What is risk oversight?

Risk oversight refers to the process of monitoring, managing, and guiding an organization's risk management activities to ensure that risks are identified, assessed, and mitigated effectively. It typically involves the oversight of risk policies, frameworks, and reporting to ensure the organization remains within its risk appetite and complies with regulatory requirements. Risk oversight functions are often carried out by a board committee or dedicated risk management team, providing assurance that strategic objectives are not unduly threatened by unforeseen risks.