The impact of corporate governance and risk management on bank performance

Abstract

The Nigerian banking sector has experienced significant transformations over the past few decades, marked by periods of rapid growth, financial crises, and regulatory reforms. Central to the stability and performance of these institutions are two critical factors: corporate governance and risk management. Corporate governance encompasses the structures, policies, and practices that guide a bank's operations, ensuring accountability, transparency, and ethical conduct. Effective governance frameworks are instrumental in aligning the interests of stakeholders, mitigating conflicts, and fostering investor confidence. Risk management, on the other hand, involves identifying, assessing, and mitigating potential threats that could adversely affect a bank's assets, operations, or reputation. In an environment characterized by economic volatility, regulatory changes, and technological advancements, robust risk management practices are indispensable for safeguarding financial stability.