Corporate Governance Risks Mitigation of Listed Companies in Nigeria

Abstract

This paper investigates the relationship between corporate governance mechanisms and risk mitigation in listed companies in Nigeria. Utilizing secondary data analyzed qualitatively through content and document analysis, the study addresses the critical concern of effective governance in managing operational stability and financial performance risks. The findings underscore the vital role of risk management committees in enhancing corporate governance and mitigating earnings management practices, as viewed through the lens of Agency Theory. The paper explores the concepts of corporate governance, risk, and risk mitigation, highlighting the challenges in compliance and transparency within the Nigerian context. Empirical evidence discusses the impact of risk governance structures, the significance of risk management committees, and the involvement of legal frameworks in fostering a resilient corporate environment. The conclusion emphasizes the necessity of strong corporate governance practices, including board independence and expertise, for effective risk mitigation and long-term sustainability. Recommendations include prioritizing the implementation of robust corporate governance systems, ensuring the effectiveness of risk management committees, and continuously improving risk management processes to navigate regulatory complexities and emerging risks in the pursuit of sustainable economic growth in Nigeria.