FRM 3. The Governance of Risk Management

Learning Objectives

1) Explain changes in regulations and corporate risk governance that occurred as a result of the 2007-2009 financial crisis.

2) Describe best practices for the governance of a firm’s risk management processes.

3) Explain the risk management role and responsibilities of a firm’s board of directors.

4) Evaluate the relationship between a firm’s risk appetite and its business strategy, including the role of incentives.

5) Illustrate the interdependence of functional units within a firm as it relates to risk management.

6) Assess the role and responsibilities of a firm’s audit committee.