Why You Need A Risk Committee
With schedules already crammed with committee meetings, it’s tempting to reject the idea of forming yet another committee, even one devoted to risk. Don’t. Properly executed, it will be one of your bank’s most important governance bodies. Eric Holmquist, Managing Director, Enterprise Risk Management, authored the article titled, "Why You Need a Risk Committee," which appears in the April issue of the RMA Journal.
The idea of a risk committee is fairly logical. As a bank continues to develop and expand its enterprise risk management (ERM) program, it follows that a governing body should be formed to oversee and direct the program, working with management and the chief risk officer (where one exists). But banks are often unsure of how to structure these committees for maximum effectiveness and, more importantly, how to properly focus them. Please read this important article which provides banks with answers to their questions and concerns regarding a risk committee and provides much needed information in setting one up.