Paper Contents
Abstract
This study examines the influence of legal frameworks on corporate governance structures and their role in strengthening risk management practices within financial institutions. In an increasingly complex financial landscape, corporate governance and risk management have become vital for safeguarding institutional integrity and maintaining investor confidence. Regulatory standards and legal mandates, such as Basel III, the Dodd-Frank Act, and anti-money laundering (AML) laws, impose strict governance and compliance requirements on financial institutions, influencing risk oversight, decision-making, and accountability mechanisms. The study explores the legal obligations of corporate governance, focusing on board responsibilities, audit committees, fiduciary duties, and compliance structures essential for mitigating credit, operational, market, and liquidity risks. Through a comparative analysis across multiple jurisdictions, the research highlights variances in regulatory approaches, especially concerning cross-border risk management and the enforcement of governance standards. Furthermore, it identifies gaps in the existing legal framework, particularly in addressing emerging risks like cybersecurity and digital transformation, proposing necessary reforms to enhance governance and risk practices. Using a mixed-methods approach that includes case studies, documentary analysis, and expert interviews, this research provides insights into the critical role of legal governance in supporting effective risk management. Findings are expected to offer practical guidelines for strengthening compliance in financial institutions and propose legislative improvements to better align governance with contemporary risk challenges. This study contributes to the ongoing dialogue on enhancing legal accountability in financial risk management, reinforcing the importance of legal governance frameworks in fostering resilient and transparent financial systems.
Copyright
Copyright © 2025 Dr. Uttam Kumar Jha. This is an open access article distributed under the Creative Commons Attribution License.
