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Risk Committee Composition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Risk Committee Composition

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by beingady1.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • December 1, 2020 at 11:43 am #597271
    beingady1
    Participant
    • Topics: 6
    • Replies: 9
    • ☆

    Like other Committees, should Risk Committees also consist solely of NEDs?

    December 1, 2020 at 2:35 pm #597277
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    No…..NEDs take no part in the day-to-day running of a business so might not be well-placed to identify and assess risks. Risk committees are not a requirement of the UK Corporate Code and are not specified there. A NED or two on the committee is a good idea as they can bring perspectives to risks such as reputational risk, but many risks will be identified by executive directors aided by staff below board level.

    December 1, 2020 at 9:10 pm #597300
    beingady1
    Participant
    • Topics: 6
    • Replies: 9
    • ☆

    Thanks Ken

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    Posts
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  • The topic ‘Risk Committee Composition’ is closed to new replies.

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