After the financial crisis taken place in 2008, a substantial part of blame regarding failure of banking system / financial system in crisis has been put on corporate governance. Weak and ineffective corporate governance mechanisms, rules, regulations and guidelines for banks and other financial institutions are considered as the major factors in occurrence of the financial crisis. Consequently, both regulations and supervisions are proposed to enhance corporate governance in relation to financial institutions and as a substitute for the same area where governance failed to supervise and control the financial institutions which is the evidence of failure. Therefore, deep changes in these areas are seem relevant and necessity to reinforce the financial sector stability. Thus, this paper aims at review the role of corporate governance in financial institutions such as banks, insurance companies etc. As governance framework is made to encourage the efficient use of available resources and also it is equally required for accountability of the used resources. The aim of corporate governance is just to align corporate governance as nearly as possible, in the interest of individuals, corporations and society.

KEYWORDS: Corporate Governance, Financial Institutions, Risk Management.