Risk governance

Principle

The approach to risk management is communicated throughout the organisation and supported by explicit ownership of the risks and a clear allocation of responsibility for their day to day management.

 Minimum standards

Defined approach
The organisation has a clearly defined policy or approach for risk management setting out its strategy and objectives and the approaches and processes the organisation adopts to achieve them.
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Clear understanding of capacity
The organisation has a clear understanding of its capacity and appetite to bear risk.
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Risk issues addressed
Risk and risk management issues are addressed at an appropriate board, committee or equivalent.
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Governance structure
The organisation has a structure for governance in place that supports risk management by providing clearly defined accountabilities, expectations and reporting requirements for all relevant parties.
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Management ownership
There is unambiguous ownership of every aspect of the risk management process across the organisation. 
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Last updated on 21 Jun 2007