RISK QUOTE: For the want of a nail, the shoe was lost; for the
want of a shoe the horse was lost; and for the want of a horse
the rider was lost, being overtaken and slain by the enemy, all
for the want of care about a horseshoe nail.
—BENJAMIN FRANKLIN, SCIENTIST,
PUBLISHER, AND DIPLOMAT
RISK QUOTE: If a man does his best, what else is there?
—GEORGES. PATTON, U.S. ARMY GENERAL
Acentral risk management committee (RMC) is a formal body established to provide advice on ERM. It is one tool for involving the board and senior managers in an ERM program. In most formulations, we can identify common characteristics of such a committee. Its purpose is to advise senior management and the board on policies to manage the full range of risks facing the enterprise. This broadens the advising role beyond the head of the central risk function. The committee should meet periodically to discuss risks and to make recommendations. If committee members are using