In the past, a Chief Risk Officer’s (CRO) position was limited to ensuring that organizations met regulatory and compliance obligations, acting as a sort of failsafe to protect the business in the event of adverse scenarios. However, over time, CROs have acquired more influence across their organizations.
Corporate Compliance Insights recently featured an article from Vital4’s Chief Risk Officer, Guy Underwood, where he discusses the changes in a CRO’s duties and responsibilities that he has seen and experienced first-hand throughout his career.
“Having been involved in the risk management industry for over 25 years, I have seen many changes, including a move away from the dominance of insurance professionals at risk-related events and a younger and more diverse number of risk professionals in the marketplace,” Underwood shared.
According to Underwood, the events of this year present CROs with a unique opportunity to further establish their seat at the table by helping guide organizations through a time of vast uncertainty. He lists a handful of recent events that have led to businesses changing the way they operate, including the worldwide financial crisis, terrorism, political uncertainty and the global pandemic. Underwood states that CROs are a key factor in an organization’s response to these events and could shape their future strategic direction by helping them adapt to this new risk environment.
“I believe the way the world responds to the current pandemic – and the role we as Chief Risk Officers play in helping businesses in this response – will be a watershed for our profession,” Underwood concludes. “I look forward to seeing what the next generation of risk professionals can do for a post-pandemic society.”