Chief Risk Officer
Contents
Definition
The Chief Risk Officer is a senior management position, typically found in regulated large financial institutions such as banks and insurance companies
Roles and Responsibilities
The CRO has primary responsibility[1] for overseeing the development and implementation of the firms Risk Management function. For regulated banks this function must be sufficiently independent from the rest of the firm.
Detailed responsibilities of the CRO includes:
- the ongoing strengthening of staff skills
- enhancements to risk management systems
- risk management policies
- risk management processes
- sponsoring the development of quantitative models
- setting up Risk Reporting
In addition any other functional requirements necessary to ensure that the firm's risk management capabilities are sufficiently robust and effective to fully support its strategic objectives and all of its risk-taking activities.
The CRO is responsible for supporting the management board in its engagement with and oversight of the development of the firm's Risk Appetite and RAS and for translating the risk appetite into a risk limits structure.
The CRO, together with management, should be actively engaged in monitoring performance relative to risk-taking and risk limit adherence.
The CRO’s responsibilities also include managing and participating in key decision-making processes (eg strategic planning, capital and liquidity planning, new products and services, compensation design and operation).
Reporting Context
- Various top level risk / executive committees
Skills
Knowledge
Qualifications
Regulatory Aspects
See Also
Semantic Data
- The ESCO Code to which this job best corresponds to (as the most detailed leaf of the tree)
References
IsDefinedBy URI of an entity that is defined via an imported vocabulary. | https://www.openriskmanual.org/ns/rfo/index-en.html + |