Risk Management and Corporate Governance Model of the Italian Credit Cooperative Banks

Our research is a conceptual study in which we identify and discuss the Corporate Governance structure and the Risk Governance Framework of 364 Italian credit cooperative banks in 2015. As sound corporate governance and internal controls have become the determinant elements for the stability of every single institution and of the overall financial system, we tried to draft a Corporate Governance and Risk Management model in order to evaluate its adequacy and compliance with the laws and the new regulatory requirements, imposed by the European Central Bank and the Basel Committee and transposed into the Italian legislative context by Banca d'Italia. This adequacy can also be reflected on the capitalisation of these banks. In fact, at the end of our paper, we briefly analyse the impact of an effective Corporate Governance system on the internal capital, as required by Basel II. Finally, we tried to consider the interaction between Corporate Governance and Risk Governance in order to strengthen the role of a robust communication among the different boards involved.