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)
“A monarch must sometimes rule even himself: he who wants everything must risk very little.”
—Pierre Corneille (1606–1684)
“It is now time to stop and to ask ourselves the question which my last commanding officer, Admiral Hyman Rickover, asked me and every other young naval officer who serves or has served in an atomic submarine. For our Nation M for all of us M that question is, “Why not the best?””
—Jimmy Carter (James Earl Carter, Jr.)