Board Risk Committee Guide

vii How to Use This Guide T his Guide provides Boards and Board Risk Committees (BRCs) of listed companies in Singapore with practical guidance that will help them with their duties and responsibilities in relation to risk management and internal controls. Specifically, it takes into consideration the relevant requirements as set out in the Companies Act (Cap. 50), the Listing Manual of the Singapore Exchange Securities Trading Limited (SGX-ST Listing Manual), and the Code of Corporate Governance. This Guide provides an overview of the concepts and leading practices in risk management. These are neither intended to be comprehensive, nor replace or override any legislative provisions. The leading practices may not be applicable to all Boards and BRCs to the same extent. Since listed companies are of different types, sizes and circumstances, and they face unique situations, Boards and BRCs are urged to adapt and modify these practices as appropriate. Sections of the Guide This Guide comprises six sections. Each section starts with a focus on areas in which BRCs often face uncertainty. It then provides practical guidance on the issues that Boards and BRCs commonly encounter in their oversight of risk. Each section ends with appendices that contain FAQs, case studies, sample documents and other information. The sections are: 1. BRC Composition This section provides guidance on the various governance structures for risk management at both the Board and management level, with specific focus on a separate BRC’s composition, role and responsibilities.