You know the most common C-suite roles: CEO, COO, CIO, CFO, CMO, and the rest. From head of operations to the top of the marketing food chain, each of these roles plays a unique and crucial part in the functioning of your company. Another role that’s seen a rise in recent years—and especially with the year we’re currently having—is that of the Chief Risk Officer (CRO). This role is crucial to the successful ongoing management and operation of your business.
Here are few of the most commonly asked questions about the role of the Chief Risk Officer (CRO):
What Does A CRO Do?
The CRO’s role is to manage risk across the company. This role originated in the financial industry but is starting to see traction across other industries as well—accounting for technical & regulatory risks is a universal concern. This individual will deal with unexpected risks, like the current pandemic, and long-term risk management—like ensuring compliance, financial stability, technological security, and more. The duties of this role can be many and varied, but ultimately their job is to protect you and your company from anything that could pose a risk, now or later.
In wealth management, the CRO serves to manage the balance of risk and return that you and your team walk daily. Between inflation, longevity, market fluctuation, and other investment risks, this individual provides a touchstone of experience-based caution and advice for managing these tricky scenarios.
Why Does My Company Need A CRO?
Your CRO will be uniquely suited to one of the most overlooked aspects of c-suite management: Evaluating and avoiding long-term risk. Risk management is a full-time occupation and having someone dedicated to this task brings a much-needed voice of reason and caution to many high-flying c-level discussions. Your team will gain a much more solid grasp of the risks involved with every potential move and take appropriate precautions. This will help you solve problems before they start!
When Should I Bring On A CRO?
There’s no time like the present. During COVID-19, many companies have struggled with short-term risk mitigation and crisis management bleeding into long-term pivots and business model overhauls. Operations rarely bounce back to normal immediately after a crisis, and it’s essential to continue to manage all variables carefully until such time. When your finances are challenged, when you may face a serious operational difficulty, or when your strategies have to change unexpectedly, you want a CRO on your side.
The future is a risky place, and a CRO can help you and your company face the uncharted waters ahead with confidence.
A dedicated C-level executive with expertise in crisis management, risk mitigation, and strategic guidance against financial risks may be exactly what your company needs to make it through times like these. In a year of surprises, it’s good to have someone you can count on to lead the way calmly, efficiently, and with a clear head. We’ve got connections with dozens of executive-level candidates just like this, so if you’re thinking about adding one to your team, don’t hesitate to get in touch.