An end to the tick box risk function
The transformation on the risk function was a key subject at roundtable in London sponsored by IGI.
The growing complexity around risk and regulatory compliance has increased the pressure for Chief Risk Officers (CROs) to embed new thinking into their operations.
The growing complexity around risk and regulatory compliance has increased the pressure for Chief Risk Officers (CROs) to embed new thinking into their operations.
Speaking at a roundtable hosted in London by Insurance Day in conjunction with International insurance group IGI, the firm’s chief operating officer, (COO) Hatem Jabsheh, highlighted the several fundamental challenges faced by CROs.
The first was the need to clearly demonstrate to the boardroom the value that the CRO is delivering to the business and the bottom line.
“If the function is simply a tick box compliance function, it is a cost,” explained Jabsheh. “There is no value added to the company whatsoever.”
“If technology is going to help speed things up and help save costs, it has the potential to drive a higher return for individuals, by freeing them up to actually concentrate on where they can make a real difference,” he added.
The key, he added, was for the CRO and their role to be valued and acknowledged by the board and for their views to be both understood and respected.
“I personally think you need to have a risk and capital function that’s truly embedded into the company and for the decision-makers to understand the numbers and how to use them as part of the decision-making process,” he added.