What is the role of CRO? - Letsdiskuss
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Posted 23 Mar, 2019 |

What is the role of CRO?


@josephd | Posted 25 Mar, 2019

The chief risk officer's responsibilities will vary depending on the size of the organization and industry. Generally, the CRO is responsible for the company's risk management operations, including overseeing the company's risk identification and mitigation activities

Fairy Kumar

@Blogger | Posted 25 Mar, 2019

The role of chief risk officer has received a lot of attention within the risk management community, as well as from the plants and general management audiences. Articles on CRO or chief risk officers anni RM appear frequently in trade publications such as risk magazine and risk and insurance but have also been covered in general Publications.
Today, the role of the CRO has been widely adopted in risk intensive businesses such as Financial Institutions, energy firms, and non-financial corporations with significant investment activities and/or foreign operations. Today, it can be estimated that as many as up to 80% of the biggest us Financial Institutions have CROs.

The recent financial and economic meltdown have increased the demand for comprehensive ERM frameworks. Indication of this increased demand, executive management training programs in a r m are increasingly offered by leading business schools. For example November 2010 Harvard Business School implemented a five-day program designed to train CEOs, COOs, and CROs in managing risk as corporate leaders there have been to other sessions to date, one in February 2012 and 1 recently in February 2013.

In general, it can be said that the office of the CRO is directly responsible for:

1. Providing the overall leadership, vision, for enterprise risk management.
2. Establishing an integrated risk management Framework for all aspects of risks across the organisation.
3. Laughing risk management policies, including the qualification of the firm's risk appetite through specific risk limits.
4. Implementing a set of risk indicators and reports, eating losses and incidents, exposures and early warning indicators.
5. Allocating economic capital to business activities based on risk, and optimising the company's risk portfolio through business activities and risk transfer strategies.
6. The company's risk profile to key stakeholders such as the board of directors, regulators, stock Analysts, rating agencies, and business partners.
7. Developing the analytical, systems, and data management capabilities to support the risk management program.
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Jagriti Malik

@Jagriti | Posted 24 Mar, 2019

CRO stands for chief risk officer. Also known as chief risk management officer or risk management officer.

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 is also responsible for implementing operational risk management.

Siddhi Agarwal

@student | Posted 23 Mar, 2019

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.