THE ROLE OF THE RISK COMMITTEE AND THE CHAIR
The role of the Risk Committee has become a crucial aspect of organisational governance. The Risk Committee plays a critical role in identifying, assessing, and mitigating risks that may affect an organisation’s operations and strategic goals. In this article, we will discuss the role of the Risk Committee and the role of the Chair in ensuring effective risk management.
The Risk Committee is responsible for overseeing an organisation’s risk management activities. Its main role is to provide oversight and guidance to the organisation’s management team on risk management matters. Some of the key responsibilities of the Risk Committee include:
Identifying Risks: The committee identifies potential risks that may affect the organisation’s operations and strategic goals.
Assessing Risks: The committee assesses the likelihood and potential impact of identified risks to the organisation.
Developing Risk Management Strategies: Based on the assessment, the committee develops and recommends risk management strategies to the management team.
Monitoring and Reporting: The committee monitors the implementation of risk management strategies and reports to the board of directors on the effectiveness of the strategies.
Ensuring Compliance: The committee ensures that the organisation is in compliance with relevant regulations and laws related to risk management.
THE ROLE OF THE CHAIR
The Chair of the Risk Committee plays a crucial role in ensuring effective risk management. The Chair’s responsibilities include:
Leading the Committee: The Chair leads the Risk Committee and ensures that the committee operates effectively and efficiently.
Setting the Agenda: The Chair sets the agenda for committee meetings and ensures that the agenda items are relevant to the organisation’s risk management activities.
Chairing Meetings: The Chair presides over committee meetings, facilitates discussions, and ensures that all members have an opportunity to express their views.
Providing Guidance: The Chair provides guidance and direction to the committee on risk management matters, including risk identification, assessment, and mitigation strategies.
Liaising with Management: The Chair serves as a liaison between the committee and the organisation’s management team, ensuring that the committee’s concerns and recommendations are heard and acted upon.
Representing the Committee: The Chair may represent the Risk Committee to the board of directors or other stakeholders, communicating the committee’s recommendations and decisions.
The Risk Committee and its Chair play a critical role in ensuring effective risk management in an organisation. By identifying, assessing, and mitigating risks, the committee helps the organisation achieve its strategic goals and objectives. The Chair of the Risk Committee is responsible for leading the committee and ensuring that it operates effectively, providing guidance and direction to the committee on risk management matters, and liaising with the organisation’s management team. Together, the Risk Committee and its Chair can help an organisation navigate through uncertain times and emerge stronger and more resilient.
Deloitte guide on Risk Committee