UNILAG Journal of Business, 3(2), 147-170, 2017 147 Risk Management Through Corporate Governance: Implications on the Performance of Banks in Nigeria Fadun, Olajide Solomon PhD., Department of Actuarial Science and Insurance, Faculty of Management Sciences, University of Lagos, Akoka Lagos Email: sofadun@yahoo.co.uk ABSTRACT Corporate governance consists of a system through which organisations are governed and organised to increase the firm’s value and protect stakeholders interest. The study examined corporate governance as a risk management tool in the Nigerian banking sector. It also considered implications of corporate governance practices on the performance of banks in Nigeria. In addition to the literature, a structured questionnaire was administered to senior managers and top management staff of 15 selected banks in Nigeria. Data collected were analysed with a simple percentage to illustrate relevant relationship, and the study’s hypotheses were validated using Chi-square (X 2 ) statistical analysis. The findings revealed that enforcement is the primary challenge associated with the banking sector regulatory surveillance procedures. The findings suggested that good corporate governance is beneficial because it enhances public confidence in Nigerian banks; banks’ financial performance can be enhanced through good corporate governance practices; banks’ boards and shareholders can pressurize banks management to act in their interest, and good corporate governance practice can enhance competitive capacity of banks in Nigeria. The findings imply that inadequate supervision contributes to low level of compliance with corporate governance provisions, and CBN and other regulators need to improve their supervision and monitoring activity to ensure that banks embrace good corporate governance practices. It was recommended that the government should enhance corporate governance provisions to enhance public confidence in the Nigerian banking sector, and CBN and other regulators should be more business like to ensure that supervision and enforcement of corporate governance provisions are strengthened in the Nigerian banking sector. Keywords: Corporate governance, Banks, Risk management, Nigeria 1. Introduction Financial scandals on a global scale and the collapse of some large corporate entities in the United States of America (USA) and Europe have made corporate governance a topical issue. Corporate governance consists of a system through which organisations are governed and organised to increase the firm’s value and protect stakeholders interest. Sustaining public confidence is integral to the survival of the financial sector because of the critical role the sector