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Member, Beacon International Group, Ltd.
Risk committees represent a “proven process for promoting a risk-aware workforce,” according to a report issued Monday by the Risk & Insurance Management Society Inc.
The report, “Exploring the Risk Committee Advantage,” includes observations from four senior risk professionals on how risk committees function and their value to their organizations.
The report says that risk committees come in three distinct varieties: a committee of the board, a C-suite risk committee and an operational risk committee. “The type of risk committee that best suits an organization is a function of who should have governance or oversight,” according to the report.
Risk committees present risk professionals with the opportunity to take on three different roles: spectator, facilitator or coordinator. The report says that in most organizations, the risk professional functions as either facilitator or coordinator, or some combination of both roles. In a spectator role, a risk professional refrains from influencing the risk dialogue.
The report says that risk committees are often linked to the practice of enterprise risk management “with a holistic view and understanding of the organization’s operations.” But the report adds that “perhaps more importantly, it provides a direct connection with members from those business units to discuss imminent threats and opportunities.”
Each risk committee is different, the report notes. “But what all risk committees share in common is a proven process for promoting a risk-aware workforce that is prepared to make intelligent decisions to enhance the organization’s ability to analyze its operations and achieve and exceed strategic objective,” the report says.
BOCA RATON, Fla. — Captive insurers can be the foundation of an enterprise risk management program for companies seeking to advance their risk management strategies, captive experts say.