Risk management as increased corporate governance requirement in Italian banks and insurance companies
Open Access
- 27 December 2019
- journal article
- Published by Virtus Interpress in Corporate Board: role, duties and composition
- Vol. 15 (3), 58-69
- https://doi.org/10.22495/cbv15i3art5
Abstract
The paper explores how risk management and internal audit functions can be used effectively to strengthen governance frameworks and ensure compliance with new regulatory requirements in the financial services industry. The aim of the paper is the description of the regulatory framework which gives great relevance to risk management both in banks and in insurance companies. A right and efficient risk management scheme, in fact, is based on efficient corporate governance of the financial intermediary. Better corporate governance ensures the achievement of risk management principles. For this, the paper explores the organizational and governance structure of financial intermediaries. The paper is a timely addition to the current discussion around the relevance of sound governance for banks and insurance. It extends the effort to evaluate risk governance standards at these financial intermediaries against regulatory requirements. The paper comes to the conclusion that risk mitigation as the process of reducing risk exposure and minimizing the likelihood of an incident needs to be continually addressed to ensure the business is fully protected and this aim is reached by linking controls to risks, activities, policies, and procedures and to track their effectiveness.Keywords
This publication has 21 references indexed in Scilit:
- Bank GovernancePublished by Oxford University Press (OUP) ,2016
- Executive board composition and bank risk takingJournal of Corporate Finance, 2014
- Bank Corporate Governance, Beyond the Global Banking CrisisFinancial Markets, Institutions & Instruments, 2013
- Corporate Governance and Risk Taking: Evidence From the U.K. and German Insurance MarketsJournal of Risk and Insurance, 2013
- Risk management, corporate governance, and bank performance in the financial crisisJournal of Banking & Finance, 2012
- Governance and the Financial CrisisInternational Review of Finance, 2011
- Why bank governance is differentOxford Review of Economic Policy, 2011
- Do Life Insurers' Asset Allocation Strategies Influence Performance within the Enterprise Risk Framework?The Geneva Risk and Insurance Review, 2009
- Corporate control, bank risk taking, and the health of the banking industryJournal of Banking & Finance, 2000
- Corporate Governance in Banking: A Conceptual FrameworkSSRN Electronic Journal, 2000