Why Financial Institutions Could Benefit from a Virtual CRO
Do you become distracted with your enterprise goals and begin a trajectory down one path, only to find yourself abruptly changing your course of action? Do you find yourself looking for a definitive roadmap to follow when trying to align your risk management strategies with the objectives of your organization?
When I speak with financial institutions responsible for Enterprise Risk Management (ERM), I often see these recurring challenges:
- Small to moderate-size financial institutions without a full-time risk management resource
- Larger financial institutions without a Chief Risk Officer (CRO) due to an unplanned event
- Financial institutions that need bandwidth for a short-term ERM project, but don’t want to hire a full-time resource
- Financial institutions that are challenged to find qualified resources that can cover all areas of risk (operational and market) with limited time and budget
These challenges can create disconnects between risk management and strategic objectives, inefficiencies in the business process, and an elevated risk of costly mistakes—all of which could be avoided with a Virtual Chief Risk Officer (vCRO).
An Immediate Fix
As an immediate solution, a vCRO is an ideal and feasible match for many organizations. A virtual CRO addresses the budgetary concerns of hiring a full-time resource—working at a fraction of the cost of a full-time risk professional while still remaining a trusted source of expertise. VCROs have diverse subject-matter experience and honed industry best practices, allowing them to provide expert advice at any time.
If you are a smaller financial institution with new risk managers, have existing risk managers needing guidance, need reviews performed on a retainer-type basis, or desire to transition to a more robust risk program (and need help getting there), then a vCRO is right for you.