【正文】 How Can Corporate Governance Control Enterprise’s Financial Risk Swapan Kumar Bala, FCMA Associate Professor Department of Accounting amp。 Information System s University of Dhaka, Dhaka Abstract: Financial Crisis in 2021 raised the debate again of whether corporate governance failure should be blamed. Lots of research has discussed the close relationships between corporate governance and risk control. However, empirical study, especially from the whole scenario of financial risk management of nonfinancial firm, is limited. In this article, I referred to a mature corporate governance appraisal framework CCGINK and a new corporate financial risk management system of SASAC to establish a threelayer corporate governance measurement system, including relationships between shareholders and managers, between controlling shareholders and minority shareholders and among all stakeholders, and a financial risk framework for nonfinancial firms. Then through multiple regression between two groups of indices, I suppose to find the answer to the question which aspects of corporate governance are able to control which elements of financial risks of nonfinancial firms. The research conclusion will provide pragmatic implications to policy makers and corporate executives for their regulation and management practice. Key Words: Corporate Governance Agency problem Financial risk Risk management Ⅰ . Introduction The Financial Crisis across the globe and the ramifications for the rest of the global economy in 2021 and 2021 raised the concern, another time, whether the failure is the one of Corporate Governance. According to OECD?s most recent report by Richard Anderson, Corporate Governance alone is not the cause of the current Financial Crisis. However, Corporate Governance could have prevented some of the worst aspects of the crisis had effective governance operated throughout the period of time during which the problems were developing and before they crystallized. Furthermore, effective Corporate Governance could have helped to reduce the catastrophic impacts that the global and national economies are now suffering. Corporate Governance is a plex concept with close relevance to economics, finance, laws and management. Through researching institutional changes among shareholders, boards, managers and other interest groups in microeconomics world, corporate governance takes key role in improving corporate performance, especially for public corporations. According to McKinsey?s serial reports, investors are willing to pay above 20% premium for good corporate governance. Also, failures of firms? reform in Eastern Europe and Russia, from the perspective of asset control, which led to substantial diversion of assets by managers of many privatized firms and the virtual nonexistence of external capital supply to firms (Boycko, Shleifer and Vishny 1995), informed us that we can not avoid the influence of this deeper management mechanism beneath property rights allocation and protection, especially in the course of China?s stateowned enterprises? (SOEs) reform. The plush droplight of Sinopec and the employee group housepurchasing of CNPC with low price in 2021 disclosed the high principalagent risk in corporate governance of SOEs. Besides, a large number of corporatized SOEs remain dominated by a single state shareholder that exercises its control either through formal channels, such as shareholder voting, or through traditional channels, such as the acknowledged authority of the Communist Party?s anizational department over personnel appointments in key stateowned and statecontrolled enterprises, whether or not corporatized and listed on the stock market (Clarke, 2021). Relationshipbased deals expropriate the interests of shareholders, especially minority shareholders. In 2021, China?s Stateowned Assets Supervision and Administration Commission (SASAC) applied Temasek Holdings management model into Shanghai Baosteel Group Corporation as an experiment site for Board of Directors Reform. The SOEs further reform needs deeper research in the area of corporate governance and risk control, especially financial risk management. The purpose of this study is to address the questions as followings: 1) Will corporate governance be an effective risk controller in enterprises? financial risk management? 2) Which factors in corporate governance will mitigate or avoid what kind of financial risk elements? If we can answer these questions, we may provide concrete advice to policy makers and corporate managers to adapt their management and governance methods rather than just pinpoint the problem. This empirical study of relationship between corporate governance and risk management should have pragmatic implications for further firm application and government policy making. Ⅱ .Brief Literature Review 1. Corporate Governance Corporate Governance was first mentioned as a concept in Willianmson?s article On the Governance of the Modern Corporation (Willianmson, Oliver E.,1979). In the following 30 years, Corporate Governance (CG) has bee one of the most important ingredients of theories of modern firm, although it is still a new concept even in developed markets such as United States and United Kingdom. As Berglof contended, CG has been a dominant policy issue in