Hi In chapter 2, there are separate sections on the risk subcommittee and the central risk function. I was wondering what is the distinction between these two? Or could they be one and the same? Thanks
The Risk Subcommittee is a sub-group of the Board. Their role is to oversee the risk management strategy on behalf of the Board. The Central Risk Function is the team which carry out the risk management polices on a day-to-day basis (ie an executive role). They will produce reports for the Risk subcommittee. The distinction is similar to other Board subcommittees. The Audit subcommittee is different to the finance function. The Remuneration subcommittee is different to the HR function.
