The aim of this study is to investigate the effect of financial risk on performance of selected manufacturing firms in Nigeria. Specifically, the study is set to determine the effect of operational risk, credit risk and liquidity risk on profit for the year of manufacturing firms in Nigeria. The study adopts ex-post facto research design. The population comprises of all the 17 quoted food and beverage companies in Nigeria, while the sample size comprised of 5 food and beverage firm namely: Nigerian breweries Plc, Champion breweries Plc, Nestle Nigeria, Guinness Nigeria Plc and Cadbury Nigerian Plc. Judgmental sampling technique is used in selection of the sample. Panel regression technique based on random effect model is used to establish the effect of operational risk, credit risk and liquidity risk on profit for the year. Unit root test and descriptive statistics are used as preliminary test. The study reveals that operational risk, credit risk and liquidity risk have a positive significant effect on profit for the year of selected manufacturing firms in Nigeria. Operational risk have positive significant effect on the profit for the year of selected manufacturing firms. The study recommends manufacturing firms in Nigeria to make cost benefit analysis before committing the firm’s resources towards a specific decision.