When crises such as Covid-19 hit, the Chief Risk Officer sits at the centre of the storm, advising management and the board as they assess and navigate risk impacts and opportunities on a real time basis. This is happening in the shadow of prolonged financial and non-financial disruptions, high expectations around support of the extraordinary governmental response programs, and a strained risk and control environment.
The CRO also plays a significant role in providing risk oversight of ‘return to the office’, adjustments to business and product strategies, as well as how to shift the long-term view of risk management as the financial services industry prepares for prolonged economic uncertainty and a reimagined operating environment.
The unprecedented impacts of the pandemic have challenged previously held assumptions around plausibility and severity with a number of external and internal risk drivers in play simultaneously.
Leading firms have instituted “pre-mortem” reviews of how risk, compliance and control tools and processes have performed – leading to decisions on key capability upgrades needed in a post Covid-19 world.
Now, Chief Risk Officers are focused on:
Next, capabilities developments include:
And beyond, we see CROs:
Watch our short video above which summarises the key issues on the CRO agenda as they navigate the pandemic now, next and beyond. You can also review our latest insights and thinking to support you in leading through these volatile times; don’t hesitate to reach out if you have any questions.