Board Risk Committee Guide

viii 2. BRC Agenda This section sets the scope of the BRC, including its annual work plan, periodic meetings, and training for BRC members. 3. Risk Universe The risks faced by each company are many and diverse. Typically, this risk universe is framed by identifying the risks relevant to the company and categorising them. This section describes the risk context and environment in which companies can operate, the characteristics of risks, and the common types and categories of risks. 4. Risk Management and Internal Control Systems The Board is responsible for ensuring that management implements adequate and effective risk management and internal control systems. This section explains the importance and elements of an Enterprise Risk Management framework to codify and integrate the company’s approach to managing risks. 5. Sources of BRC Assurance The Board is required to review and comment on the adequacy and effectiveness of the risk management and internal control systems. This section describes what is involved in the review, and outlines the different layers (or lines of defence) of an assurance framework that the Board can rely on to form and support its conclusions. 6. Disclosure Requirements The last section lists the key disclosure requirements that are relevant for Boards in relation to risk management and internal controls. The list is only meant to be used as a reference; it is not intended to be exhaustive. Boards and BRCs are therefore advised to refer to the relevant sections in the Companies Act, the SGX-ST Listing Manual, and the Code of Corporate Governance, as appropriate.