Risk committee
Practical Law ANZ Glossary w-036-9406 (Approx. 2 pages)
Glossary
Risk committee
A committee of a company's board of directors that is responsible for focusing on the company's risk management.
The ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (4th edition) (ASX Recommendations) recommend that listed Australian companies have a risk committee (ASX Recommendation 7.1(a)).
The duties of a risk committee are typically outlined in a committee charter, often available on the company's website, and include reviewing and making recommendations to the board in relation to:
- The integrity and adequacy of the company's non-financial reporting and the effectiveness of compliance and non-financial risk management systems.
- The company's attitude to and appetite for risk and its future risk strategy.
- The company's system of internal controls, risk frameworks and risk management.
- How risk is reported both internally and externally.
For more information about risk committees, see Practice note, Risk committees. For a standard form risk committee charter, see Standard document, Risk committee charter.
For a guide to Practical Law's key resources on board committees, including risk committees, including links to those resources, see Toolkit, Board committees.
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