Practice kit - BPP Flashcards
1
Q
What is the primary function of risk committee?
A
The primary function of risk committee is to recommend to the board a sound system of risk oversight, management and internal control.
Its roles include :
- Recommendation to the boards of a risk management strategy which identifies, assesses , manages and monitors all aspects of risk throughout the company.
- Reviewing reports on key risks prepared by business operating units, management and the board, and then assessing the effectiveness of the company’s internal control systems in dealing with them
- Advising the board on risk appetite and acceptable risk tolerances when setting the company’s future strategic direction
- Informing shareholders , other key stakeholders of any significant changes to the company’s risk profile
