Abstract

One feature of the financial crisis - both for the banking and for insurance sector - was an underestimation of risks. Under this scenario, Solvency II - an advanced supervisory regime with a risk-based approach - comes into play. One of the critical aspects of the new legal framework is related to management of risks and governance, the so-called «Pillar II», which is considered here with particular reference to the Board of Director's effectiveness. This contribution is intended to stress the strong correlation and the delicate balance between the Supervisory Authority assessment on corporate governance and the Board of Director's responsibility for risk governance.