Making Management Risk Committees Effective

Many companies have management risk committees (MRCs) as part of their risk infrastructure. That is likely due to the growing complexity of the risks inherent in the organization’s strategy and business model and increasing sophistication of risk management infrastructure. While not a part of the board, such committees nonetheless can contribute to the board’s risk oversight. The question arises as how to maximize their effectiveness.

This issue of Board Perspectives: Risk Oversight provides six suggestions for forming and operating management risk committees, however they may be titled and organized.