Overview
Second Line Advisors conducted research and analysis on the backgrounds of chief risk officers from the top 50 large bank holding companies (hcs) to identify talent, profile, diversity, and career path.
*at the time of this report, one CRO position remained open. This data includes the CROs who are due to start later in 201
CHIEF RISK OFFICER ANALYSIS : FACT SHEET
Analysis & Conclusion
In this document, we have presented the results of our spotlight on the Chief Risk Officers of the top holding companies operating in the US. This assessment sheds light on the profile, selection, diversity, tenure and other facets of today’s Chief Risk Officer.
Key messages drawn are the following:
- The average tenure of the 2018 CROs is 3.54 years, contrasted with the 2017 average of 4.10.
- Nearly a third of the CROs have held their position for one year or less, 7 of which assumed their position within 1.5 years of a CEO change at their respective banks. The average time between these 7 CEO and CRO changes is 8.3 months.
- Of the top 50 CROs, 36% were hired externally, 33% of which were diverse.
- 28% of external hires have backgrounds in management consulting, which is second only to a traditional risk officer.
- 86% of the 50 CROs are male, while only 12% are female.
- For banks with over $250BN in assets, only 1 has a female CRO. The next female CRO does not appear until the bank ranked #18.
- Banks under $250BN in assets account for 91% of CROs with profiles outside of risk, credit, and business which include, audit, regulatory, compliance, finance, administration/operations, treasury and capital management.
Our research takes a deep dive into the attributes of current CROs, and it’s evident that the position for a significant financial institution requires a broader set of skills beyond the traditional risk or business management. The composite qualifications and backgrounds of CROs will only continue to grow increasingly diverse. Drawing from these statistics, we can surmise that, as leaders in risk, CROs will continue to require an astute understanding of business regulations while also serving as thought leaders who understand the basics of technology and data. Additionally, soft skills and influential ability, internal and external, are also key factors impacting potential success, as is the shared vision and relationship between the CEO and CRO
