Sign in or register to instantly access

Don't have an account?

Sign up here

 

Judgement calls

Sponsored by Ernst & Young, a panel of risk management professionals convened in London to discuss the impact of the new regulation and the changing role of the chief risk officer.

Risk: How has the role of the chief risk officer (CRO) changed in the wake of the financial crisis? What lessons can be learned?

Price Sloan (PS): Regardless of company, the CRO role is taking on a more strategic look at the business. The responsibilities of the CRO have changed. We are looking at things differently: don't assume communication has occurred. Get people talking. Break down silos. Bring new team mates together to make decisions. In addition to the day-to-day risk management, think about what may occur, what needs to be done. Organisations with the most effective risk management are those where the CRO reports into the chief executive, who can really empower the risk function. At my organisation, we consider risk holistically. It creates a consistent approach to risk controls, regardless of a positive or negative turn in the economic cycle.