Articles: Chief Risk Officers - Roles and Responsibilities

  • Chief Risk Officers: Emerging Trends

    July 31, 2009

    The position of Chief Risk Officer is becoming more prominent in many industries and will likely change the skills and behavior of current risk managers. Some believe that risk managers already possess the necessary skills, while others believe that they need to become more financially literate in order to take on such a strategic position. CROs will be given many strategic and risk-related responsibilities that current risk managers do not have. Optimally, the creation of a CRO position will give risk managers something to aspire to and create a more risk-based approach during strategic decision-making.

  • Financial Industry Assesses Role of Risk in Credit Crisis

    January 01, 2009

    This global survey conducted by KPMG in conjunction with the Economist Intelligence Unit in October 2008 summarizes responses from over 500 world-wide risk management senior officers in the banking industry about the role risk management played in the current economic crisis and how enterprise risk management would be used going forward. The report based on this survey highlight several themes permeating banking culture’s utilization of risk management that helped allow the current credit crisis. The report provides insights as to possible solutions, which many of the respondents are planning to or are currently taking.

  • Role of Risk Managers and Continuity Planning

    October 22, 2008

    Risk management executives have come to the realization that a cohesive corporate risk management strategy is needed in their companies. They are becoming more involved with business continuity planning and helping with preparedness, mitigation, and recovery for operations.

  • The Changing Role of the Finance Organization

    September 30, 2008

    Today’s focus on the rapid embrace of globalization initiatives has substantially increased the complexity and pace of change that risk executives face. Dealing with the volume and complexities of these uncertainties is becoming one of the most pressing strategic concerns. Responsibilities for addressing these challenges often reside with the finance organization within an enterprise, often led by the chief risk officer (CFOs). This study not only summarizes insights about the challenges CFOs face, but it also highlights best practices of finance organizations in high-performance organizations. It notes that the finance organization in most global companies is not sufficiently integrated into the businesses to promote strategy development or value creation and very few are very satisfied with the performance of the finance organization in the management of financial and non-financial risks. Masterful finance organizations identified by the study excelled in creating a shared services structure, a strategic approach to outsourcing and talent management, and the implementation of enterprise resource planning systems

  • Risk Managers Should Have Been Better Prepared

    August 07, 2008

    A risk manager at a large global bank explains how he did not expect the economy to take a turn for the worse. Since the economy was doing so well, it was always a possibility but it was thought inconceivable for the liquidity crisis to happen. This article highlights some of the difficult challenges those in risk management functions face when serving as “goal-keepers” facing internal front-line traders and bankers seeking deal approvals.

  • Risk Manager Trepidation

    June 05, 2007

    Even though some risks may involve unpredictable natural disasters, managers need to implement plans to reduce the impact such an event(s) would have on their business. Risk managers should implement and maintain successful enterprise risk management plans to give them confidence in the management of unpredictable risks.

  • ERM Progress

    June 01, 2007

    Internal Auditor recently published an article titled, Moving Forward with ERM, to provide news on recent developments in ERM and the increasingly important role that chief risk officers (CROs) play in risk management. As CROs and internal auditors work together on risk management issues, it becomes obvious that teamwork and enterprise-wide evaluation of risks is crucial. CROs, in particular, face the demands of providing a successful risk management program that effectively utilizes company resources.

  • CROs Challenged by IT Risks

    September 01, 2005

    The white paper focuses on the increasing dependency companies have on IT processes and the new challenges placed on CROs. Senior executives at various industries were asked to provide insight on digital risks and the role CROs play in tackling such risks.

  • Role of the Chief Risk Officer

    May 01, 2005

    The Chief Risk Officer (CRO) is rapidly becoming one of the most crucial members of the management team. CROs are involved with managing many types of risks faced by a business including regulatory risks, product development risks, and strategic risks.

  • Driving Need for ERM

    March 31, 2001

    Many environmental forces—such as globalization, technology, the Internet, and deregulation—have created uncertainty for twenty-first century businesses. Companies therefore have to re-think business models, core strategies and customer bases. As a result, new issues related to risk and risk management have also evolved. Now, more than ever, executives are confronted with calls for managing risk on an enterprise-wide basis. The idea of risk management is one that has become strategic, rather than defensive, as companies try to mesh risk management with business management.

  • Emergence of Chief Risk Officers

    September 01, 1997

    Many multinational organizations are implementing comprehensive risk management programs. This shift in management is being driven by several different forces. Comprehensive risk management programs aim to identify the plethora of risks faced by an organization and provide methods for mitigation. These risk management programs have lead to the emergence of the chief risk officer, who is key to managing and monitoring enterprise risk.