Job Description of a Chief Risk Officer
The chief risk officer is a top corporate executive position that deals with risk management. Usually, the chief risk officer sits on the executive committee with the chief financial officer, chief operating officer and other executives. Companies usually categorize risks as strategic, operational, financial, reputational or legal. Chief risk officers also deal with internal auditing, insurance, fraud, corporate investigations and information security.
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Duties
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The chief risk officer manages and develops a comprehensive process for assessing, identifying, monitoring and reducing pertinent business risks that could interfere with the company's objectives and goals. It is usually the chief risk officer's responsibility to ensure that the company is in substantial compliance with its internal operating policies and procedures and any external legal, regulatory or contractual requirements.
Education
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Chief risk officers, like most top executives, tend to have a bachelor's or master's degree in business administration. In some cases, risk managers may have studied liberal arts, economics or have a law degree. Chief risk officers in the public sector (such as at a university) may need a master's degree in public administration.
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Experience
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Top executive positions require extensive experience. Many chief risk officers have backgrounds as actuaries with a minimum of 10 years of managerial experience. From their experience, chief risk officers possess broad knowledge of pension, insurance, investment and employee benefits.
Qualifications
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Chief risk officers must possess comprehensive knowledge of traditional risk management principles and practices. They must have keen leadership and managerial skills. Another important skill for a chief risk officer is exceptional oral, written and interpersonal skills as he will be responsible for managing and interacting with a significant amount of people. Finally, sound business judgment and an ability to solve problems are key skills for a chief risk officer to possess.
Salary
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Chief risk officers are top executives. Top executives generally earn the largest salaries in the work force. As of 2008, the median annual income of an executive was $91,570. Some top executives, including chief risk officers, earn hundreds of thousands to millions of dollars annually when including benefits, such as stock options and bonuses. Public sector chief risk officers make substantially less than their private sector counterparts.
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References
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