Chief Risk Officer

What Does Chief Risk Officer Mean?

A chief risk officer (CRO) is an executive- or senior-level position within a company. The chief risk officer is responsible for analyzing and governing that company’s risk.

Advertisements

They are responsible for evaluating IT security as well as other potential threats to business.

Techopedia Explains Chief Risk Officer

A chief risk officer deals with a variety of categories of risk. One of these is insurable risk, where the executive can look at applicable insurance that minimizes risk. Another area is regulatory risk, where the chief risk officer typically has to make sure that the business and all of its operations are in full compliance with industry regulations.

On the IT side, the chief risk officer often uses specific enterprise applications or other IT resources to help guide risk management. For example, risk management software can be instrumental in mitigating and handling various kinds of risks for business. These software applications, which often use predictive analytics, help the chief risk officer and other professionals to identify risks and avoid them.

The specific nature of what a chief risk officer does varies according to the industry that the business is in. The duties of a chief risk officer for an energy business will be significantly different from the duties of a chief risk officer at a business that is primarily run based on data, such as a legal business or other knowledge-management operation. However, in general, a chief risk officer’s use of IT to collect business intelligence to support decision-making is a classic example of how executives across the board are using new technologies and software to enhance their leadership roles in business operations.

Advertisements

Related Terms

Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.