Yakub02
Banned
The Business oversight oversight process:
The risk oversight process begins with the board.
The board is responsible for deciding the company’s risk strategy and business model, and it should understand and agree the level of risk that goes with this. It should then have oversight of the implementation by management of a strategic and operational risk management system.
management has the responsibility for developing and implementing the company’s strategic and routine operational risk management system, within the strategy set by the board and subject to board oversight.
shareholders have responsibility for assessing the effectiveness of the board in overseeing risk. Investors are not themselves responsible for the oversight of risk in the company.
The ICGN Guidelines provide guidance on processes for the oversight of corporate risk by the board and within the company, for investor responsibility and for disclosures by a company on its risk management oversight processes.
Shareholders need information about risk in order to fulfil their responsibility. IFRS 7 Financial Instruments: Disclosure requires companies to make disclosure in respect of specified financial risks including, credit risk, liquidity risk and market risk.
These disclosures could be included in the financial statements or incorporated as part of the risk report (in which case they are still subject to audit even though presented outside the financial statements). These are only part of the risks that a company faces. A risk report should be broader in scope than just the financial risks.
The risk oversight process begins with the board.
The board is responsible for deciding the company’s risk strategy and business model, and it should understand and agree the level of risk that goes with this. It should then have oversight of the implementation by management of a strategic and operational risk management system.
management has the responsibility for developing and implementing the company’s strategic and routine operational risk management system, within the strategy set by the board and subject to board oversight.
shareholders have responsibility for assessing the effectiveness of the board in overseeing risk. Investors are not themselves responsible for the oversight of risk in the company.
The ICGN Guidelines provide guidance on processes for the oversight of corporate risk by the board and within the company, for investor responsibility and for disclosures by a company on its risk management oversight processes.
Shareholders need information about risk in order to fulfil their responsibility. IFRS 7 Financial Instruments: Disclosure requires companies to make disclosure in respect of specified financial risks including, credit risk, liquidity risk and market risk.
These disclosures could be included in the financial statements or incorporated as part of the risk report (in which case they are still subject to audit even though presented outside the financial statements). These are only part of the risks that a company faces. A risk report should be broader in scope than just the financial risks.
