The Effective Risk Committee

Date: On a date of your choice
Location: Delivered as an interactive briefing
Event Code: ERC

Course Details

Board risk committees are becoming increasingly common since the publication in 2012 of the FSA's guidance in this area (which is now contained in SYSC Chapter 21).  The September 2014 FRC Guidance on Risks and Controls has heightened this emphasis.  But once a Board risk committee has been established, it needs to establish its own separate role to ensure it enhances the firm's risk framework, rather than simply becoming another 'talking shop'.

This unique 2 hour briefing will assist those involved in financial services risk committees to develop their effectiveness by considering how they might evaluate their effectiveness, what risk culture they lead and how they interface with other committees to avoid duplication and achieve a co-ordinated approach. 

Agenda:

1.     Responsibilities of the Risk Committee

  • Why have a Risk Committee?
  • The role of a separate Risk Committee
  • Composition of a Board Risk Committee
  • Scope and key elements of your Terms of Reference – what the rules say  (SYSC 21) and what the FRC thinks

 2.     Fulfilling the oversight responsibilities

  • Advice to the Board on risk strategy and risk governance
  • Risk appetite statements
  • Oversight of the risk framework
  • Oversight of stress and scenario testing and risk capital
  • Oversight of risk due diligence on material transactions
  • Risk based performance weightings and incentive structures
  • Promoting, assessing and embedding an appropriate risk culture   

3.       Increasing the effectiveness of the risk committee

  • Interface with audit committee , remuneration committee and  the main Board
  • Specifying and obtaining the right Risk Management Information
  • Using this information to inform strategy and to take a forward looking approach
  • Supporting the development of a more resilient organisation
  • Assessing the effectiveness of the risk committee

4.       Key current issues for risk committees

  • FCA focus on 'conduct risk'
  • Risk reporting changes - FRC and other guidance      

Who should attend?

This is an essential event for those who are members of the Risk Committee or responsible for reporting to this Committee.

Key Benefits

This focused briefing will help both executive and non executive directors understand their risk management and identify the practical steps to fulfilling them.

  • Recognise the key role of the risk committee and how this relates to the role of the audit committee.
  • Know how to manage the relationships between the risk committee, the risk function, the Chief Risk Officer and the main Board.
  • What the main objectives of the risk committee should be in relation to the risk framework, risk appetite and risk culture and how these can be achieved in practice.
  • How the risk committee can add value by receiving the right information, taking a 'forward looking approach' and providing the right balance between challenge and assurance.
  • Gain insights into that thorny question of risk appetite.
  • Consider whether you receive the right information to allow you to oversee risk effectively 

Your Consultant – Eithne McManus

As an expert in risk management and insurance, Eithne consults with firms on finance, actuarial and audit matters. She leads many training events to keep Directors and senior managers up to date on these topics.  Her business experience allows her to understand the practical issues that firms face and to demonstrate ways to improve on the status quo.

She has been a consultant for over 7 years providing consultancy services to financial services companies in the areas of enterprise risk management, capital assessment (including Solvency 2) and outsourcing.  She is also a non-exec director of a small mutual insurer, where she sits on both the risk and audit committees.

A qualified actuary, Eithne spent much of her career with City of Westminster Assurance, latterly as Chief Financial Officer then Chief Executive. After the sale of CWA to Chesnara, Eithne assumed responsibility for risk management within the Chesnara group as a whole.

 

 

 

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