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
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Review the existing committees structure |
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Decide on creating a new committee or extend the existing one |
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Download an example of a Risk Management Committee charter from www.risk-academy.ru |
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Decide on the Committee participation. Reward people for participation in the Risk Committee |
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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/
Check out other risk management books
RISK-ACADEMY offers online courses
Informed Risk Taking
Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!
ISO31000 Integrating Risk Management
Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.
Advanced Risk Governance
This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.
