Internal audit committee is not a stakeholder when designing a CFP. However, internal audit is involved with periodical reviews on the liquidity stress testing framework and procedures.

B is incorrect: Risk and capital committee is an essential stakeholder responsible for setting the principles and parameters for measuring and assigning risk and capital within the business.

C is incorrect: Different management committees such as the asset-liability committee (ALCO), risk and capital committee, and investment committee are key stakeholders in CFP.

D is incorrect: The operational and technology committee reviews and approves the institution’s technology planning and strategy.

Things to Remember

• Internal audit committee plays a crucial role in providing independent assurance on the effectiveness of an organization's risk management, internal control, and governance processes.
• Risk and capital committee is responsible for overseeing the risk management framework, ensuring alignment with the organization's risk appetite, and making decisions related to capital allocation.
• Management committees, such as ALCO and investment committee, are involved in strategic decision-making processes related to financial risk management.
• Operations and technology committee focuses on ensuring the efficiency and effectiveness of operational processes and technology infrastructure within the organization.