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Risk and Compliance in the Financial Sector

The chief risk officer’s role is growing as financial firms develop broader views of risk. Chief risk officers (CROs) are tasked with the responsibility of bringing leadership and thinking to the financial industry. Traditionally, the CRO’s was a role at insurance companies but this has changed lately. It has gained demand after the 2008 financial crisis that came with the need for accountability and transparency in risk management. The chief risk officer is expected to be a strategic thinker. He is also expected to influence the decision-making process and help anticipate potential disruptions.
Duncan Martin of Boston Consulting Group says that chief risk officers require leadership skills to successfully manage relationships. He added that risk management has transformed into a strategic role that needs to gain the attention of board members. He further reported that there have been instances where former regulators were appointed to head risk management in companies.
The roles of chief risk officers continue to evolve with speculations of CROS becoming innovation generators. David Cookson, a recruitment consultant at Russell Reynolds Cookson, said that non-financial companies have increasingly developed an interest in CRO services. This is because of the current situation in the financial service industry. He added that companies in regulated industries are beginning to consider the addition of the CRO role in their executive structure.
Current reports show the growth in the important CRO roles. The CRO reports to the CEO in most financial institutions and enjoys direct contact with the board. According to a Global Risk Management survey by Deloitte, 46% of CROs in financial organizations report directly to the board. CROs now work hand-in-hand with compliance officers to conduct risk and manage compliance. They are tasked with identifying and mitigating risks such as operational risks, market risk and credit risk.
An example of a compliance officer is Helane L. Morrison. She is the Chief Compliance Officer, Executive Committee member and Managing Director and General Counsel of Hall Capital Partners LLC. She joined the company in 2007 from the Securities and Exchange Commission in San Francisco. As regional director, Helane was responsible for regulation, enforcement and litigation matters in five Northwest States that include Northern California.
Ms. Morrison was a law clerk for Justice Harry A. Blackmun of the Supreme Court. Currently, she is a member of the Regional Parks Foundation board. She is also a Hedge Fund Subcommittee member of the American Bar Association. HelaneĀ attended Northwestern University where she received her B.S in Journalism. She was the Editor-in-Chief for California Law Review at the University of California where she earned a J.D.

  1. Whyte Muller says:

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