What is the definition of a policy according to Risk Management?

The risk governance framework is a comprehensive, written approach with policies and procedures enabling financial institutions to implement the framework across the entire financial institution.

What is the definition of a policy according to Risk Management?
A . Covers specific aspects of the risk governance framework and AML/CTF operations must be documented and subject to periodic review, typically annually, by the respective committee.
B. A high-level statement of intent defining the scope of coverage, identifying areas that are included and those which are explicitly excluded which are governed by the risk appetite statement.
C. Has a responsible owner for ensuring that it remains unchanged in regulations and guidance from the business owner/s.
D. All of the above.

View Answer

Answer: B

Explanation:

For Risk Management, a policy is a high-level statement of intent defining the scope of coverage, identifying areas that are included and those which are explicitly excluded which are governed by the risk appetite statement.