This research study aims to understand how the CRO (Chief Risk Officer) functions and the evolving culture and processes. It focuses on the operating processes and looks at the CRO function’s overarching delivery mechanism. It also highlights the centralization and restructuring of the risk unit currently occurring in many financial institutions. The increased externalization of the risk function, its broader role, and its impact on organizations are some of the key aspects covered in the study.
This research focuses on how the risk function influences organizations’ growth agendas, key performance indicators (KPIs), measurement frameworks, early warning systems, risk simulations, and the role of advanced analytics. It also examines the risk function across retail banks, universal banks, buy-side firms (asset managers, hedge funds, etc.), insurance companies, investment banks, and broker-dealers. This study looks at the specific pressures each faces and analyzes how the risk function is evolving within each type of institution.