The case against committees is that they are slow. The case for them is that the alternative is a firm whose risk position is the mood of one person.
A committee's value lies in requiring a written case. The discipline of having to defend an assumption in front of colleagues who are not invested in it surfaces the assumption that would otherwise go unexamined.
This is why the composition matters. A committee drawn entirely from the origination side reviews its own work and approves it. Independence of the reviewing voice is the whole mechanism.
Insights are published for general information only. They are not investment advice, not a recommendation, and not an offer of any product or service.