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Companies hiring CROs to avoid future risks
By siliconindia
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Tuesday, 24 August 2010, 21:22 IST
Bangalore: The global economic meltdown has made the Indian companies avert further risks by hiring Chief Risk Officers (CROs). More and more companies are becoming aware of corporate risk management and are doing their all to ward them off, before they come knocking again, reports Anjali Prayag of the Business Line.
Global search firms observe that corporate are taking steps to hedge themselves against any risks which could undermine their reputation or lead to their downfall.
Korn/Ferry International India, a search firm, conducted four searches in the first quarter of the year (two for the tech sector, one each for industrial and consumer sector). Joy Nandi, Partner and Practice Lead, Technology and Professional Services of the firm says about the role of CROs, "CROs will look at all types of risks (operations, sales, supply chain) and not restrict themselves to internal audit roles."
Continuing in the same tone, N Srinivas, Partner, Board Practice, Maxima Global Executive Search India profiles who could be an able CRO when he says, "Young MBA graduates, having worked under the auspices of a Chairman or a CEO, have become specialists in risk management and can take on the CRO's role."
The BPOs, however, have focused more on Business Continuity Process managers to do the role of CROs.
A global study by Korn/Ferry International found that almost 71 percent of the respondents believed that their company had improved the quality and timeliness of internal oversight and reporting to the Board to better assist in risk management and planning.
Of the companies surveyed, 20 percent organizations in India had a CRO. But respondents felt that the direct responsibility for risk management starts at the top. 44 percent of them identified the Chief Executive Officer as directly responsible, with 16 per cent pointing to the Chief Operating Officer.