Abstract

Corporate governance plays a pivotal role in the mitigation of financial risk within organizations. Effective governance frameworks foster transparency, accountability, and ethical conduct, all of which are vital in the mitigation of financial risks. Firstly, the presence of an autonomous and proficient board of directors enhances oversight and decision-making processes. Secondly, efficient risk management systems and internal controls facilitate early detection and prevention of financial risks. Thirdly, transparent financial reporting and disclosure practices nurture investor confidence and diminish information asymmetry. These challenges encompass intricate regulatory frameworks, ownership structures dominated by family entities, and cultural factors. By embracing sound governance practices, Indian companies can fortify their resilience against financial shocks, allure investments, and sustain long-term growth. Policymakers, regulators, and corporate leaders striving to strengthen corporate governance frameworks and mitigate financial risks in India.

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