FREE TOOL: Risk and Compliance Committee Charter

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.

We work together with our investment management clients to customize our solutions; however, the one tool we use for everyone is governance - for small firms and large, for mutual funds or private equity firms - all firms manage themselves better with well-designed governance. 

Of course, we've all experienced committee meetings that make us want to poke our eyes out.  We sit impatiently wishing we were somewhere else actually doing something valuable.  To combat that very real and fair criticism, you need a high standard for what success looks like.

  • Do you leave the committee meeting more informed?
  • Do you value the thoughts of the other committee members?
  • Is the workload of the committee reasonable and prioritized?
  • Do you believe your time is being well-spent?

If your answer to those questions is YES, then your committee is working well and doing its job for your firm.

If your answer to those questions is NO, then your committee needs to level up.

Our Work is Rooted in Well-founded Corporate Governance Principles.  

We design governance frameworks to help firms manage themselves (Management Committee), provide demonstrable trade desk oversight (Trade Oversight Committee), help ensure that fair valuation is consistent (Valuation Committee), and to identify, manage, and support risk assessment and compliance program (Risk and Compliance Committee). 

Use a Charter to Stay on Track

We advise firms to use a written committee charter - like the shown here - to help create consensus on the purpose, composition, rules of the road, and duties of the committee.  A charter is just the first step - an effective committee needs to function as a decision-making mechanism, and that takes discipline and leadership.

If you're looking for a good starting place, download our Risk and Compliance Committee Charter to level up your governance framework.