
Udeh, S. N., & Nwadialor, E. O. (2016). Evaluation of the effectiveness of internal audit in the Nigerian public sector. European Journal of Business, Economics and Accountancy, 4(3), 44-58.
Williams, J. (2017). Rigorous risk management is a must-have for public sector organisations. AB Magazine, Mar, 7–10.
How to Cite
Salawu, R. O., Odesola, O. T., Bolatito, A.-O. S., & Adejumo, O. A. (2024). Risk Management Practices among Selected State Governments in Southwestern Nigeria. European Journal of Science, Innovation and Technology, 4(1), 346-357. Retrieved from https://ejsit-journal.com/index.php/ejsit/article/view/387