Posts Tagged ‘ CRO ’

The Night’s Watch and the Wall of risk management

January 20, 2012

  In the series A Song of Ice and Fire which begins with the book A Game of Thrones, by George RR Martin, we are introduced to the Wall and the Night’s Watch. The Wall is an immense fortification on the northern border of the Seven Kingdoms that defends the realm from “what lies North of the wall”. It was created over 8000 years ago and measures 300 miles in length and 700 feet in height. The protectors of the Wall are a military order clad in black known as the Night’s Watch and they are as old as the…

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Ned Stark. Hand of the King. Chief Risk Officer.

December 7, 2011

Eddard (Ned) Stark, Lord of Winterfell, is a protagonist in the book A Game of Thrones by George R.R. Martin. He is principled and tells the truth and believes in honour and justice. Ned would make an excellent Chief Risk Officer. When King Robert Baratheon asked him to become the Hand of the King – a chief advisor to the King who executes the king’s command and speaks in the King’s voice – it was not a job Ned was seeking. He took the job because his friend needed him and Westeros needed a man like him. In that role,…

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Gladwell, crashing planes and risk management

November 10, 2011

  In his book “Outliers”, author Malcolm Gladwell explains how “The kinds of errors that cause plane crashes are invariably errors of teamwork and communication” as opposed to mechanical causes. Also, they usually happen after a sequence of mistakes and misfortunes and rarely because of one event. Our respective cultures dictate how we work and communicate with others. Gladwell describes how communication is very formal in many places where there is a social hierarchy between the “inferior” and “superior” person having the conversation. (Think customer and waiter, accountant and CFO, and co-pilot and pilot.) Even though it’s a co-pilot’s role…

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Risk management oldies but goodies

October 12, 2011

The good folks at Riskviews got me thinking about my least read posts. I’ve been doing this for a few years and understand that no one wants to scroll through over 300 blog entries to find some gems from 2006. So here are a few items you may have missed that might be worth your time. A Common Sense Approach to ERM In a sentence, The Riskczar says the common sense approach to describing the process of risk management like this: First you identify your risks, you figure out which ones are the most important, next you decide how to…

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The CRO cannot be expected to do what only the CEO can do

May 27, 2010

Here’s an excellent op-ed piece in US Banker about the role of the chief risk officer and the CEO. This may be the best thing I’ve read in months. Setting the tone for this article is Warren Buffet who recently wrote in the BRK shareholder’s letter:  “I believe that a CEO must not delegate risk control. It’s simply too important. … If Berkshire ever gets in trouble, it will be my fault. It will not be because of misjudgments made by a risk committee or chief risk officer.” The author writes: 1) CEO is directly responsible for thoroughly understanding and…

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Risk managers and Chief Risk Officers are “genuinely different types of creatures”

October 18, 2009

I enjoyed this article about the ascent of the Chief Risk Officer, The chief risk officers are coming, published in July 2009 by Lloyds. Specifically, the differences between the risk manager and the CRO are interesting as described by Peter den Dekker, president of FERMA, the association of European risk managers. The CRO is member of the board and part of the corporate decision-making body. He or she will be taking part in decisions about mergers and acquisitions, contracts, investments. The risk manager is a facilitator … his or her job is to embed the company’s risk management policy and…

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