Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse

Over the last 10 years it became almost dogmatic that risk management effectiveness has to be disclosed at the Board level. It seems to be equally accepted that full Board is responsible for risk management oversight, who, however can and often do, delegate this oversight responsibility to the Audit Committee. This is in fact so… Continue reading Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse

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

Practical ideas: Include risk items on Board’s agenda

This next step is very important to reinforce strong risk culture within the organisation. There are various ways of including risk discussion on the Board’s agenda, however we believe that it is more effective to spend fifteen minutes on risk matters at every meeting than an hour once a quarter or a day once a… Continue reading Practical ideas: Include risk items on Board’s agenda

Including risk management on a Board’s agenda

Including risk management on a Board’s agenda is very important to reinforce strong risk culture within the organisation. There are various ways of including risk discussion on the Board’s agenda, however we believe that it is more effective to spend fifteen minutes on risk matters at every meeting than an hour once a quarter or… Continue reading Including risk management on a Board’s agenda