Growing Importance of CRO

"Strategy that lacks alignment to risk management is not only insufficient but downright dangerous. Risk management is pointless unless it is closely tied to the company's strategic objectives."

     ..............T Nagumo, Bank of Tokyo Mitsubishi.

Risk Management & role of Risk Officers, headed by a Chief Risk Officer is gaining more & more prominence & importance to help the business organizations through the maze of so much uncertainties in todays's business environment. This is the era of Brexit & an inward looking USA in international business. The situation becomes more complicated with geo-strategic concerns, chiefly headed by a growing assertiveness of China. In India, the huge NPAs has created a pathetic state of our banking sector clearly shows the lack of risk management awareness among our bankers, whatever the political or economic factors maybe. In a recent interview, a former Chairman of SBI clearly highlighted this - very less importance given to Risk Management given by the Indian banks, especially in the Government owned banks.

The Deloitte Survey of Global Risk Management also clearly shows the very high uncertainty in today's business environment.

https://dupress.deloitte.com/dup-us-en/topics/risk-management/global-risk-management-survey.html

Its time that tools like FMEA (Failure Modes & Effects Analysis) & other Risk Management tools, with clear Risk Treatment Plans are given utmost importance by business organizations. This makes the role of Risk Management Dept, headed by a CRO all the more important.