Element 05×Finance and Legal
Finance & Legal in Risk
Risk Assessment and Control
What Finance & Legal owns here
This element holds financial and legal risk — financial risk, fraud risk, legal risk, sanctions exposure and dispute risk.
Example documents, by tier
Policy 1
- Counterparty Credit Risk PolicyIn 1 of 3 operator registersCompany-wideAlso in EI PSM · 06 Hazard identification and risk assessmentNot process safetyNot safety case critical
Standard 1
- Enterprise Risk Management StandardIn 2 of 3 operator registersCompany-wideAlso in EI PSM · 06 Hazard identification and risk assessmentNot process safetyNot safety case critical
Process, procedure, work instruction 1
- Risk Management for Financial ReportingIn 1 of 3 operator registersCompany-wideAlso in EI PSM · 06 Hazard identification and risk assessmentNot process safetyNot safety case critical
Guidance · outside the system 2
Informative, not a “shall”. These belong in the knowledge base, not the management system. How this works →
- Guidance on Financial Crime RisksIn 1 of 3 operator registersCompany-wideAlso in EI PSM · 06 Hazard identification and risk assessmentNot process safetyNot safety case critical
- Enterprise Risk Assessment of a Business CaseIn 1 of 3 operator registersCompany-wideAlso in EI PSM · 06 Hazard identification and risk assessmentNot process safetyNot safety case critical
Why these belong here
"Without a substantive Element 5 owned by Finance and Legal, the company has no structured visibility of financial and legal exposure — only the unpleasant surprise."
What does not live here
- →The standards setting acceptance thresholds — (Policies and Standards)E02 Policies
- →The procedures executing the controls — (Plans and Procedures)E07 Procedures
- →The audit of risk-control effectiveness — (Assurance, Review and Improvement)E10 Assurance