riskikomitea

Riskikomitea, or risk committee, is a committee of a company's board of directors responsible for enterprise risk management and risk governance. Its primary purpose is to assist the board in understanding and managing the major risks that could affect the company's ability to achieve its objectives, and to ensure alignment between risk appetite and strategy.

The committee typically reviews and approves the risk management framework, risk appetite statements, and policies; monitors material risks, key risk indicators, risk exposure by business unit, and the adequacy of controls; oversees risk reporting to the board; reviews crisis management, business continuity, and cyber risk; and coordinates with internal and external assurance functions.

Composition: Usually composed of board members, often including independent or non-executive directors. The chair may be a board member with risk expertise. The chief risk officer or risk management function may present to the committee but is not always a voting member.

Relation to other governance bodies: Works alongside the audit committee, governance committee, or closely with them. Responsible for ensuring risk management is integrated with strategy and performance management; may escalate to the full board when losses or exposures exceed thresholds.

In practice: In many jurisdictions, risk committees adopt frameworks such as COSO ERM or ISO 31000 and tailor their scope to the organization's size and industry. They are more common in listed or regulated entities and multinational corporations.