In the first article of this series, ”Part I: Management Actions in a Solvency II World”, we presented the Solvency II regulatory requirements an undertaking need to fulfil in order to be able to take management actions into consideration when calculating their capital requirement. In this article, we will focus on how management actions used in an internal SCR model can be evaluated and validated. This will be done from a perspective of both risk and return. An investment strategy monitoring realised volatility levels will be used as an example of a management action that can be used within an internal model to reduce the risk and therefore also the SCR of an undertaking.