Risk committee
A risk committee supports board oversight of risk within an agreed remit. It can review risk appetite, significant exposures, management’s responses and the quality of risk information. It does not ordinarily become the owner of every operational risk or replace management’s responsibility to manage risks. Its relationship with the audit committee should be clear to avoid gaps or duplicated oversight.
Worked example
A risk committee reviews whether new lending exposes a business beyond agreed limits. It challenges management’s assessment and reports to the board; operating managers remain responsible for implementing the approved controls and responses.
Common mistake
Do not assume a separate risk committee is legally required for every organisation. Also distinguish oversight of risk from internal audit’s independent assurance role.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |