Which body is described as overseeing the organisation's risk management framework and monitoring key strategic risks?

Which body is described as overseeing the organisation's risk management framework and monitoring key strategic risks?

• A. Risk Reporting System
• B. Audit Committee
• C. Risk Appetite
• D. Reputational Risk

Answer: (A)

Oversight of the risk management framework and monitoring of key strategic risks is a governance duty handled by the Audit Committee. This board-level body operates independently from management to scrutinize risk policies, internal controls, and the overall risk framework, and it tracks major exposures through risk reporting and key risk indicators, escalating issues to the board as needed. A risk reporting system is a tool for collecting and presenting risk information, not a governing body. Risk appetite is the amount of risk the organisation is willing to accept, and reputational risk is a type of risk—neither describes a body responsible for oversight.

Oversight of the risk management framework and monitoring of key strategic risks is a governance duty handled by the Audit Committee. This board-level body operates independently from management to scrutinize risk policies, internal controls, and the overall risk framework, and it tracks major exposures through risk reporting and key risk indicators, escalating issues to the board as needed. A risk reporting system is a tool for collecting and presenting risk information, not a governing body. Risk appetite is the amount of risk the organisation is willing to accept, and reputational risk is a type of risk—neither describes a body responsible for oversight.