The globalization of markets requires as an indispensable condition the function of a universal financial environment whereby its main purpose is the unhampering service and support of the different transactions between signatory sides. As it is prudent, this system cannot operate without the presence and growth of the banking sector.Thereby, banks have emerged as the greatest regulator of the welfare of the citizens in the 21st century. Additional to its operation though, the banking sector in order to be developed and expanded, it is essential and inevitable the undertaking of risk. Thus, this is judged as of vital importance, as it can lead to incalculable damages not only for the depositors of a bank but also for a country as a whole because a bailout requires the disbursement of additional capitals and liquidity injections which probably couldaffect a nation’s budget.The breakout of the global financial crisis in 2008 as well as its causes is owing to a great deal of the excessive risk-taking of banks by their directors.Therefore it is evident that the function of the banking institutions serves as a link to the chain of the global financial system and their correlation with the markets is such, so that every financial institution poses a form of risk to the markets as a whole. As a counterweight of this risk, the term of corporate governance has been evolved, and via the appliance of rules attempts to mitigate it and guarantee the safe and sound functionality of the banking sector. Hence, the current dissertation studies the regulations of corporate governance and the factors that affect the risk of banks, as well as the correlation between them.