Risicogovernance

Risicogovernance is the set of structures and processes that steer how risks are identified, assessed, managed and monitored within an organization, with emphasis on accountability and decision-making at the highest levels. It sits at the intersection of risk management and governance, ensuring that risk-taking aligns with objectives, risk appetite, and regulatory and societal expectations.

Key elements include the risk governance framework, the board and risk committee mandate, risk appetite statements, policies and controls, and the roles of the board, executive management, risk function, internal audit and regulators. The governance process typically comprises risk identification, risk assessment and prioritization, risk treatment and mitigations, ongoing monitoring, escalation and reporting, and independent assurance. Effective risk governance requires clear accountability, timely information flows, and integration with strategic planning.

Standards and frameworks such as ISO 31000, COSO ERM, and OECD risk governance principles provide guidance on establishing risk governance structures and processes. In practice, risk governance is relevant across corporate, financial and public sector institutions, and increasingly for climate risk, cyber risk, supply chain risk and other systemic risks.

Benefits of strong risicogovernance include improved strategic resilience, better resource allocation, enhanced stakeholder trust, and strengthened compliance. Common challenges are aligning risk governance with strategy, nurturing a robust risk culture, ensuring data quality, and coordinating cross-border or cross-functional risk ownership.

See also corporate governance and risk management.