Risks and risk management have always played a special role in the banking sector, with the connection to value orientation being a relatively young area of focus. The conformity of the applied risk-adjusted control variables with value maximization has not yet been sufficiently theoretically substantiated from a capital market perspective. Michael Strauss examines the value relevance of banks' risk management from a capital market perspective, evaluating both practical implementation and the current literature view using an external assessment function. The author demonstrates that the current state of risk management leads to mismanagement for several reasons. He develops a new control logic and conceptually illustrates how insolvency and financial distress costs can be represented as relevant risk variables within the scope of risk management.