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:
“Even if matter could do every outward thing that God does, the idea of it would not work as satisfactorily, because the chief call for a God on modern men’s part is for a being who will inwardly recognize them and judge them sympathetically. Matter disappoints this craving of our ego, so God remains for most men the truer hypothesis, and indeed remains so for definite pragmatic reasons.”
—William James (1842–1910)
“Man is so muddled, so dependent on the things immediately before his eyes, that every day even the most submissive believer can be seen to risk the torments of the afterlife for the smallest pleasure.”
—Joseph De Maistre (1753–1821)
“Any officer fit for duty who at this crisis would abandon his post to electioneer for a seat in Congress ought to be scalped.”
—Rutherford Birchard Hayes (1822–1893)