Listing of Principles :
2 The Risk Management Function
Principle no. 10: Role of the risk management function
There should be an independent risk management function with clearly defined responsibilities, reporting directly to the risk management group.
In certain organisations the risk management function may equate to the treasury.
Principle no. 11: Role of the head of risk
There should be a head of the risk management function that is responsible for ensuring day-to-day measurement, monitoring and evaluation of risk across the company.
Principle no. 12: Prudent selection of risk management instruments
The risk management function should only assume the management of risk, using risk management instruments and techniques approved for use in the treasury policy and of which it has proven ability to independently:
identify, quantify and re-value the risk of the instruments ongoing,
trade the component parts of the risk management structure efficiently, and are able to report the results of comprehensively.
Principle no. 13: Ethical behaviour of the risk management function
The risk management function should in its dealing with banks and other counter parties adhere to the ethical standards determined by the Irish Association of Corporate Treasurers.
