Internal Governance

From Open Risk Manual
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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. Also Risk Governance


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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