The Chartered Governance Institute have published guidance providing outline terms of reference for risk committees. It is intended as a guide for companies to adapt to the needs of their individual company and should be tailored to reflect the specific risks to the organisation.
Board-level risk committees, separate from the audit committee, are usually required for the boards of large banks and insurance companies, and their role and remit is largely prescribed by regulation. Companies in other sectors are increasingly considering having a separate board-level risk committee but the role and remit will vary depending on the needs of the company.
The guidance provides a long list of risks that are likely to be considered by companies and a second list of risks that are specific to certain business sectors. These examples of risks are intended to stimulate a board’s thinking.
The guidance can be click here