“The rising prominence” of chief risk officers (CROs) is the big news out of a recent Ernst & Young survey of CROs.
The annual survey this year showed that “The difficult economic environment and ongoing regulatory shifts have provided CROs a unique opportunity to demonstrate their value. They are engaging more directly with business-unit leaders and working more broadly across the enterprise than ever before. For example, a few insurance CROs are working with operational functions (including new product development and Information Technology (IT)) in which they were rarely involved in the past. Others are taking on responsibility for new risk areas (such as IT risk, reputational risk and emerging risk)…There is every reason to believe these trends will continue in future survey results. It is clear that deep and broad risk management capabilities are needed across the insurance enterprise, and CROs have the experience, knowledge and toolsets to deliver them.”