What is the role of 'Risk Management Committee' of the Board in a Bank ?

The Risk Management Committee of the Board in the Bank is fundamentally responsible for approval of applicable risk policies and review of certain associated frameworks, analysis and reporting established by the management. The Risk Committee oversees reputational risks and risk management is within its scope of responsibility. The role of the Risk Management Committee is defined as making recommendations to the Board on the risk management system designed to enable an early detection of the risks and their effective supervision and management. It monitors capital adequacy, stress testing outcomes, and the Internal Capital Adequacy Assessment Process (ICAAP). The RMC ensures compliance with regulatory and prudential norms and reviews risk-related regulatory observations. It also oversees the functioning and independence of the Chief Risk Officer and promotes a strong risk-aware culture across the bank.