Definition Of Risk Governance
The above risk appetite statement describes the parameters of strategic positioning as well as providing clarity on strategic intent.
Definition of risk governance. 10 governance of risk these high level statements provide parameters for risk consideration and intersect with strategic objectives and corporate value statements. Risk governance applies the principles of good governance to the identification assessment management and communication of risks. Risk governance refers to the institutions rules conventions processes and mechanisms by which decisions about risks are taken and implemented. Irgc develops concepts and tools for evidence based risk governance.
Governance refers to the actions processes traditions and institutions by which authority is exercised and decisions are taken and implemented. Risk governance is an important element of corporate governance. Risk governance applies the principles of sound corporate governance to the identification measurement monitoring and controlling of risks to help ensure that risk taking activities are in line with the bank s strategic objectives and risk appetite. It will reflect and seek to sustain and evolve the organisation s risk culture.
It can be both normative and positive because it analyses and formulates risk management strategies to avoid and or reduce the human and economic costs caused by disasters. But it does not. Since risk management is fundamental to running any business risk governance is a fundamental part of corporate governance. Risk governance applies the principles of good governance that include transparency effectiveness efficiency accountability strategic focus and the need for the chosen solution to be politically and legally feasible.