Are risk committees useful?

(extract from the Guide to effective risk management 3.0, read the full book for free: https://www.risk-academy.ru/en/download/risk-management-book)

Most of the risk managers we have interviewed agreed that having a management level Risk Management Committee has a significant positive effect on the overall risk management culture.

While the composition of the Risk Management Committee can vary from company to company, it should be sufficiently representative to ensure different points of view on risk are considered. Based on our interviews, the best results tend to be achieved when the risk committee brings together supporting functions (finance, risk, legal, security, internal audit) and business units (operations, sales, marketing).

The Committee can either deal with matters related to risk management methodology or it may participate in the decision-making process (investments, projects and other high-risk activities) or both.

The Committee may meet on a regular basis (monthly or quarterly) as well as upon request from the Chairman of the Committee if there are questions that require urgent risk analysis.

 

Watch more free risk management videos on http://www.risk-academy.ru/en/risk-management-video/ or subscrive to RISK-ACADEMY youtube channel https://www.youtube.com/user/alexausrisk

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s