The Chief Risk Officer (CRO) is becoming a crucial member of the management team or of the board of director.
The numerous regulatory risks associated with global business reflect just how important the position has become for companies. The risk officer should take into account financial and extra-financial data and informations. Also information technology issues are very challenging for risk managers. The increasing intricacy of global business where risk tolerance can vary greatly are challenging for all organization. A business unit may find a risk acceptable; however, the company as a whole or the group at international level may not. CROs need to balance risks and inventory decisions to obtain an optimum level for stakeholders and all interested parties.
The Chief Risk Officer should be cautious when using their expertise in risk management to avoid being estranged from other managers. Their goal should be to communicate, coordinate and administer policy for risks, but the final responsibility should be the job of managers and employees.
In the future, priorities for risk management is remain in regard to regulatory compliance; however, some believe the importance of communication to the board of directors will be less demanding later. New product development and the risks associated with this type of business are expected to become increasingly important. The continuing use of global markets for these products will create the need for more strategic roles for CROs in the near future.