Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Jane Doe has just been promoted to the position of Chief Risk Officer. At the beginning of her tenure, she is handed her job description by the board of directors and Chief Executive. Which of the following statements gives a correct description of her new role?
Other
Community
TTanishq
A
Verify the activities of the firm to see if the reports outline the same
B
Define the level of risk the organization is willing to accept.
C
Review and approve the organization's policies.
D
Ensure compliance with regulations and standards related to risk management.
Explanation:
Explanation
The correct answer is D - "Ensure compliance with regulations and standards related to risk management."
Primary Responsibilities of a Chief Risk Officer (CRO):
- Regulatory Compliance: The CRO's main responsibility is to ensure the organization complies with all relevant laws, regulations, and industry standards related to risk management
- Risk Management Strategy: Developing and implementing effective risk management strategies and policies
- Oversight: Managing risk management activities across the entire organization
- Communication: Reporting risk-related issues to the board of directors and key stakeholders
- Protection: Safeguarding the organization from potential risks and liabilities while maintaining market reputation
Why Other Options Are Incorrect:
A is incorrect: While verifying activities may be part of the role, it's not the primary responsibility. The CRO's main focus is on managing and mitigating risk, not just verifying reports.
B is incorrect: Defining risk appetite (the level of risk the organization is willing to accept) is typically the responsibility of senior management or the board of directors, not the CRO. The CRO manages the risks within the defined appetite.
C is incorrect: While reviewing and approving policies can be part of CRO responsibilities, it's not their primary duty. Their main focus is ensuring policies align with regulatory standards and managing associated risks.
The CRO role is critical for maintaining organizational credibility and protecting against potential risks in today's complex regulatory environment.
Comments
Loading comments...