Risk Management Agreement Template for England and Wales

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Key Requirements PROMPT example:

Risk Management Agreement

"Need a Risk Management Agreement for our London-based fintech startup to engage an external risk management consultant, focusing on cybersecurity risks and regulatory compliance with FCA requirements, to commence from March 2025."

Document background
The Risk Management Agreement serves as a comprehensive framework for organizations seeking to formalize their risk management processes under English and Welsh law. This document is essential when engaging professional risk management services or establishing internal risk management protocols. It covers key aspects including risk identification, assessment methodologies, mitigation strategies, reporting structures, and compliance requirements. The agreement is particularly crucial in regulated industries and for organizations requiring structured risk management approaches to meet regulatory obligations and stakeholder expectations.
Suggested Sections

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the risk management agreement

3. Definitions: Key terms and their meanings as used in the agreement

4. Scope of Services: Detailed description of risk management services to be provided

5. Risk Assessment Methodology: Agreed approach to identifying and evaluating risks

6. Responsibilities and Obligations: Duties of each party under the agreement

7. Reporting Requirements: Format, frequency, and content of risk reports

8. Term and Termination: Duration and conditions for ending the agreement

Optional Sections

1. Regulatory Compliance: Additional section covering specific regulatory requirements when parties are subject to specific regulatory frameworks

2. International Considerations: Additional provisions for cross-border risk management when risk management spans multiple jurisdictions

3. Insurance Requirements: Specific insurance obligations and coverage requirements when insurance is part of risk mitigation strategy

Suggested Schedules

1. Schedule 1 - Risk Assessment Templates: Standardized forms and methodologies for risk assessment

2. Schedule 2 - Service Level Agreement: Detailed performance metrics and standards for risk management services

3. Schedule 3 - Fee Schedule: Comprehensive pricing structure and payment terms

4. Schedule 4 - Reporting Templates: Standard formats and requirements for risk reporting

5. Schedule 5 - Emergency Response Procedures: Detailed protocols and procedures for handling risk events and emergencies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contract Law Fundamentals: Key legislation including The Contract Act 1999, Common Law principles of contract formation, and The Unfair Contract Terms Act 1977 which form the basic framework for contract validity and enforcement

Financial Services and Markets Act 2000: Primary legislation governing financial services regulation in the UK, establishing regulatory framework and requirements for financial activities

Financial Services Act 2012: Legislative update that reformed the UK financial regulatory structure, including the establishment of the FCA and PRA

Companies Act 2006: Core company law legislation that sets out directors' duties, corporate governance requirements, and company administration rules

FCA Regulations: Financial Conduct Authority regulatory requirements governing conduct, consumer protection, and market integrity in financial services

PRA Requirements: Prudential Regulation Authority standards focusing on financial stability and prudential regulation of banks, insurers, and major investment firms

UK Corporate Governance Code: Set of principles and guidelines for effective board practice and corporate governance in UK listed companies

UK GDPR: Post-Brexit data protection regulation ensuring proper handling and protection of personal data in the UK

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR to regulate personal data processing

Basel III Requirements: International regulatory framework for banks, setting standards for capital adequacy, stress testing, and market liquidity risk

Sarbanes-Oxley Act Compliance: US legislation with international impact, requiring specific internal controls and financial disclosure standards

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety in the UK, setting out employer and employee obligations

Management of Health and Safety at Work Regulations 1999: Detailed regulations requiring employers to assess and manage workplace risks systematically

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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