What is the primary function of a risk management committee within an organization?

The primary function of a risk management committee within an organization is to oversee risk management efforts and ensure compliance with applicable laws and regulations. This committee typically assesses the organization's risk exposure, identifies potential risks, and develops strategies to mitigate those risks. By doing so, it plays a crucial role in safeguarding the organization's assets and its reputation.

Effective risk management not only helps in minimizing potential losses but also ensures that the organization's operations align with regulatory requirements. This function is essential because organizations face various risks, including financial, operational, compliance, and reputational risks, and having a dedicated committee helps to centralize and streamline risk oversight.

In contrast, while increasing profitability and enhancing marketing strategies may be important for an organization, these are not the primary roles of a risk management committee. Additionally, establishing customer loyalty programs, though beneficial for business growth, falls outside the scope of risk management functions.