🔖 Risk committee terms of reference

The Risk Committee Terms of Reference template for an AIM Listed Company under UK law provides a comprehensive document outlining the specific roles, responsibilities, and functions of the Risk Committee within the company's governance structure.

The template highlights the legal requirements and best practices for establishing and operating the committee, ensuring that it aligns with the laws and regulations governing AIM Listed Companies in the United Kingdom. It outlines the committee's purpose, objectives, and composition, explaining the membership criteria, qualifications, and expertise required for its members.

The document details the committee's scope and authority, emphasizing its role in identifying, assessing, and monitoring various risks faced by the company. It delves into the committee's responsibilities in evaluating the effectiveness of the company's risk management policies, procedures, and internal controls, as well as providing guidance on risk monitoring and reporting systems.

Additionally, the template establishes the committee's relationship with other key stakeholders, such as the board of directors and senior management, defining the lines of communication, reporting mechanisms, and escalation procedures. It emphasizes the provision of regular reports and updates to the board, ensuring active engagement and visibility of the committee's work.

Furthermore, the template covers the committee's meeting procedures, including frequency, quorum requirements, agenda setting, and minutes documentation. It promotes the establishment of robust meeting practices and the availability of resources, such as external advisors, to support the committee's activities.

Overall, the Risk Committee Terms of Reference template aims to offer a robust framework for AIM Listed Companies to establish an effective risk management structure, enabling them to proactively identify, assess, and mitigate risks, ultimately enhancing their overall corporate governance and compliance practices.