Which role does the board's governance committee play in risk oversight?

• A. Sets risk appetite
• B. Approves policies
• C. All of the above
• D. Monitors risk

Answer: (C)

The board’s governance committee oversees risk in a comprehensive way: it helps define how much risk the organization is willing to take (risk appetite), approves the policies that govern how risk is managed, and actively monitors risk through reports, metrics, and dashboards. These elements together create ongoing risk oversight, ensuring that risk-taking stays aligned with strategy, controls are in place, and emerging risks are identified and addressed. Because each of these roles is essential to governance of risk, the best choice is the one that includes all three aspects. Focusing on just one aspect would miss the others, so the all-encompassing option is correct.