The Dynamics of Corporate Governance and Risk Management in the Banking Sector Of Pakistan

  • Sara Khan

Abstract

This study aims to assess the impact of corporate governance (CG) on risk management (RM) in the banking industry. The research focuses on the implementation of strong corporate governance practices to enhance efficiency, ensure compliance with laws and moral principles, and safeguard stakeholder interests. The study utilizes a quantitative research design and empirical data to analyze the relationship between CG factors and risk management indicators. The variables considered include board independence, board size, audit committee, ownership concentration, firm size, and leverage. The findings reveal significant correlations between these variables and risk management, as measured by the Z-Score. The study contributes to the understanding of the role of CG in managing complex risks in the banking sector and emphasizes the importance of effective governance practices in ensuring financial stability and protecting stakeholders' interests.

Published
2023-08-17
Section
Articles