Risk Management Policy - Risk Management Policy The...

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Risk Management Policy The following sample outlines a set of policies and procedures for a common and systematic approach for managing risk across a company. This approach increases risk awareness, ensures the appropriate management of risks, and makes the business unit risk profiles transparent, thus enabling risks to be compared and aggregated and allowing one to take a portfolio approach to risk management. Prepared By: ______________ Approved By: ______________ Revision Date: ______________ Effective Date: ______________ PURPOSE: This policy sets out the risk management objectives and requirements for the Company X business units. Management is expected to conduct structured risk management in accordance with this policy. SCOPE: The policy is applicable to all Company X business units and divisions. It is also applicable at group level and for group staff functions including Financial, Human Resources, Tax and Legal. POLICY: To structure and formalize the risk management activities across the business units, Company X has developed a risk management framework. The Company X business units are required to implement and use this common risk management framework. Company X takes risks inherent to its strategy in order to achieve its corporate and business units’ objectives and to deliver superior shareholder returns. Company X is developing and implementing a common and systematic approach for managing risk across the company. This approach increases risk awareness, ensures the appropriate management of risks, and makes the business unit risk profiles transparent, thus enabling risks to be compared and aggregated and allowing one to take a portfolio approach to risk management. The Company X business units are expected to actively anticipate and manage their risks, taking advantage of opportunities and containing potential hazards in line with their risk tolerance. The external and internal risks facing the Company X business units are changing constantly and the business units are expected to proactively: Utilize experience through knowledge sharing; Deal with ambiguity, uncertainty and increasing complexity; Prioritize, make decisions and implement solutions on a timely basis; Recognize and act on opportunities as they occur; Ensure results in spite of a changing business unit environment. DEFINITIONS: Risk management policy – the present policy document summarizing the objectives and requirements for risk management; Risk management process – a common four-step process for identifying, assessing, responding to and monitoring business unit risks; Roles and responsibilities – clearly defined responsibilities for managing and reporting on
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Risk Management Policy - Risk Management Policy The...

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