Risk committee charter

Wednesday, 01 January 2020

The risk committee assists the board in the oversight of the company’s risk management policies and processes.


Principle 7 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations1 (ASX Principles) states: “A listed entity should establish a sound risk management framework and periodically review the effectiveness of that framework”.

The ASX Principles suggest that the role of a risk committee is usually to review and make recommendations to the board in relation to:

  • the adequacy of the entity’s processes for managing risk; 
  • any incident involving fraud or other break down of the entity’s internal controls; and 
  • the entity’s insurance program, having regard to the entity’s business and the insurable risks associated with its business.

Where a company does not have a risk committee, then the audit committee may be tasked with exercising that function and thereby have the responsibilities of a risk committee.

Latest Director Tools

This is of of your complimentary pieces of content

This is exclusive content.

You have reached your limit for guest contents. The content you are trying to access is exclusive for AICD members. Please become a member for unlimited access.