Which of the following BEST describes a Step-up practice related to Effective Audit and Risk Management - Risk Management and Internal Control Framework?
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Which of the following BEST describes a Step-up practice related to Effective Audit and Risk Management - Risk Management and Internal Control Framework?
a. The board establishes a Risk Management Committee, which comprises a majority of independent directors, to oversee the company risk management framework and policies.
b. The board should determine the company level of risk tolerance and actively identify, assess and monitor key business risks to safeguard shareholder investments and the company assets. Internal controls are important for risk management and the board should be committed to articulating, implementing and reviewing the company’s internal control framework.
c. Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives. The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company objectives is mitigated and managed.
d. The board should establish an effective risk management and internal control framework and should disclose the features of its risk management and internal control framework, and the adequacy and effectiveness of this framework.
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