Risk officers come in from the cold

The function wins few friends at investment banks, but is gaining in influence

Monday 11 January 2010 at 17:00

No one becomes the chief risk officer of an investment bank and expects to win a popularity contest. In bull and bear markets, the odds are on losing friends rather than gaining them.

However, looking back at the financial crisis of 2008-2009, those banks that had influential CROs, who in turn had the ear of the chief executive and the board, emerged as rare pillars of strength in the investment banking industry.