We empirically examine the impact of the stand-alone risk committee on corporate risk-taking and firm value. We argue that the existence of a stand-alone risk committee enhances the quality of corporate governance which results in improved investor protection by reducing corporate risk-taking and enhancing firm value. We find several measures of risk-taking decline significantly for firms that have a stand-alone risk committee compared with firms that have a joint audit and risk committee. We also find that the presence of a stand-alone risk committee is positively associated with firm value. The evidence is consistent with the proposition that the firms with a stand-alone risk committee can effectively evaluate potential risks and implement a proper risk management system.