A very relevant study by Accenture – the Risk and Finance relationship has become increasingly important; historically Risk has been a function of Finance but that view is changing due to the regulatory pressure faced by today’s financial services businesses. Today, the CRO is increasingly on the top table within organisations and sits alongside the CFO in stature. Ironically, this means the CFO needs to be more in touch with Risk and hold stronger relationships across it due to the common compliance issues. The view today is that Risk and Finance should have independence of one another so that the balance between profit/commerciality versus risk can be fully understood by the CEO and Board, but the relationship between the two should allow cohesion in their priorities.
One consequence of this transition is that more finance and risk professionals are choosing to broaden their experience across both areas to increase their chances of success in gaining the top CRO/CFO position. We are seeing an increase in the demand for commercially minded leaders in the CRO, something that has long been demanded of a CFO, and an increase in the breadth of understanding for both positions.
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