Posted 23 Mar, 2019 | Finance
What is the role of CRO?Add Answer
Role of CRO-
CROs are uniquely positioned to not only manage and mitigate business risks, but to also help the business take advantage of the upside opportunities for innovation and growth.
CRO, the abbreviation for Chief Risk Officer, is an integral part of an organisation. The CROs maybe known as Chief Risk Management Officers or as Risk Officers as well. Although the responsibilities vested on these position holders vary from organization to organization, some of the major roles common for all are quite common.
The main role for CROs is to assess a prospective threat that is about to appear in front of the organization and find a significant solution to these issues. These threats maybe because of political changes, competitive changes, technological changes.
Threats and risks in business can affect the productivity and profitability of an organization to massive scales, negatively. Position of a CRO is made even more important in a C-level hierarchy by various legislation like Dodd-Frank Wall Street Reform And Consumer Protection Act of 2010.
The main concerns of a CRO generally involve issues such as Insurance, IT Security, internal auditing, fraud prevention, financial auditing etc. Generally the Enterprise Risk Management (ERM) programs are headed by the CROs of the organization. Since these days IT department has become integral part of every organization. Therefore CROs must be capable of handling the risk of hackers and data piracy etc.
They are designated to develop risk maps and action plans that are strategic and beneficial to the organization. They are supposed to develop and disseminate risk analysis and progress reports to higher authorities. They are also asked to integrate risk management priorities into company's overall strategic planning. They also determine the company's risk appetite and advise the amount of risk that the company should take.