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.

  1. Internal Audit

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

    The process of identification, analysis and either acceptance ...
  3. Internal Controls

    Methods put in place by a company to ensure the integrity of ...
  4. Basel Accord

    A set of agreements set by the Basel Committee on Bank Supervision ...
  5. Sarbanes-Oxley Act Of 2002 - SOX

    An act passed by U.S. Congress in 2002 to protect investors from ...
  6. Attrition

    The reduction in staff and employees in a company through normal ...
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