What is the primary function of a risk management committee?

The primary function of a risk management committee revolves around overseeing risk policies and ensuring that these policies align with the organization's overall objectives. This committee plays a crucial role in identifying, assessing, and managing risks that could affect the company’s ability to achieve its goals. By focusing on the alignment of risk management strategies with business objectives, the committee ensures that potential threats are mitigated effectively while also supporting the organization in seizing opportunities. This alignment is essential for fostering a culture of risk awareness and resilience within the organization.

While writing new company policies, updating organizational structure, and performing technical risk assessments are important functions within an organization, they do not specifically capture the overarching duty of a risk management committee, which is more focused on governance and strategic oversight regarding risks.