Since the start of the world financial turmoil a lot of urgent questions arouse for the financial and banking sector concerning necessary reforms and changes in day-to day operations, strategy and regulation. There are several key-points that occupy minds of the practitioners and scholars worldwide ever since. In this respect the vital importance of governance and risk issues for the financial sector was re-emphasized by bank professionals, supervisors and standard setters. How should markets and financial institutions be governed and regulated with regard to risk framework and performance? Does corporate governance really play significant role in risk control and management process? Will the new tendencies in regulation help to achieve more sustainable condition in finance and banking industry? Do financial institutions need stricter regulation? Does corporate governance have potential to contribute significantly to safeguarding against systemic risks? Which corporate governance standards will effectively improve financial institutions in this case? Thus, a new paradigm for risk and performance in finance and banking needs to be developed through governance and control procedures.