Risk Governance, Risk Disclosure, and Bank Performance: A Systematic Review

Abstract

This study aims to analyze the relationship between risk governance, risk disclosure, and banking performance through the Systematic Literature Review approach to publications over the past five years. The results show that risk governance plays an important role in increasing transparency, strengthening internal supervision, and improving the performance of financial and market banks. Risk disclosure was found to have an indirect effect on performance through increased trust and reputation of financial institutions. In addition, the effectiveness of the risk committee is a reinforcing factor that ensures the consistent implementation of risk policies. The study also highlights the paradigm shift in governance from regulatory compliance to a sustainability and digitalization approach. Practically, this study provides recommendations for regulators and banking players to strengthen risk governance systems based on transparency and integration, as well as for future researchers to explore the role of risk committees as a moderation variable.