Good Practice

When Do Companies Need a Board-Level Risk Management Committee?

March 18, 2013

Private Sector Opinion 31: The financial crisis and its rippling effects on the wider corporate sector have prompted companies to rethink how they govern and manage risk. This paper discusses the board’s role in the governance of risk and the benefits of establishing a separate board-level risk-management committee - a need that applies to financial and nonfinancial institutions, as well as large and small companies.

By Ivan Choi, a chartered management accountant, certified internal auditor, and specialist member of the Institute of Risk Management.

Foreword by Bob Tricker, founder-editor of the journal Corporate Governance  - An International Review and holder of  honorary professorships at two Hong Kong universities