The Risks of Combining ERM and Audit Committees

It may be tempting to combine the board's enterprise risk management (ERM) committee with the audit committee, as to do so cuts down on number of committees and the amount of time looking at risk. However, in the 'Three Lines of Defense' philosophy supported by the financial services industry, the roles and responsibilities of ERM versus audit are quite different. Plus, audit should independently review ERM; reporting the results to the same committee that provides ERM oversight would appear to impact some level of independence. In this condensed discussion, the risk of combining ERM and audit committees is reviewed and facts shared.

Covered Topics:

  • ERM and Its Focus
  • Audit Committees and Their Focus
  • Critical Division of Risk Defense
  • The 3 Lines of Defense
  • Key Considerations
Connection Error #D55. For immediate assistance, please use our online chat (lower right corner of this page).
The cost of subscription is determined by the asset size of your institution. In the case of holding companies or banks under common ownership, the aggregate asset size of participating banks determine the subscription tier.
   Non-bank or < 499M - $125 per month   
   $500M - 999M - $250 per month   
   $1 - 5B - $425 per month   
   $5 - 10B - $600 per month   
   > 10B - $850 per month