Board of Directors
RM-1.1.1
The board of
directors oflicensees must take responsibility for the establishment of an adequate and effective framework for identifying, monitoring and managing risks across all its operations.July 2014RM-1.1.2
The CBB expects the board to be able to demonstrate that it provides suitable oversight and establishes, in relation to all the risks the
licensee is exposed to, a risk management framework that includes approving and monitoring policies, systems, tools and controls.July 2014RM-1.1.3
Although authority for the management of a
licensee's risks is likely to be delegated to some degree to individuals at all levels of the organisation, the overall responsibility for this activity should not be delegated from its governing body and relevantsenior managers .July 2014RM-1.1.4
A
licensee's failure to establish an adequate risk management framework to the satisfaction of the CBB will result in it being in breach of Condition 6 of the Licensing Conditions of Section AU-2.6. This failure may result in the CBB withdrawing the licence or imposing other restrictions on thelicensee , or thelicensee being required to inject more capital.July 2014RM-1.1.5
The board of
directors must ensure that there is adequate documentation of thelicensee's risk management framework, and that the documentation is reviewed at least annually to ensure the framework continues to meet the needs of thelicensee and complies with CBB requirements.July 2014
