Responsibilities of Risk Committee in Corporate Governance

The risk committee overlooks the establishment of risk management governance, risk management procedures, and risk control infrastructure of the entire business operations. Also, the risk committee overlooks the processes of implementing and monitoring compliance with identifying and reporting risks, ensuring effective and timely implementation of actions to mitigate risks.

Responsibilities of Risk Committee in Corporate Governance

Following are the Responsibilities of Risk Committee in Corporate Governance,

  1. Establish the design and implementation strategies of the risk management process for the entire business.
  2. Work with the board of directors to identify the risk position of the company using risk appetite and risk tolerance.
  3. Manage the specific risks of the company which are more effectively managed in whole company-wise and which are not possible to manage by the individual business units.
  4. Understand the inter-relationship and inter-dependencies among key risks.
  5. Determine both the positive and negative corrections that can change the impact of risks.
  6. Work with the board to plan the process of risk measurements and risk parameters.
  7. Analysis of how efficiently risk is controlled, and the extent to which they may materially change the risk profile of the company.
  8. Provide the board with information about the key elements of risk management relevant to the oversight process.

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