Sample risk committee charter

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This sample risk committee charter is based on leading practices observed in the analysis of a variety of materials.

It is important to note that the Risk Committee Resource Guide practices are drawn from experience and an understanding of practices currently being used.

Sample risk committee charter

Purpose and authority

The risk committee is established by and among the board to properly align with management as it embarks a risk management program. The primary responsibility of the risk committee is to oversee and approve the company-wide risk management practices to assist the board in:

Overseeing that the executive team has identified and assessed all the risks that the organisation faces and has established a risk management infrastructure capable of addressing those risks

Overseeing, in conjunction with other board-level committees or the full board, if applicable, risks, such as strategic, financial, credit, market, liquidity, security, property, IT, legal, regulatory, reputational, and other risks

Overseeing the division of risk-related responsibilities to each board committee as clearly as possible and performing a gap analysis to determine that the oversight of any risks is not missed

In conjunction with the full board, approving the company’s enterprise wide risk management framework

The risk committee may have the authority to conduct investigations into any matters within its scope of responsibility and obtain advice and assistance from outside legal, accounting, or other advisors, as necessary, to perform its duties and responsibilities.

In carrying out its duties and responsibilities, the risk committee shall also have the authority to meet with and seek any information it requires from employees, officers, directors, or external parties. In addition, the risk committee could make sure to meet with other board committees to avoid overlap as well as potential gaps in overseeing the companies’ risks.

The risk committee will primarily fulfil its responsibilities by carrying out the activities enumerated in Section III of this charter.