Difference between revisions of "Internal Governance"

From Open Risk Manual
 
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== Definition ==
 
== 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  
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'''Internal Governance''' of a firm in the context of [[Risk Management]] is the formal (that means: explicit, written, agreed between all involved parties) set of structures, communication lines, procedures and rules  
  
 
== Components ==
 
== Components ==
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* The organisational structure as defined e.g., in organizational charts
 
* The organisational structure as defined e.g., in organizational charts
 
* The lines of responsibility as defined in job descriptions
 
* The lines of responsibility as defined in job descriptions
* The risk management processes as specified in internal policies and rules
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* The [[Risk Management]] processes as specified in internal policies and rules
 
* [[Internal Controls | Internal control]] mechanisms as established by Risk Management and Audit functions
 
* [[Internal Controls | Internal control]] mechanisms as established by Risk Management and Audit functions
 
* Remuneration policies and in particular the incentives created by those
 
* Remuneration policies and in particular the incentives created by those

Latest revision as of 17:11, 8 November 2019

Definition

Internal Governance of a firm in the context of Risk Management is the formal (that means: explicit, written, agreed between all involved parties) set of structures, communication lines, procedures and 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


Contributors to this article

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