CORPORATE GOVERNANCE MECHANISMS AND RISK MANAGEMENT PRACTICES IN NIGERIAN FINTECH FIRMS

Abstract

This study examined the relationship between corporate governance mechanisms and risk management practices in Nigerian Fintech firms. The research focused on four key governance variables board size, board independence, audit committee effectiveness, and ownership structure and their influence on risk management. A descriptive and correlational research design was adopted, and data were collected through structured questionnaires administered to board members, auditors, and senior management staff of selected Fintech firms. The data were analyzed using correlation and multiple regression techniques. Findings revealed that all corporate governance mechanisms had significant positive relationships with risk management practices. Specifically, board independence and audit committee effectiveness had the strongest impact, indicating that firms with more independent boards and effective audit oversight demonstrated superior risk management systems. Board size and ownership structure also contributed significantly, suggesting that diverse boards and transparent ownership enhance risk governance. The study concluded that sound corporate governance structures are essential for promoting accountability, transparency, and effective risk control in Nigeria’s rapidly expanding Fintech sector. t recommended that Fintech firms strengthen board independence, improve audit committee functionality, and promote transparent ownership structures to ensure robust governance and sustainable risk management outcomes in line with regulatory and global best practices.