Corporate Governance, Risk Management, and Corporate Failure: Evidence from Financial Services Institutions Listed on the Lusaka Securities Exchange

This study examines the interaction between corporate governance (CG), enterprise risk management (ERM), financial performance, firm value, and regulatory oversight in influencing corporate stability and failure among financial service institutions listed on the Lusaka Securities Exchange (LuSE). Data were drawn from audited financial statements, corporate governance disclosures, regulatory reports, and interviews conducted across six financial institutions: Zanaco Bank Plc, Absa Bank Plc, Standard Chartered Bank Plc, Investrust Bank Plc, Madison Financial Services Plc, and Zambia Reinsurance Plc. The findings indicate that robust governance structures, integrated ERM frameworks, and strong financial performance are positively associated with firm value and institutional resilience. Conversely, weak governance practices, ineffective risk management, and regulatory non-compliance significantly increase the likelihood of corporate failure, as evidenced by the collapse of Investrust Bank Plc. The study highlights the critical role of regulatory oversight, effective board composition, and proactive risk management in enhancing financial stability in emerging markets.