Monitor the organisation’s exposure to risk and the key risks that could undermine its strategy, reputation or long-term viability

Overview & Purpose

What This Standard Covers

This Standard outlines the governing body's responsibility in overseeing risk management processes, ensuring that strategies and business models remain resilient against key threats to the organization's reputation and long-term viability.

Performance Criteria

• Receive timely and regular reports on key risks.
• Evaluate the quality and sufficiency of these risk reports.
• Review and act upon risk management reports.
• Continuously assess the business model to ensure alignment with risk tolerance.

Knowledge & Understanding Requirements

• Importance of clear accountability within the organization.
• Skills in interpreting and analyzing risk reports.
• Ability to question and challenge management reports as needed.
• Awareness of actions required based on risk management reports.
• Knowledge of communication and information flow to the governing body.
• Understanding assurance and verification processes for reports.
• Impact assessment of emerging risks on the business model and risk appetite.
• Awareness of the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) factors affecting the organization.
• Knowledge of the organization's relationship with supervisory and governmental authorities.
• When to seek specialist input for risk management.
• Management's responsibility in ensuring data accuracy and risk information governance.
• Flexibility in risk management review processes outside regular meetings.

Relevent Roles

• Managers and Senior Officials
• Directors and Chief Executives of Major Organisations
• Senior Officials of Special Interest Organisations
• Finance Managers and Chartered Secretaries
• Personnel, Training, and Industrial Relations Managers
• Chartered and Certified Accountants
• Management Accountants
• Company Secretaries