The Chief Risk Officer: The King’s Advisor in the C-Suite Kingdom

Earlier today, I had an eye-opening conversation with a former Chief Risk Officer (CRO) of a large financial service company. As we talked about his career, he admitted that much of his time was spent keeping the "reporting wheel" turning—churning out risk reports for a variety of Boards and committees. “I was essentially an admin function,” he said with a sigh. “I wasn’t really contributing to value-added activities. It felt like I was just ticking boxes.”

This is a reality for many CROs, who find themselves bogged down in compliance and reporting, leaving little room for strategic contributions. But the potential of a CRO to shape the destiny of an organization goes far beyond reports. The role can be a driver of transformation, innovation, and long-term success. Let’s explore why this potential often goes unrealized, and what CROs can do to make themselves indispensable to the C-suite.

Why CROs Struggle to Be Appreciated

1. Perception of Being Administrative: When a CRO’s role revolves around reporting, they risk being seen as a cost center rather than a strategic partner.
2. Focus on Outputs, Not Outcomes: Producing reports satisfies compliance requirements, but without actionable insights, they don’t drive meaningful change.
3. Disconnect from Business Goals: When CROs don’t align risk management with strategic objectives, they lose the attention of decision-makers.
4. Overlooked Contributions: The preventative nature of risk management means success often goes unnoticed—until something goes wrong.

Where CROs Should Be Adding Value

Instead of merely producing reports, CROs should focus on activities that directly support the organization’s goals. Examples include:

• Shaping Strategy: Collaborate with the C-suite to identify risks and opportunities tied to strategic objectives.
• Scenario Planning: Facilitate workshops that simulate potential risks, helping the ExCo understand their implications and prepare response plans.
• Driving Innovation Safely: Work with product and technology teams to embed risk controls into new initiatives, enabling innovation without jeopardizing resilience.
• Proactively Addressing Emerging Risks: Use horizon scanning to anticipate shifts in the market, regulations, or technology that could impact the business.
• Enhancing Operational Efficiency: Leverage risk insights to streamline processes, reduce waste, and improve cost efficiency.

The Value a CRO Brings to the ExCo

A CRO who focuses on value-added activities becomes a strategic enabler, bringing unique perspectives to the table:

• Strategic Advisor: Offering insights that balance risk with opportunity, helping the organization take calculated risks that drive growth.
• Resilience Architect: Building a risk-aware culture and robust frameworks to ensure the organization thrives despite disruptions.
• Guardian of Trust: Safeguarding the organization’s reputation by ensuring ethical practices and proactive risk management.

From Reporting to Resilience: Transforming the CRO Role

A typical CRO’s day often involves:

• Preparing and reviewing reports for committees and Boards.
• Responding to urgent incidents.
• Monitoring compliance with regulations.

What it should involve:

• Partnering with business leaders to align risk management with strategic priorities.
• Translating complex risk data into actionable insights.
• Leading risk-based decision-making processes across the organization.
• Facilitating cross-functional collaboration to embed risk management into everyday operations.

Quick Wins for CROs

1. Elevate Reporting: Transform static reports into dynamic dashboards that tie risk metrics to business outcomes.
2. Start Strategic Conversations: Use reports as a starting point to discuss risks in the context of opportunities and objectives.
3. Showcase Success Stories: Share examples of how proactive risk management has prevented losses or unlocked growth.

Key Success Factors for CROs

• Adaptability: Move beyond compliance to address the unique needs and goals of the business.
• Influence: Develop trust and credibility with the C-suite by offering insights that support their priorities.
• Commercial Acumen: Understand the drivers of business success and frame risk discussions in that context.
• Collaboration: Build strong relationships across the organization to integrate risk management into all functions.

What a CRO Should Not Be

• A Box-Ticker: Focusing solely on reporting and compliance risks becoming irrelevant to the business.
• The ‘No’ Person: Blocking initiatives without offering alternatives stifles innovation and collaboration.
• Detached: Remaining siloed from business operations and decisions undermines the value of the role.

Why the CRO Is the “King’s Advisor”

The CRO’s role parallels that of a trusted advisor to a king: offering a balanced perspective that tempers ambition with foresight. By guiding decisions with a blend of caution and opportunity, the CRO empowers the organization to take calculated risks that lead to sustainable success.

Positive Changes CROs Can Introduce

• Short-Term: Develop a proactive incident management process, linking lessons learned to improvements in resilience.
• Long-Term: Foster a culture of accountability and risk ownership across all levels of the organization, embedding risk management into its DNA.

Final Thoughts

The role of the CRO is at a crossroads. Those who remain stuck in reporting cycles risk irrelevance, while those who step into a strategic advisory role have the power to shape the future of their organizations. By focusing on outcomes, building strong relationships, and speaking the language of the business, CROs can move from being seen as “risk reporters” to indispensable partners in the C-suite.

So, to my fellow CROs: Are you ready to stop the wheel of endless reporting and start driving value? Let’s challenge the status quo and embrace our roles as the King’s Advisors. Your voice matters—make it heard.