Risk transformation — a breath of fresh air for the CRO agenda

Chief Risk Officers (CROs) are currently operating in a challenging macroeconomic environment that is, among other factors, characterized by geopolitical unrest, escalating climate risks, and the constant pressure of new regulatory requirements. This further emphasizes the need for CROs to implement and maintain a robust and effective risk management function.

On top of this, CROs and the Risk function are also facing significant cost pressure, which means that the activities of the Risk function need to be organized as efficiently as possible.

In 2021, KPMG conducted its CRO benchmark analysis, in which more than 50 banks worldwide participated in a risk survey on their organization. The objective was to examine the Risk function’s resource endowment and the allocation of activities and how that contributed to their overall efficiency. In addition to the quantitative data collection, further discussions were also held with CROs and other key decision-makers. The results of this analysis have been used to help CROs with advancing their Risk function.

The following whitepaper brings together the key insights from the CRO benchmark analysis presented in nine focus areas.