Practical ideas: Consider establishing a Risk Management Committee at the management level or extend the mandate of the existing management committee

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.

USE THE CHECKLIST PROVIDED BELOW TO TURN THIS SECTION INTO ACTIONS

Review the existing committees structure

Decide on creating a new committee or extend the existing one

Download an example of a Risk Management Committee charter from www.risk-academy.ru

Decide on the Committee participation. Reward people for participation in the Risk Committee

Develop a meeting schedule and make it available to employees

USEFUL VIDEOS

https://www.youtube.com/watch?v=fHwtr5pr1Rk Alex Sidorenko from RISK-ACADEMY talks about the risk committees and whether they are useful for building risk culture and integrating risk management into decision making.

USEFUL LINKS AND TEMPLATES

Risk Management Committee charter –
http://www.risk-academy.ru/en/download/risk management-committee/

 

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