Internal Governance

From Open Risk Manual

Definition

Internal Governance of a firm in the context of Risk Management is the formal (explicit, written, agreed) set of structures, communication lines, procedures, rules

Components

The components of internal governance are

  • The organisational structure as defined e.g., in organizational charts
  • The lines of responsibility as defined in job descriptions
  • The risk management processes as specified in internal policies and rules
  • Internal Control mechanisms as established by Risk Management and Audit functions
  • Remuneration policies and in particular the incentives created by those

See Also


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