Managing Risk Factors through Corporate Governance for Financial Institutions of Pakistan

Abstract

Managing risk factors in financial organizations has gained more importance in recentyears
because of financial crisis after recession. The purpose of study is to identify the challenges
and their proposed solutions to handle the crisis under umbrella of good governance practices.
The specific objective of this study is to find out the factors and challenges that effect the
business of financial institutions via practicing the good governance. In accordance to this
critical situation has been evaluated with the help of risk regulatory model that covers the
identifying, measuring evaluating and monitoring techniques for financial institutions in
Pakistan.This study also emphasis on strategies and ways to eliminate organizational internal
and external risk factors through policies and modifying business models in order to get the
sustainable business position and organization growth. The research findings based upon the
systematic review of literature and qualitative survey from the industrial experts. This study
reveals that the risk factors directly associated with the sustainable business growth when
organization pays worthy attention towards the corporate governance. It also empowered the
organization to build a wealthy relationship with the customers and helps to retain the small
investment of customer with diversified banking products.