Which of the following are a CRO’s responsibilities:

Which of the following are a CRO’s responsibilities:

I. Statutory financial reporting

II. Reporting to the audit committee

III. Compliance with risk regulatory standards

IV. Operational risk
A . I and II
B . II and IV
C . III and IV
D . All of the above

View Answer

Answer: C

Explanation:

Statutory financial reporting is the responsibility of the Chief Financial Officer, not the Chief Risk Officer. The head of internal audit reports to theaudit committee of the board, not the CRO. Therefore statements I and II are incorect.

The CRO is generally expected to drive risk and compliance with related regulatory standards. Market risk, credit risk and operational risk groups report into the CRO, so statements III and IV are correct.