The LMA’s Chief Risk Officer Committee has announced the publication of a joint paper with the Korn Ferry Institute. The report charts the rapid evolution of the CRO role since the financial crisis and its continued expansion in scope and importance, particularly for insurers.
While still relatively technical, the CRO role is becoming more strategic. The shift from technical expert to business advisor has propelled CROs into a world of complex stakeholder relationships, business navigation and regulatory expectations. This poses significant challenges for aspiring CROs in maximising the effectiveness of businesses risk functions.
The report concludes that managing ambiguity and conflict, cultivating innovation and situational adaptability are key competencies for CRO’s to develop, requiring substantial effort from them and significant support from stakeholders. It also states that finding the next generation of talent will prove difficult for many organisations. Those that succeed will establish CROs as senior executives who are close confidants of the CEO able to contribute positively to the strategy and operation of the business.
Alex Hindson, Chair of the LMA CRO Committee and Chief Risk Officer, Argo Group said: “This report is an important contributor to the evolving discussion regarding the nature of the Chief Risk Officer role and the personal qualities required to fulfil such a role in the insurance industry. Developing the risk management talent of the future and ensuring it is prepared to meet the threats and opportunities facing our industry is an important element of building the risk function of the future.”
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Notes to Editors
The paper is available to download here: www.lmalloyds.com/finance
About the Lloyd’s Market Association (LMA)
Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd’s Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £30 billion per annum.
For more information visit: www.lmalloyds.com