Governance Structure

The formal arrangement of bodies, roles, and relationships that oversee and direct an organization's activities. This typically includes the board of directors, board committees (such as audit, risk, and remuneration committees), executive management team, and management committees. In RBPM, an effective governance structure provides clear escalation paths for risk issues, ensures appropriate challenge and oversight of risk-taking activities, and maintains the integrity of risk management processes. It establishes the mechanisms through which risk appetite is set, communicated, and monitored.