The Risk Management Association and management consultancy Oliver Wyman have published key findings from the third annual Chief Risk Officer Outlook Survey.
This year’s survey found that chief risk officer (CRO) priorities have shifted since last year, with recession readiness still key but falling from the top five, and a focus on technology and strategic risk sharpening:
| The top five CRO priorities (2023 survey vs. 2022 survey): | |
| 2023 Survey | 2022 Survey |
| 1. Technology Risk | 1. Recession Readiness |
| 2. Strategic Risk/Disruption | 2. Consumer Compliance |
| 3. Wholesale (C&I and CRE) Credit Risk | 3. Cyber Risk |
| 4. Cyber Risk | 4. Fraud and Financial Crimes |
| 5. Tie: Risk Culture, Issues Around Operating Model | 5. Operational Resilience |
CROs indicated that the greatest proportion of their time – roughly half – is spent on non-financial risk, with much of that time focused on compliance and operational and resilience-related topics. The rest of their time is split, on average, between financial risks (about 30%) and enterprise, strategic, and other risks (about 20%).
Financial risks that organizations face accounted for three of the top five risks CROs named, with a significant increase in the importance of treasury and asset/liability management (ALM) risks, likely corresponding to this year’s regional bank crisis. Credit risk carried over as a top five risk from last year and takes up a greater percentage of a CRO’s time (16%) than any other risk.
CROs are also directing their attention toward anticipated shifts in the business landscape and the associated organizational and cultural ramifications in the realm of risk management. Strategic risk and disruption, risk culture, and challenges related to the operating model have emerged this year as key priorities for CROs. Refining the operating model and fostering a robust risk culture were noted as among the most time-consuming areas for CROs and two of the top five priorities.
