What is the role of a risk management committee?

The role of a risk management committee is fundamentally centered around overseeing an organization’s risk management processes and providing guidance on decisions related to risk. This committee typically comprises individuals from various departments and areas of expertise within the organization, ensuring a comprehensive approach to identifying, assessing, and mitigating risks.

One of the key functions of the committee is to evaluate the effectiveness of the organization's risk management framework and policies, ensuring they align with the strategic goals and objectives. By doing so, the committee helps ensure that risks are appropriately managed, promoting a culture of risk awareness throughout the organization.

In addition, the committee plays a crucial role in establishing risk tolerance levels and making informed decisions about risk acceptance, transfer, or mitigation strategies. This oversight is vital in safeguarding the organization's assets, reputation, and overall viability in an ever-changing risk landscape.

The other choices focus on operational aspects or marketing efforts, which do not align with the primary purpose of a risk management committee, thus highlighting the specific and strategic nature of the committee’s work in addressing potential challenges and threats within the organization.