Transcript CRO roles and attributes

Role of the Chief Risk Officer
13th October 2015
Chief Risk Officer
1. How has the role developed?
2. Skills and competencies?
3. The CRO’s challenge
4. IRM professional standards
5. What does a CRO therefore look like?
2.
Is a Chief Risk Officer born or made?
What are the key aspects of CRO’s competency?
Experience
Leadership
Education
Sector
knowledge
• How much experience?
• How many roles?
• What level of exposure to executive and Board
interactions?
• What primary and secondary education or qualifications?
• Time spent in or with which functions?
• Is insurance sector experience critical?
3.
Chief Risk Officers – a history
• Chief Risk Officers have been
existence for nearly 20 years
• The role has taken time to gain
traction and is still most prevalent
in Finance Services, Energy and
Commodity businesses
• 2008 crisis and corporate
governance changes resulting
have raised the CRO profile.
• CRO’s are rarely Board-level
appointments. The majority are
senior executives reporting to the
CEO and/or risk committee.
4.
Evolving role of the CRO?
Has anything really changed since 2005?
5.
The CRO’s challenge?
6.
Its about “Change management”
• “Many organisations have learnt
that the introduction of risk
processes is insufficient to
fundamentally change
behaviours…
• To encourage desired behaviours
often requires a campaign of
change management…
• CRO’s and Heads of Risk should
be facilitators with an ability to
influence change in risk-related
behaviours.”
• This implies a different skill set to
that held by many current risk
professionals
7.
IRM Professional standards
• IRM have defined functional
professional standards against 4
competency levels:
•
Leadership
•
Senior
•
Management
•
Support
• IRM have also defined 6 behavioural
competencies
•
Courage and confidence
•
Influence and impact
•
Integrity, ethics and values
•
Innovation and catalyst
•
Building capability
•
Collaboration and partnering
8.
What does a CRO therefore look like?
• Senior-level executive capable of contributing across a
wide range of business issues
• Not necessarily an expert on all areas of risk or someone
able to model risks
• Someone who gathers an excellent team of risk experts
and professionals around them
•
•
•
•
With the ability to challenge management when necessary
Someone with the CEO’s ear
Gravitas and credibility with peers
Overall - a communicator and a facilitator
9.
What about the missing ingredient?
•
•
•
•
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Gravitas?
Communication?
Consultative style?
Stakeholder management?
Marketing?
10.
Any questions?
Alex Hindson
Chief Risk Officer
Argo Group
P +44 (20) 207 712 7654
[email protected]
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