The existence of sound market risk management practices is crucial to promote investors confidence required for capital market development. This study would therefore help in guiding management, especially in the financial sector, in determining the best risk management strategy to be adopted by their organizations. The study will also bring to the fore, certain risk management practices that when paired with existing global events, can be detrimental to the performance of the financial sector.Both private and corporate investors will benefit from understanding the current practices of risk management in Nigeria and how these fit with recommendations in literature.