Internal Governance

From Open Risk Manual
Revision as of 17:13, 30 November 2019 by Wiki admin (talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

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. Also Risk Governance

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

» Wiki admin