Chief risk officers (CROs) in UK financial services are undergoing a transformation from compliance enforcers to key strategic partners in the boardroom, according to a new report.

The study, Optimising Growth: The Evolving Role of the Chief Risk Officer, conducted by Bayes Business School at City, University of London, with support from the Lord Mayor of London, Alderman Alastair King, highlights how CROs are now seen as drivers of growth rather than obstacles to innovation.

Based on interviews with 31 CROs from UK financial institutions, the report details how the role has expanded in response to an increasingly complex global financial landscape.

Once perceived as the “no team” for their focus on compliance and risk aversion, CROs are now recognized for their ability to foster innovation and create long-term value.

Their influence has grown significantly since the 2008 global financial crisis and the introduction of the Senior Managers and Certification Regime (SM&CR) in 2016, which reinforced the importance of strong risk management in strategic decision-making.

Dr. Cormac Bryce, the lead author and a reader in risk management at Bayes Business School, emphasized the evolving skillset required for CROs.

“The message that emerged repeatedly from our discussions with CROs was the wide range of skills required for the role. Senior leaders now appreciate that effective risk management can fuel growth rather than hinder it,” he said.

The report recommends that financial firms fully integrate risk management into their business strategies, develop CROs with both technical and leadership skills, and encourage close collaboration between CROs, CEOs, and other business units to enhance resilience and innovation.

Alastair King underscored the importance of this shift, stating: “The strategic management of risk will define the leading financial centres of the future.

To sustain the UK’s position as a world leader in financial services, we must innovate and take responsible risks. Regulators need to focus not only on preventing failure but also on encouraging success.”

Modern CROs now play a multifaceted role, managing crisis response, designing risk frameworks, and working across departments to align risk considerations with long-term business objectives. Their growing influence in strategic decision-making is positioning them as equal partners to CEOs, ensuring that risk management is not just about protection but also about seizing opportunities.

Jennifer Geary, a City risk practitioner and author, noted that the findings should encourage financial leaders to empower CROs further. “This report shows that CROs are ready to drive responsible growth. Leaders should harness this expertise to support informed risk-taking,” she said.

Dr. Sionade Robinson, vice-president of enterprise at Bayes Business School, highlighted the significance of the research. “This study demonstrates how collaboration between academia and industry can deliver meaningful insights to maintain the City of London’s global leadership in financial services,” she said.