“Board oversight of risk is an area of constant conversation and focus.” – Survey respondent
The role and visibility of the CRO is increasing as boards and senior leaders focus on risk management and seek to align risk with business objectives. Many respondents reported that this emphasis was intense during the heat of the crisis and remains a high priority.
Boards are responding by separating risk from their audit committees and establishing a distinct risk committee to ensure independence. Several no longer allow board members to serve on both committees.
At the same time, the responsibilities of the CRO are greater than ever. Internally, CROs are not only often reporting directly to the CEO, but also involved in important decisions impacting strategic direction, compensation and product development. Additionally, the headcount of risk teams are rising across organizations. Externally, they are more prominently featured before regulators, analysts and shareholders.
Building a strong talent base with deep risk expertise while also successfully recruiting and retaining that expertise continue to be critical challenges across the industry.
Governance roles and responsibilities
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