Abstract: Corporate governance is considered to have a significant role in influencing the growth aspect of an organization while also simultaneously reducing the risk aspect and improving the financial performance of the company for the stakeholders and attracting new potential investors. The present study has touched on some significant factors that relate to the making of internal and external policies of firms. It shows how through proper use and division of resources, sustainable innovation and practices can be conducted. A descriptive research design has been chosen to show the reasoning behind some of these factors and how they relate to the growth of a firm or organization. Secondary data has been collected for the study and it has been observed with the help of qualitative research. The results of the literature analysis have been observed with the help of different themes. Corporate governance and firm performance have been observed to be closely related to the present study. Therefore, it has an important contribution while determining the firm performance of the company. Issues pertaining to risk management and strategies with the help of which the corporate governance policies can be improved have also been analyzed.

Keywords : Corporate governance policy (CGP), corporate governance, firm performance, risk management.