 These days, financial and investment analysts are giving much consideration to an effective corporate governance system, while analyzing the financial health and riskiness of any corporate firm under their consideration. Generally, the relative quality, strength, and reliability of a company's corporate governance system are the factors that affect an investor's assessment of investment and valuation of the company under their consideration. If a company fails to incorporate an effective corporate governance system, then this means that investment of the shareholders or other investors in this company will be ruined. Wicker corporate governance system riskier would be the value of investment in such type of company. In this regard, there are few types of risks that may stem from the weaker corporate governance system. In this regard, the first risk is the accounting risk. This means that the investor's decision may be riskier due to the omission, incomplete, and misstatement of a significant information that is not available in the financial statements of a company, or the other related disclosures. The second is the asset's risk. This means that there are chances of risk that the assets owned by the owners in a firm may be used by the managers or directors in the form of heavy perks and other lavish compensation packages. Liability risks. This means that sometimes the managers accept liabilities at the cost of the shareholders' equity that may decline the value of investment in the company. And generally, these liabilities or obligations come in the form of off-balance sheet items. The last is the strategic policy risk. This means sometimes a strategic policy taken by the managers or the directors may not be in the favor of the shareholders. And if the policy introduced, implemented, the result may be the diminution in the value of the investment made by the shareholders in that particular company. Dear students, studies in advanced countries of the world like US and European countries have shown that corporations with stronger CG systems enjoy higher profitability, better investment performance, and stronger market power. But the phenomena of this strong corporate governance is also equally workable for the developing and emerging economies of the world. A good corporate governance system ensures better results for the companies and their investors. And of course, for the other stakeholders as well. Investment analysts should integrate corporate governance characteristics into their financial and investment analysis. And they also develop appropriate monitoring mechanics to monitor the corporate governance functioning of the firm under their consideration.