The Role of Committees
OM-1.2.10
A
licensee's governance structure should be commensurate with the nature, size, complexity and risk profile of its activities. When designing the operational risk governance structure, alicensee must take the following into consideration:(a) Committee structure;(b) Committee composition; and(c) Committee operation.January 2014OM-1.2.11
Sound industry practice for larger and more complex organisations with a central group function and separate business units is to utilise a board-created enterprise level risk committee for overseeing all risks, to which a management level operational risk committee reports. Depending on the nature, size and complexity of the
licensee , the enterprise level risk committee may receive input from operational risk committees by country, business or functional area. Smaller and less complex organisations may utilise a flatter organisational structure that oversees operational risk directly within the board's risk management committee.January 2014OM-1.2.12
Sound industry practice is for operational risk committees (or the risk committee in smaller
licensees ) to include a combination of members with expertise in business activities and financial, as well as independent risk managementJanuary 2014
