Chief Risk Officer - CRO

DEFINITION of 'Chief Risk Officer - CRO'

The executive responsible for identifying, analyzing and mitigating internal and external events that could threaten a company. The chief risk officer works to ensure that the company is compliant with government regulations, such as Sarbanes-Oxley, and reviews factors that could negatively affect investments or a company's business units. CROs typically have post graduate education with over 20 years of experience in accounting, economics, legal or actuarial backgrounds.


Also referred to as a chief risk management officer (CRMO).

BREAKING DOWN 'Chief Risk Officer - CRO'

The position of chief risk officer is constantly evolving. As new technologies are adopted by a company, the CRO must govern information security, protect against fraud and guard intellectual property. By developing internal controls and overseeing internal audits, threats from within a company can be identified before they result in regulatory issues.

RELATED TERMS
  1. Internal Audit

    The examination, monitoring and analysis of activities related ...
  2. Risk Management

    The process of identification, analysis and either acceptance ...
  3. Sarbanes-Oxley Act Of 2002 - SOX

    An act passed by U.S. Congress in 2002 to protect investors from ...
  4. Basel Accord

    A set of agreements set by the Basel Committee on Bank Supervision ...
  5. Internal Controls

    Methods put in place by a company to ensure the integrity of ...
  6. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
Related Articles
  1. Insurance

    The Challenging Role Of The Corporate Treasurer

    Corporate treasury management has evolved from an offshoot of accounting to a more specific and strategic career.
  2. Personal Finance

    Using Economic Capital To Determine Risk

    Discover how banks and financial institutions use economic capital to enhance risk management.
  3. Investing Basics

    Human Capital: The Most Overlooked Asset Class

    The skills and knowledge that allow you to make money are your best asset. Remember to invest in yourself!
  4. Retirement

    The Evolution Of Enterprise Risk Management

    This growing sector can tell you a lot about the companies you are investing in.
  5. Entrepreneurship

    The Rise And Demise Of New Century Financial

    A case study in how poor planning toppled a subprime mortgage giant.
  6. Executive Compensation

    How Restricted Stocks and RSUs Are Taxed

    Many firms pay a portion of their employees’ compensation in the form of restricted stock or restricted stock units.
  7. Term

    The Pros and Cons of Sell-Offs

    A sell-off is the rapid sale of a security that’s followed by a drastic decline in its value.
  8. Economics

    What Does Triage Mean?

    The term triage refers to the practice of prioritizing work or customers into different levels so that the most urgent issues are handled first.
  9. Your Practice

    Advisors: Avoid Making This Mistake with Clients

    Financial advisors who focus only on wealthy clients may be missing out on a significant portion of business. Here's why.
  10. Economics

    What Does the Back Office Do?

    A financial services company’s back office provides administrative and personnel support.
RELATED FAQS
  1. What are the key differences between pro forma statements and GAAP statements?

    The U.S. generally accepted accounting principles (GAAP) require companies to adhere to uniform reporting standards that ... Read Full Answer >>
  2. How do the C-suite members work together to make a successful company?

    Corporate managers, typically chosen by a board of directors in large organizations, are ultimately responsible to stakeholders ... Read Full Answer >>
  3. How does agency theory propose to deal with the agency problem?

    Agency theory highlights potential problems that may occur when agents and principals have different interests. Principals ... Read Full Answer >>
  4. Why is social responsibility important to a business?

    Social responsibility is important to a business because it demonstrates to both consumers and the media that the company ... Read Full Answer >>
  5. How do you conduct effective social responsibility training?

    One way to provide employees with effective social responsibility training is to base training sessions on resources offered ... Read Full Answer >>
  6. How important are business ethics in running a profitable business?

    A number of factors play a part in making a business profitable, including expert management teams, dedicated and productive ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center