The structure of roles, committees, policies and reporting through which an organisation oversees risk. It sets who decides, who challenges and who is accountable.
Where you will meet it
Risk governance comes up in 4 learning outcome notes across the FRM syllabus.
A few of them:
The Governance of Risk Management FRM Part I · Foundations of risk management
“Good risk governance is the structure of oversight, responsibility and accountability around risk-taking, and it rests on a few repeatable practices.”
Governance FRM Part II · Credit risk measurement and management
“Best-practice credit risk governance rests on four principles, remembered as Guidelines, Skills, Limits and Oversight.”
Risk Governance FRM Part II · Operational risk and resilience
“The board carries ultimate responsibility for operational risk governance, although it may delegate work to committees.”
Integrated Risk Management FRM Part II · Operational risk and resilience
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