Enabling the Chief Risk Officer's Success

 
 

 
 

​Risk continues to dominate discussions at the board and executive levels, whether it’s credit risk, model risk, regulatory compliance or other areas. It is no surprise, therefore, that chief risk officers continue to face challenges as they work with directors and executives on how to make meaningful progress in addressing the organization’s risk issues and develop commonsense solutions. 

Granted, many of these issues have been around a long time. But they continue to fester and expectations of the marketplace and regulators continue to evolve. This series of discussion papers will assist chief risk officers and their organizations in addressing these areas more effectively.

Establishing and Nurturing an Effective Risk Culture
Fourth in a series

This white paper focuses on risk culture because it is a topic in which regulators have a keen interest. Organizational learning is supportive of an effective risk culture that in turn is supportive of effective risk management. Supported by empirical research, this whitepaper explores such topics as the attributes of successful learning organizations, the importance of risk culture in financial services, challenges in making risk culture actionable, success factors for an effective risk culture, physical and behavioral characteristics of risk culture, a process for strengthening risk culture, and how the CRO can facilitate the development of an effective risk culture.

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Effective Positioning of the Risk Management Organization
Third in a series

The CRO is responsible for executing the risk program and providing another line of defense in protecting enterprise value. No other individual, function or group in a financial institution is charged with viewing performance exclusively from a risk perspective. This white paper discusses six key success factors for positioning the CRO. We cite three studies providing an indication of the “current state” and evidencing progress since the financial crisis. We have offered suggestions to enhance further the CRO’s positioning and have recommended some steps CROs might take to identify enhancements in how their function is positioned within their respective organizations.

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Constructive Engagement Through Effective Board Risk Oversight
Second in a series

Given the increased complexities in the way financial services firms conduct business in the global marketplace, along with more opportunities for surprises, it is imperative that organizations have effective board risk oversight. This white paper takes an in-depth look at how effective board risk oversight can contribute to the success of CROs.

Topics covered include:

  1.  Key success factors for ensuring effective board risk oversight 
  2. Views of directors from financial services companies taken from a Protiviti survey on the current state of board risk oversight
  3. Steps boards can take to improve risk oversight and how CROs can assist in taking those steps

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The Name of the Game Is Risk: Secrets of the Winning Hand
First in a series

Great poker players know instinctively “when to hold ’em and when to fold ’em.” They know when to lay back and when to strike for victory. In short, they know the discipline. While it’s important to note that even the most conservative and skilled poker player most likely has a risk appetite far in excess of the appetite that would be deemed prudent by most organizations, there are learnable lessons and analogies between poker and the role of the chief risk officer (CRO) or risk function. We propose that with successful deployment of the five secrets we introduce in this white paper, CROs will be better able to advise management and the board when to press forward and when to hold back, when to pass on seemingly great opportunities, and when to act with courage and confidence.

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