What is the function of a risk management committee?

The function of a risk management committee is to oversee the organization’s risk management strategy. This committee is typically responsible for identifying, assessing, and prioritizing risks that the organization may face. By evaluating these risks, the committee plays a crucial role in developing strategies and policies to mitigate those risks effectively, ensuring that the organization can meet its objectives while minimizing potential adverse effects.

The oversight by the committee ensures that there is a structured approach to risk management across different areas of the organization, promoting a culture of risk awareness and proactive management. Their responsibilities often include reviewing risk assessments, advising on risk appetite, and ensuring compliance with relevant regulations and standards.

In contrast, managing financial resources, coordinating employee training programs, or handling client relations are functions that relate more to specific operational areas of the organization rather than the overarching strategic function of managing risk. These areas may intersect with risk management, but they do not encapsulate the primary focus and purpose of a risk management committee.