Corporate Governance and Risk Management in Improving Company Performance: A Literature Review Study

This research analyzes the interplay of corporate governance (CG), risk management (RM), and their combined impact on firm performance. As businesses operate in increasingly complex environments, the role of governance and managing risks becomes crucial in ensuring long-term stability and growth. By employing a systematic literature review (SLR) approach, the research investigates relevant journal articles published between 2014 and 2024. The data were sourced from Scopus and Web of Science, using a structured search strategy according to the block-building method to classify search terms. A total of 572 articles were initially selected, and after further screening, 13 key studies were reviewed in-depth. The findings reveal a growing academic focus on the significance of CG and RM in enhancing firm performance. Specifically, the research highlights that companies with strong governance frameworks and effective RM strategies tend to perform better, both in financial terms and sustainability metrics. Moreover, the study identifies certain gaps in existing literature, particularly regarding the integration of sustainability practices and information technology (IT) into RM frameworks. These gaps suggest potential directions for future research to explore more comprehensive approaches in CG and RM, especially in the context of rapidly evolving global business environments. The study underscores the importance of continuous improvement in these areas to drive firm success and resilience.