Deloitte’s sixth annual Global Risk Survey demonstrates the expanding role of the chief risk officer, but it also reveals there’s still lots of room for growth when it comes to enterprise-wide risk assessment programs.
The firm, which polled 111 international financial institutions with combined assets totaling more than $79 billion, found that 78 percent of CROs report to the board of directors and/or the bank’s CEO. In 2006, only 42 percent reported to the CEO, while 37 percent reported to the Board of Directors. And 63 percent of institutions have adopted a formal statement of risk appetite. “With the magnitude of the credit crisis and the ultimate losses, boards (of directors) are questioning a number of areas for responsibility—the senior management, finance and risk functions,” says Deloitte’s