Why I’m Spending an Increasing Amount of Time as a CRO on Non-Financial Risk

Article

Non-financial risks (NFR) are becoming a more significant threat to financial institutions than financial risks. A CRO’s role is evolving, as these intangible threats, like climate risk, cyber threats, and reputation damage, require a culture-driven approach to mitigate their impact effectively.

Feb 25, 2025

Didier Magloire, Chief Risk Officer ANZ China & ANZ Asia, ANZ

Tags: Operational and Non Financial Risk

Why I’m Spending an Increasing Amount of Time as a CRO on Non-Financial Risk

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Non-financial risks are increasingly occupying the focus of CROs, surpassing traditional financial risks in significance.
Traditional financial risk management approaches are insufficient for managing unpredictable non-financial risks, especially those impacting reputation and regulatory compliance.
Defining risk appetite for non-financial risks is a challenging task, as it often involves zero-tolerance thresholds for potentially damaging events.
A strong risk culture, built on communication, awareness, and accountability, is crucial in effectively managing non-financial risks and mitigating their impact on the organization.