Which committee should regularly review and monitor the effectiveness of the risk register and associated controls?

Which committee should regularly review and monitor the effectiveness of the risk register and associated controls?

• A. Risk Committee
• B. Audit Committee
• C. Finance Committee
• D. Risk and CSR Committee

Answer: (D)

Regular governance over risk needs a committee that is responsible for risk management across the whole organization, including how risks are identified, assessed, and mitigated. A committee that combines risk oversight with CSR (corporate social responsibility) signals that sustainability and non-financial risks are integrated into the risk framework, so the effectiveness of the risk register and the related controls are reviewed with a holistic view. This ensures that actions to mitigate risk are current, that residual risk levels are being monitored, and that reporting to the board covers both financial and non-financial areas. The Audit Committee generally focuses on financial reporting and internal controls rather than ongoing risk register maintenance, the Finance Committee centers on financial matters, and a stand-alone Risk Committee might miss the broader CSR context. Therefore, the combined Risk and CSR Committee is best positioned to regularly review and monitor the risk register and its controls.

Regular governance over risk needs a committee that is responsible for risk management across the whole organization, including how risks are identified, assessed, and mitigated. A committee that combines risk oversight with CSR (corporate social responsibility) signals that sustainability and non-financial risks are integrated into the risk framework, so the effectiveness of the risk register and the related controls are reviewed with a holistic view. This ensures that actions to mitigate risk are current, that residual risk levels are being monitored, and that reporting to the board covers both financial and non-financial areas. The Audit Committee generally focuses on financial reporting and internal controls rather than ongoing risk register maintenance, the Finance Committee centers on financial matters, and a stand-alone Risk Committee might miss the broader CSR context. Therefore, the combined Risk and CSR Committee is best positioned to regularly review and monitor the risk register and its controls.