0704-883-0675     |      dataprojectng@gmail.com

Quantitative Analysis of IFRS Compliance and Operational Risk in Nigeria

  • Project Research
  • 1-5 Chapters
  • Abstract : Available
  • Table of Content: Available
  • Reference Style:
  • Recommended for :
  • NGN 5000

 

Background of the Study
Operational risk, defined as the risk of loss resulting from inadequate or failed internal processes, systems, or external events, is a significant concern for financial institutions globally. In Nigeria, the adoption of International Financial Reporting Standards (IFRS) has brought about a greater emphasis on transparency, accuracy, and consistency in financial reporting, which directly impacts how operational risks are identified, reported, and managed. As Nigerian firms and financial institutions increasingly comply with IFRS, the question arises as to how this compliance influences operational risk management.
IFRS, with its focus on fair value accounting, comprehensive disclosures, and internal control systems, may have significant implications for how operational risks are managed and reported in Nigeria. However, while the relationship between IFRS compliance and risk management has been explored in other contexts, limited research has been done in Nigeria. This study seeks to quantitatively analyze the relationship between IFRS compliance and operational risk in Nigerian firms and financial institutions, assessing how IFRS adoption affects operational risk exposure and the strategies employed to mitigate such risks.

Statement of the Problem
Despite the widespread adoption of IFRS in Nigeria, there is a lack of empirical evidence on how IFRS compliance impacts operational risk management. Given the complex and evolving nature of operational risks, it is critical to investigate how IFRS adoption influences these risks, especially within Nigerian firms, where regulatory, economic, and institutional challenges are unique. This study aims to fill this gap by providing a quantitative analysis of the relationship between IFRS compliance and operational risk in Nigeria.

Aim and Objectives of the Study
The aim of this study is to quantitatively explore the relationship between IFRS compliance and operational risk in Nigeria. The specific objectives are:

  1. To assess the level of IFRS compliance among Nigerian firms, especially in the financial sector.

  2. To examine the impact of IFRS compliance on the identification, assessment, and management of operational risk in Nigerian firms.

  3. To analyze whether IFRS compliance has a measurable effect on the operational risk exposure and risk mitigation strategies of Nigerian firms.

Research Questions

  1. What is the level of IFRS compliance among Nigerian firms, particularly in the financial sector?

  2. How does IFRS compliance affect the identification, assessment, and management of operational risk in Nigerian firms?

  3. Does IFRS compliance influence operational risk exposure and risk mitigation strategies in Nigerian firms?

Research Hypotheses

  1. There is a significant relationship between IFRS compliance and operational risk management in Nigerian firms.

  2. IFRS compliance positively affects the identification and assessment of operational risks in Nigerian firms.

  3. IFRS compliance significantly reduces operational risk exposure and enhances risk mitigation strategies in Nigerian firms.

Significance of the Study
This study will provide valuable insights into how IFRS compliance influences operational risk management in Nigerian firms, particularly in the financial sector. The findings will help guide financial institutions, regulators, and policymakers in developing strategies for improving operational risk management in line with international standards.

Scope and Limitation of the Study
The study focuses on Nigerian firms, particularly financial institutions, and their compliance with IFRS between 2012 and 2025. Limitations include potential variations in the quality of compliance across different sectors and difficulty accessing operational risk data from firms.

Definition of Terms

  • Operational Risk: The risk of loss due to inadequate or failed internal processes, systems, or external events.

  • IFRS Compliance: The adherence to International Financial Reporting Standards in financial reporting and risk management practices.

  • Risk Mitigation Strategies: Actions and procedures implemented to reduce or manage risks effectively.





Related Project Materials

CONFLICT MANAGEMENT IN BUSINESS ORGANIZATION

BACKGROUND OF THE STUDY

The historical background of conflict in organization can be seen as far back a...

Read more
APPLICATION OF NEW MEDIA IN JOURNALISM PRACTICE

ABSTRACT

The aim of this study was to determine application of new media in Radio Niger, Minna. The study adopted survey...

Read more
An Investigation of Barriers to Antenatal Care Attendance Among Pregnant Women in Yobe State Hospitals

Background of the Study

Antenatal care (ANC) is essential for ensuring the health of both mother and...

Read more
PARENTAL INVOLVEMENT ON STUDENTS’ ACADEMIC ACTIVITIES IN SELECTED SECONDARY SCHOOLS

ABSTRACT

This study was carried out to examine parental involvement on students academic activities in...

Read more
The effect of government-sponsored training programs on rural agricultural finance: a case study of Co-operative Bank of Nigeria

Background of the Study
Government-sponsored training programs are increasingly recognized as vital instruments for enhanc...

Read more
An Assessment of Nurses' Awareness and Response to Emerging Zoonotic Diseases at Cross River State Teaching Hospital

Background of the Study

Zoonotic diseases are infections that are transmitted from animals to humans, and their emergence has become a si...

Read more
The Effectiveness of Forensic Accounting in Investigating Corruption in Nigerian Public Institutions: A Case Study of the Independent Corrupt Practices and Other Related Offences Commission (ICPC)

Background of the Study

Corruption has long been a pervasive issue in Nigeria, hindering socio-economic development, ero...

Read more
STUDENT'S PERCEPTION OF THE ROLE OF SCHOOL COUNSELOR IN THE CHOICE OF CAREER

ABSTRACT

The purpose of this study was to critically examine secondary school students...

Read more
THE IMPACT OF INTERNAL CONTROL SYSTEM ON THE FINANCIAL MANAGEMENT OF AN ORGANIZATION

ABSTRACT

Over the years, there have being a problem of incorrect and unreliable financial record which has lead to loss of organizational...

Read more
A Study on Employee Engagement and Its Effect on Service Quality in First Bank Nigeria Plc, Kano State

Background of the Study

Employee engagement is a critical factor influencing organizational success, particularly in the service industry...

Read more
Share this page with your friends




whatsapp