![]() Communication among committees- Consider how the committees will keep itself informed about risks and risk-oversight practices.Since risks are interconnected, it is important to consider how these relations should be addressed. For example, the audit committee may maintain oversight of risks associated with financial reporting. Scope of risk committee responsibilities- Decide whether the risk committee will be responsible for overseeing all risks or just some.Also consider who the chief risk officer ( CRO) will report to, whether it is to the risk committee, board, or the chief executive officer ( CEO). Oversight of the risk management infrastructure- Consider who will be in charge of the people, processes and resources of the risk management program.Such consideration promotes better risk governance and ensures that risk oversight is value-adding. Alignment of risk governance with strategy- It is key that the board, management, and business units be aligned with their approach to risk and strategy.In doing so, the board should assess the quality of the current risk governance and oversight structure, the risk environment, and the future needs of the organization. The needs of the stakeholders- The needs of stakeholders should be considered.The following factors reflect important considerations when deciding whether a risk committee at the board is appropriate. This section outlines considerations when forming a risk committee. 1: Considerations in Forming a Risk Committee Some of the main messages from these four sections are described below. While the guide largely addresses both board members and risk committee members at large banks and bank holding companies (BHC’s), it is useful for any company that wishes to obtain more information on risk governance and oversight. In addition, more tools and resources are referenced throughout. The overview ranges from the initial contemplation of establishing a risk committee, to ways of evaluating the effectiveness of the committee. The document is organized into four sections which provide an understanding of board-level risk committees. The resource guide, published by Deloitte, is designed to assist board members of publicly held banks, bank holding companies, and other financial services companies in the design, development, and operation of a board-level risk committee.
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