Module 1: Introduction to Risk Governance

📘 Module 1: Introduction to Risk Governance

🎯 Purpose of the Module

To help participants understand the foundational elements of corporate risk governance and the formal role of the Risk Committee under both international (IFRS) and local (Myanmar Companies Law, SECM) frameworks.

🧩 Key Concepts Covered

1. Risk Committee’s Mandate

• Under Myanmar Companies Law and Securities Exchange Commission of Myanmar (SECM) regulations, a Risk Committee is mandatory for public companies and plays a critical role in corporate governance.

• As per IFRS and global corporate governance standards, the Risk Committee is tasked with oversight of enterprise-level risks including financial, operational, compliance, IT, ESG, and reputational risks.

2. Relationship with the Board and Other Committees

• The Risk Committee operates as a sub-committee of the Board of Directors.

• It must collaborate closely with the Audit Committee (for financial reporting/internal control overlaps) and the Internal Audit function (which reports risk findings).

• The committee should report material risks, mitigation plans, and residual risk exposure to the Board regularly (usually quarterly).

3. What is ERM (Enterprise Risk Management)?

• ERM is a structured and continuous process used across an entire organization to identify, assess, manage, and monitor risks.

• It involves the integration of risk awareness into strategic decision-making, operational execution, compliance tracking, and performance measurement.

• ERM frameworks (e.g., COSO ERM, ISO 31000) guide how companies categorize risks (strategic, operational, compliance, financial), define risk appetite, and design response strategies (avoid, accept, reduce, transfer).

🛠️ Suggested Add-ons (optional)

• Visual Slide: Diagram showing the flow of Risk Committee reporting → Board → Audit Committee → Internal Audit.

• Document: Myanmar SECM guidelines summary (can be extracted from public filings).

• Template: ERM Matrix sample (likelihood × impact heatmap).

• Quiz: Simple MCQs for gamified learning.

✅ FAQs – Dual Language (English | Myanmar)

1. What is the main role of the Risk Committee? | Risk Committee ၏အဓိက တာဝန်ကဘာလဲ?
   To oversee enterprise-wide risks and report to the Board. | ကုမ္ပဏီအနှံ့ရှိ အန္တရာယ်များကို ကြီးကြပ်၍ Board ထံတင်ပြခြင်းဖြစ်သည်။

2. How does the Risk Committee relate to the Audit Committee? | Risk Committee က Audit Committee နဲ့ ဘယ်လို ဆက်နွယ်သလဲ?
   They coordinate closely on internal controls and risk reporting. | Internal Control နှင့် Risk Reporting များတွင် အနီးကပ် ပူးပေါင်းဆောင်ရွက်ကြသည်။

3. What is ERM? | ERM ဆိုတာဘာလဲ?
   Enterprise Risk Management system used to identify, assess, and respond to risks. | အန္တရာယ်များကို သုံးသပ်၊ တုံ့ပြန်ရန် အသုံးပြုသော စီးပွားရေးအန္တရာယ် စီမံခန့်ခွဲမှုစနစ်ဖြစ်သည်။

4. Does the Risk Committee act independently? | Risk Committee သည် လွတ်လပ်စွာ လုပ်ဆောင်ပါသလား?
   It reports independently to the Board but works with other committees. | Board ထံသို့ လွတ်လပ်စွာ တင်ပြသော်လည်း အခြားအဖွဲ့များနှင့်ပူးပေါင်းလုပ်ဆောင်သည်။

5. Why is risk reporting important in IFRS? | IFRS မှာ Risk Report တင်သည့်အရေးကြီးချက်ကဘာလဲ?
   Because it ensures transparency, compliance, and protects stakeholders. | ထင်ရှားပြတ်သားမှု၊ စည်းမျဉ်းလိုက်နာမှုနှင့် အကျိုးဆောင်များကိုကာကွယ်နိုင်စေသောကြောင့်ဖြစ်သည်။