The recent incidents have highlighted the vulnerability of businesses and governments to inflation, recession and natural disasters like floods, earthquakes, volcanic eruptions, tsunamis, drought, and cyclones. Several corporations are executing risk management system. In this study the role of corporate governance in order to mitigate systematic risk was analyzed. The current study examined the extent to which the systematic risk can be diminish in businesses through sound corporate governance practices in order to tackle the negative impact of systematic risk. The results indicated that there is an affirmative association between the mechanisms of corporate governance and systematic risk management. The findings revealed that businesses with sound corporate governance can better manage systematic risk due to sound corporate performance.
Keywords: Corporate Governance, Systematic Risk, Financial Performance and Pakistan Stock Exchange