The chief risk officer is responsible for the effective assumption of manageable risk and helps the organization avoid anything that might threaten the successful execution of the company’s duties. The job description of the chief risk officer accounts for the unique set of skills and abilities that allows for the individual to anticipate and hopefully eliminate such threats and keep the company operating effectively.
The chief risk officer serves with the other managers and executives and oversees much of the financial and accounting departments in the company.
Essential Duties and Responsibilities of a Chief Risk Officer
- Identifies potential threats to the financial stability of the company, including risky credit, investments, and portfolio inefficiencies.
- Detects potential threats to operational efficiency including underperforming resources, personnel liabilities, property inefficiencies, and safety risks.
- Recognizes potential threats to the company’s reputation including marketing missteps.
- Prepares and maintains internal and external data gathering for risk analysis and reporting.
- Designs and implements methods for avoiding potential threats using available risk metric software and personal knowledge of the industry.
- Delivers regular risk analysis reports to company executives complete with actionable plans for avoiding or preventing potential threats at all levels.
- Coordinates programs designed to minimize threats and anticipate threats to the company.
- Develops insurance strategies and financing techniques to appropriately deal with any unanticipated losses.
- Oversees all audits of accounting practices, safety measures, and compliance reports.
- Conducts regular risk assessments either through a team of risk management experts or personally on site.
- Manages and prepares all documentation related to risk assessments and reviews of standard operating procedures.
Required Knowledge, Skills and Abilities
- Must be familiar with insurance and liability as well as compliance standards for the industry, including financial, property, operational, or personnel reporting, regulations, and standards.
- Must have extensive knowledge of financing and insurance strategies to build up preventative measures against potential losses.
- Must be a proven leader and manager, able to take charge and act assertively without guidance.
- Must have excellent communication skills, both written and verbal.
- Must possess knowledge of risk analysis, database management, risk metrics, and capital management.
- Extensive knowledge of legal requirements and compliance regulations.
- Must have strong interpersonal skills to manage large teams.
- Must be both a problem solver and a risk taker.
- Proficient with risk management, auditing techniques, and accounting standards and principles.
Education and Experience
- Bachelor’s degree in accounting, business administration, finance, or risk management.
- Master of Public Administration degree recommended for work in public sector.
- Master of Business Administration or law degree recommended for work with large companies.
- Must have at least 10 years in risk management, insurance or liability research, or actuarial management.
- Time spent divided between corporate offices and meeting rooms and in the field monitoring daily work in the company.
- Must be willing to travel extensively to survey work sites at all levels.
- Some risks involved in work site visits in mechanical, construction, and other industries.
- Median yearly salary about $200,000.
- Those with top companies earn upside of $500,000 to $1 million a year.