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:
“That so few now dare to be eccentric, marks the chief danger of the time.”
—John Stuart Mill (1806–1873)
“Risk! Risk anything! Care no more for the opinion of others, for those voices. Do the hardest thing on earth for you. Act for yourself. Face the truth.”
—Katherine Mansfield (1888–1923)
“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)