The chief risk officer (CRO) or chief risk management officer (CRMO) of a corporation is the executive accountable for enabling the efficient and effective governance of significant risks, and related opportunities, to a business and its various segments. Risks are commonly categorized as strategic, reputational, operational, financial, or compliance-related. CRO's are accountable to the Executive Committee and The Board for enabling the business to balance risk and reward. In more complex organizations, they are generally responsible for coordinating the organization's Enterprise Risk Management (ERM) approach.
The position became more common after the Basel Accord, the Sarbanes-Oxley Act, the Turnbull Report
A main priority for the CRO is to ensure that the organisation is in full compliance with applicable regulations (chief compliance officer). They may also deal with topics regarding insurance, internal auditing, corporate investigations, fraud, and information security. CRO's typically have post-graduate education and 20+ years of business experience, with actuarial, accounting, economics, and legal backgrounds common.
Famous quotes containing the words chief, risk and/or officer:
“Who’ll be chief mourner?
I, said the dove,
I’ll mourn for my love,
I’ll be chief mourner.”
—Mother Goose (fl. 17th–18th century. Who killed Cock Robin? (L. 33–36)
“We saw the risk we took in doing good,
But dared not spare to do the best we could
Though harm should come of it”
—Robert Frost (1874–1963)
“I who have cursed
The drunken officer of British rule, how choose
Between this Africa and the English tongue I love?
Betray them both, or give back what they give?
How can I face such slaughter and be cool?
How can I turn from Africa and live?”
—Derek Walcott (b. 1930)