Enhancing Corporate Governance As A Strategic Tool For Addressing Financial Crisis: A Comprehensive Analysis

Samridhi Mittal, Christ (Deemed to be university) Pune Campus

ABSTRACT

Numerous financial crises have occurred in the twenty-first century, each with its own distinct origins and effects, highlighting the vital role that good corporate governance plays in averting these crises. The purpose of this essay is to examine how important corporate governance practices are for spotting, averting, and managing financial crises. This research article examines the complex link between corporate governance structures, financial decision- making processes, and crisis resilience. It does this by drawing on a thorough analysis of the literature. Through the examination of case studies from many industries and geographical areas, it aims to offer valuable perspectives on the efficacy of distinct governance structures in preventing financial disasters. The research highlights the importance of accountability, openness, and moral behaviour in business settings as the cornerstones of sound governance procedures. It explores how risk management skills may be improved and long-term sustainability can be fostered through public reporting, independent monitoring, and stakeholder involvement. This study also examines how the board of directors, corporate leadership, and regulatory agencies may support good governance practices that benefit all parties involved. It assesses how organizational resilience to economic downturns is impacted by board composition, CEO duality, and regulatory compliance.

Additionally, the study investigates how the dynamics of corporate governance are affected by new trends including globalization, digitalization, and environmental sustainability, as well as how these changes affect crisis management techniques. It looks at theoretical frameworks as well as actual data in an effort to provide policymakers, business executives, and investors with useful advice on how to strengthen governance structures and lessen the systemic risks connected to financial crises. This study concludes by arguing that, in times of economic uncertainty, strong corporate governance is essential to preserving financial stability and boosting investor confidence. It promotes a comprehensive strategy that combines institutional best practices, regulatory changes, and moral principles to strengthen

corporate organizations' ability to withstand future crises.

Keywords: risk management; regulatory compliance, stakeholder engagement, ethical behaviour