The importance of a risk officer—a position now carrying their own acronym, CRO (for Chief Risk Officer)—is assuming a higher profile during an era of increased globalization, possibilities of litigation, and a complex web of regulations and laws.
“One small act or incident can put a company’s reputation at risk and potentially call into question its performance and ultimately its existence,” says French executive Blandine Cordier-Palasse. She notes that a good compliance officer “requires an excellent understanding of the company’s business in general, flexibility, (and) an open and inquisitive mind…” (See full article here).
To carry out this mission, an effective CRO needs a host of various traits. According to industry literature, here are some of the skills such a leader requires:
- The acumen to balance risk mitigation with business exigencies
- An excellent understanding of the business culture
- Good communicator
- Analytical ability and follow through skills to comprehend a wide range of risks
- Courage and confidence
- Integrity, ethics, and values
- Collaborator, partner, innovator
- Helps create a transparent and authentic culture
- Actively informs and advises CEO and board on corporate governance
Given the broad range of qualities required for a CRO, your immediate impulse may be to launch a national candidate search, or hire an executive search firm to screen prospects. Yet that may not be necessary. A good compliance officer may already be on your payroll.
There is a longstanding myth that it’s not possible to develop essential qualities and character traits in leaders—the kind that can help your company prosper amid the challenges of the modern age. Supposedly, you can only hire leaders who possess these skills; they can’t learn them.
However, that isn’t true. It is now possible to develop important qualities and attributes in your existing management team at a fraction of the costs of traditional leadership development. You can develop this side of a person.
With Risk Coach Training and Certification, Risk Officer can develop character traits in others like integrity, transparency, accountability, and trust. And it can all be measured.
If you’re ready to look within your own organization, to enhance your ability to balance risks and rewards—and develop the rest of your inherent potential—schedule a free consult.