The intricacy of today’s business environment and rapid changes require a stronger risk management function. As such, more organizations are hiring Chief Risk Officers to overcome the risks.
With the growth in business and technological advancement, the risk grows, and having an efficient Chief Risk Officer is crucial. They are in charge of risk-related activities in an organization.
Chief Risk Officer- Introduction
The Chief Risk Officer is tasked with various responsibilities such as analysis and mitigation of risks that could hamper the progress of the organization. They ensure that the organization complies with protocols and standards set forth by the organization. Their job involves reviewing various aspects that could undesirably impact business performance.
The Chief Risk Officer should have a plan to proactively manage the risks with the change in the organization’s operating environment. At times, planning involves modifying the business policies and procedures to address vulnerabilities. The job role of a Chief Risk Officer is indeed quite challenging and varied as well. Based on the organization, the role of Chief Risk Officer can vary, and so the potential risks changes.
Responsibilities of Chief Risk Officer
In times of technological evolution, risk has become part and parcel of business. As such, the Chief Risk Officer needs to design relevant strategies to handle and mitigate the risks. They are more concerned with data protection, risk assurance, and eradicating threats and system vulnerabilities.
The roles and responsibilities of a Chief Risk Officer depend on the organization’s size and the industry you are working. Apart from mentioned above, the duties also include:
- Risk management policies are directly reflected in the organization’s strategic plans
- Timely risk assessment process through risk management expert or in-person
- Prepare documentation related to risk assessment
- Create a budget plan for concerned projects
- Take a thorough look at the audit practices of accounting, compliance reports, and safety measure
- Recognize the threats to the reputation of the organization, which includes blunders in the marketing process
- Documenting risk analysis reports to various stakeholders such as board members, C-suite executives, and employees
- Evaluating the operational risks that might occur due to system failure or human error, which in turn leads to the disruption of business processes. In such a scenario, it’s the responsibility of CRO to formulate strategies to overcome the risks
- Recognize the potential threats to operational efficiency and financial stability of the organization
- Develop risk related plans and formulate strategies to minimize and mitigate risks and also monitoring the progress of the project
Skills required to become a Chief Risk Officer
What education and experience does a Chief Risk Officer require?
- Bachelor’s degree in accounting, business administration, or economics.
- Many employers seek for Master’s candidates in business administration or public administration.
- Candidates aspiring to pursue a career as Chief Risk Officer should possess ample experience in risk management.
- Some organizations provide formal training sessions to prepare highly skilled and efficient professionals to become Chief Risk Officer.
- CRO’s should have two decades of experience in accountancy, law, and economics.
With the rise in the number of tech firms, the growing demand for Chief Risk Officers is also increasing. As a result, financial and non-financial firms see an increase in the hiring of CRO’s with strict regulations and compliance procedures.
According to the Bureau of Labour Statistics US, hiring for these positions will rise by 11% through 2022. As the organizations hire only one position for this job role, there will be fierce competition in the coming days.
With ample preparation for becoming a Chief Risk Officer, you will have a rewarding, lucrative, and profitable career.
The employers of Chief Risk Officers include technology, health care, finance industry, insurance, and investment organizations.
- United States
The average salary of a Chief Risk Officer in United States is approximately $124,331/year, the salary range typically falls between $40,000 to $254,000.
- United Arab Emirates
With online/internet risks becoming more prevalent nowadays, there are ample risk mitigation techniques available. That’s the reason why Chief Risk Officer should possess adequate knowledge on the organization’s technology, network and systems.
Chief Risk Officer has to enhance their skills regularly by taking up industry-recognized IT Security and Governance Training Courses to ensure all the risk management best practices are regularly implemented.
Some of the popular IT Security and Governance certification courses that individuals and enterprise teams can take up are: