The quality of risk oversight by a company's board of directors is of critical importance in preserving shareholder value and protecting stakeholder interests. The research for this thesis was aimed at constructing a Risk Governance Index (RGI) which sought to measure the quality of risk oversight by the board of directors in the parent companies of life insurance companies registered with the Australian Prudential Regulatory Authority (APRA). The thesis contributed to research in the financial services sector. The RGI enables regulators and shareholders to monitor whether the board of directors is discharging its duties and responsibilities effectively to protect and enhance shareholder investment, as well as the interests of the depositors and policyholders of a regulated financial institution.