Corporate governance is considered one of the fundamental pillars for enhancing transparency, accountability, and financial soundness in the banking and financial system. The present study aims to diagnose the corporate governance system in Iranian banks and financial institutions by focusing on two key components: the Risk Committee and the Internal Audit Unit. This research employed a survey method using a researcher-made questionnaire to collect data from 272 respondents. The data were analyzed using the Student's t-test.

The findings indicated that, out of 27 items related to the Risk Committee, 19 were identified as strengths and 5 as weaknesses. Furthermore, the performance of private banks in some aspects of risk management was found to be superior to that of public banks. Regarding the Internal Audit Unit, 16 out of 20 items were identified as strengths, 2 as weaknesses, and 2 yielded inconclusive results. Comparative analysis of private and public banks in this component also revealed statistically significant superiority of private banks in 10 items. The study concludes that despite progress in regulatory structures of banks, there are still significant challenges and weaknesses concerning independence, efficiency, and the effective implementation of corporate governance—particularly in public banks. Accordingly, the study recommends strengthening the supervisory role of regulatory bodies, enhancing the professional independence of internal audit units, improving risk management mechanisms, and paying special attention to performance differences between private and public banks. By providing empirical evidence, this study underscores the necessity of reviewing and reinforcing corporate governance components to promote stability, soundness, and effectiveness in the country’s banking system.