Chapter 6 - Risk management function

Question 1

CRO responsibilities

Answer 1

ORACLES

O Ongoing policy development
R Reporting (internally and externally)
A Allocate economic capital across firm
C Communication betwene stakeholders
L Leadership
E ERM framework
S System development

Question 2

Risk management function (RMF) structures:

Answer 2

*Should incorprate CRF

Offence vs Defense
Policy & Policing
Partnership

Question 3

Three Step Risk Management Process

Answer 3

1) Risk awareness - Tone from above, common taxonomy, training, compensation
2) Risk measurement (report) - Losses, incidents, KRIs
3) Risk control - Selective growth, risk adjusted pricing, enforce limits