The challenges for banks due to the new detailed regulation of the 'management body' predict a reduced bank risk at low cost. In this chapter, we determine the relevance of this statement, empirically testing whether the corporate governance of banks influences banking risk and banking efficiency. The results reveal a relationship between efficient banks and risk. However, the corporate governance variables considered in this chapter reveal limited evidence on the effect on risk, although corporate governance attributes can explain banking efficiency. Consequently, we cannot find strong support that corporate governance reduces risk without a significant cost.