6.1 INTRO

• ·        One of the benefits of having a formal ERM process is Accountability, that is, clarity on who will be on top of these risks.
• ·        Accordingly, a formal ERM process will require a structured ERM organizational model.
• ·        A risk management organization that enables sound risk governance consists of a variety of structures and relationships.
• It has a strong vertical component descending from the Board through the Board Risk Oversight Committee, the CEO, the Risk Management Executive Team (CRO, CFO, COO, CIO, CLO, CCO, etc.), down through all the levels of the dedicated Risk Management function.
• This backbone is supplemented by related control functions carried out by the Compliance, Legal, Financial Control, Treasury, and Internal Audit departments, as well as other committees such as the Board Audit Committee, a Committee on Compensation, etc.
• Finally, supporting risk routines and responsibilities should be distributed throughout the organization, to all departments and staff
• ·        This model represents the structure of an enterprise risk management team that strives to identify potential hazards before they occur and have a plan for addressing them.

  ·        In this model, the role of the Board of Directors concerning risk management is to regularly receive reports on the status of risk management, perform monitoring of risk management, and deliberate and decide on important fundamental matters relating to risk management.