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.