<![CDATA[This study aims to analyze the effects of financial risk and corporate governance characteristics on the performance of banks listed on the Indonesia Stock Exchange (IDX). Financial performance is measured using Return on Assets (ROA) as the dependent variable. The independent variables include liquidity risk, credit risk, operational risk, board size, board meeting frequency, board independence, and operational efficiency. Bank size and leverage are also incorporated as control variables to strengthen the analytical model. The sample consists of 48 banks listed on the IDX during the 2020–2024 period. Panel data regression analysis was conducted using EViews 9. The model selection tests indicate that the fixed effects model is the most appropriate specification. The novelty of this study lies in the inclusion of operational efficiency to examine its role in enhancing bank financial performance and as an indicator of a bank’s ability to effectively manage operational resources amid financial risks. The results show that liquidity risk, credit risk, and board meeting frequency have significant negative effects on financial performance, whereas bank size has a significant positive effect. Meanwhile, operational risk, board size, board independence, operational efficiency, and leverage do not exhibit statistically significant effects in the hypothesized directions. These findings highlight the important role of risk management and corporate governance in optimizing bank profitability. Therefore, banks should strengthen risk controls, improve operational efficiency, and enhance governance quality to achieve more sustainable financial performance.]]>
