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:
“Is it not the chief disgrace in the world, not to be an unit;Mnot to be reckoned one character;Mnot to yield that peculiar fruit which each man was created to bear, but to be reckoned in the gross, in the hundred, or the thousand, of the party, the section, to which we belong; and our opinion predicted geographically, as the north, or the south?”
—Ralph Waldo Emerson (1803–1882)
“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)
“A true military officer is in one particular like a true monk. Not with more self-abnegation will the latter keep his vows of monastic obedience than the former his vows of allegiance to martial duty.”
—Herman Melville (1819–1891)