Feature
PRACTICE
Bridge to the future BY EMMA FOWLER
While businesses have their gaze fixed on getting the right digital experts for their future transformations, few understand what talent evolution is likely to mean for their enterprises – and how to get ahead of the game
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t’s hard to believe the phrase chief risk officer (CRO) has been around for almost 30 years, since James Lam coined it at GE Capital in 1993. Since then, the role of CRO has become ever more common as regulation has increased (particularly across financial services after the 2008 crisis), and building a second line of defence has become seen as best practice. As the title has grown in popularity and the talent pool has expanded, so the scope and influence of the role has expanded.
Enterprise Risk
The fight for data scientists and machine learning developers currently is miniscule in comparison with the shift in talent requirements we’ll see in future CROs now often report directly to the CEO or chair of the risk committee, set risk appetite and form part of a company’s board or executive team – not because they must, but because other executives recognise the support, challenge and safety that having a world-class risk function can bring. A business-savvy CRO who can guide the front line
and the senior management of the business to take the correct amount of risk (and as a result, capitalise upon opportunity – rather than managing risk by saying no to business decisions) is worth her weight in gold and can command a financial package of more than £1 million a year. But what next for the CRO: this critical business shaper, this 16
