Risk Committee
Definition
A Risk Committee is a board-level committee or equivalent, responsible for advising the board on the bank’s overall current and future risk tolerance/appetite and strategy, and for overseeing senior management’s implementation of that strategy. [1]
Responsibilities
Risk Committee responsibities include capital and liquidity management, as well as for credit, market, operational, compliance, reputational and other risks of the institution.
To enhance the effectiveness of the risk committee, it should receive formal and informal communication from the bank’s [[Risk Management Function]] and CRO, and should, where appropriate, have access to external expert advice, particularly in relation to proposed strategic transactions, such as mergers and acquisitions.
References
- ↑ BCBS, Principles for enhancing corporate governance
