Chief Risk Officers in the News

Recently, there have been many news articles mentioning CROs.  This page will show some examples of the growing coverage.

Some of these stories make you wonder whether a CRO can both DO the job and KEEP the job.

NEW TREND SPOTTED 2011

More and more, CROs are being tapped as the spokespersons for their firms to make public statements about various situations that involve risk (and what doesn’t?).  Also, many CROs are getting promoted to CFOs and some are seen as candidates for CEO jobs (though we haven’t spotted a jomp from CRO to CEO yet.)

 

Advertisements

71 Comments on “Chief Risk Officers in the News”

  1. riskviews Says:

    NEW YORK — American International Group, Inc. (NYSE: AIG) announced today that it has named Charlie Shamieh Chief Executive Officer, Life, Health, and Disability Insurance. Alessa Quane, currently Chief Risk Officer for Commercial Insurance, will assume Mr. Shamieh’s responsibilities as Corporate Chief Actuary, overseeing Global Actuarial and Value Management.

    Mr. Shamieh will report to Kevin Hogan, Chief Executive Officer, Consumer Insurance, and Ms. Quane will report to David Herzog, Chief Financial Officer. The appointments take effect in March 2015.

    “We are delighted that Charlie, a seasoned executive who has broad international experience in both life and non-life insurance, is taking on this role,” Mr. Hogan said. “He is well-suited to bring further innovation and creativity to the expanding Life, Health, and Disability opportunities available to AIG. Charlie’s role as Corporate Chief Actuary has provided him great insight into the structural drivers behind all of our products and businesses. He will continue to enhance and further develop our businesses in the U.S., Japan, China, and UK, as well as explore additional opportunities to enter new products, services, and geographies.”

    Mr. Shamieh has more than 28 years of industry experience, having held senior insurance and reinsurance executive positions across three continents. Since joining AIG in 2007, he has made significant contributions, including building the risk functions in each of AIG’s insurance businesses and, in 2011, establishing the first integrated corporate actuarial function. In this role, he also led AIG’s insurance company regulatory and rating agency capital and asset-liability management efforts, as well as value-based management initiatives.

    Prior to joining AIG, Mr. Shamieh held senior insurance and reinsurance executive positions at Munich Re Group, AMP, Mercer, Deloitte, and Oliver, Wyman & Company. Mr. Shamieh holds a Bachelor of Economics degree from Macquarie University, and is a Fellow of The Institute of Actuaries of Australia and a Member of the American Academy of Actuaries.

    An 18-year veteran of AIG, Ms. Quane becomes Corporate Chief Actuary after serving in a variety of leadership roles at AIG in Enterprise Risk Management and Actuarial. Prior to becoming Chief Risk Officer for Commercial Insurance, she supported the property casualty business as Chief Risk Officer and as Head of Enterprise Risk Strategy. Ms. Quane also served as Chief Risk Officer for AIG’s international businesses and as Chief Actuary for the UK/Ireland, and European regions.

    “Alessa is a proven leader,” Mr. Herzog said. “As AIG’s Chief Actuary, Alessa will be responsible for leading, and continuing to build on, the foundations that Charlie and his teams have created. We are confident in Alessa’s abilities and the perspectives she will bring to this leadership role, especially as AIG faces increasingly new and complex risks specific to our businesses.”

    Ms. Quane is a Fellow of the Casualty Actuarial Society and a Member of American Academy of Actuaries. She holds a Bachelor of Science in Business Administration degree from Drake University.

    Read more here: http://www.heraldonline.com/2014/11/13/6526753/aig-appoints-charlie-shamieh-ceo.html?sp=/100/773/385/#storylink=cpy

  2. riskviews Says:

    The Phoenix Cos. Inc. hired a former Massachusetts Mutual Life executive to lead and manage the risk profile for the Hartford insurer and its products.

    Mark Griffin is Phoenix’s new executive vice president and chief risk officer, reporting to CEO James D. Wehr.

    Griffin headed financial planning and analysis for Mass Mutual Financial. Before that, he was chief investment officer and chief risk officer for Genworth Financial, chief risk manager for GE Insurance. He also held senior positions at Goldman Sachs and Morgan Stanley.

    An actuary, he has a math degree from the University of Waterloo, Ontario, Canada.

  3. riskviews Says:

    Awards 2013: Chief risk officer of the year: Sean Ringsted, Ace

    Sean Ringsted is the chief risk officer’s chief risk officer (CRO). Appointed CRO of Ace Limited, the parent company of property and casualty specialist Ace Group …

    Risk.net
    Aegon CRO to leave at year-end
    FT Adviser
    Charles Garthwaite, chief risk officer of Aegon, will be stepping down from his post at the end of this year. Subject to final regulatory approval, Jim Ewing, …

    Awards 2013: Reinsurer of the year: Scor
    Risk.net
    Frieder Knuepling, deputy chief risk officer at Scor, based in Paris, says: “We work on … They set out our entire framework, risk appetite, business preferences, …

    RBI sees loan demand rising, hard to call NPL peak
    Reuters
    Chief Risk Officer Johann Strobl said it was difficult to say if non-performing loans had peaked. “Unfortunately, the non-performing loans are four to six quarters …

  4. riskviews Says:

    SGX Names New Chief Regulatory Officer and Chief Risk Officer as …
    MarketWatch
    … Yeo Lian Sim is retiring as Chief Regulatory & Risk Officer at the end of this year. … Risk Management function will be led by Agnes Koh as Chief Risk Officer.

    Channel News Asia
    Esure promotes risk head Boland to CRO role
    Post Online
    Whitehouse took on the role of chief risk officer in November last year, and retires from the business after thirteen years, having originally been named as head …

    Post Online
    MOVES-Singapore Exchange, Henderson
    Reuters
    The exchange said it had split the role of its regulatory and risk chief officer, a move that follows a penny stock crash that raised questions about the firm’s …

    SGX appoints new regulatory and risk officers
    Futures and Options Intelligence (subscription)
    Singapore Exchange (SGX) has split the roles of chief regulatory officer and chief risk officer after its joint holder of the titles, Yeo Lian Sim, announced she will …

    Aurora Spine Announces New Chief Financial Officer
    MarketWatch
    … Eric Fronk has been hired as the company’s new Chief Financial Officer, with … Mr. Gross, the former chief financial officer of the company, will take over the …

    Marathon Patent Group Adds Richard Raisig as Chief Financial Officer
    Wall Street Journal
    ALEXANDRIA, VA–(Marketwired – Nov 22, 2013) – Marathon Patent Group, Inc. (OTCQB: MARA) (“Marathon”), an intellectual property services and patent …

  5. riskviews Says:

    July 2, 2013 – Swiss bank Credit Suisse (CSGN.VX) said on Monday it has chosen Joachim Oechslin, currently chief risk officer (CRO) at reinsurer Munich Re (MUVGn.DE), to succeed Tobias Guldimann in the same role at the bank from next year.

    “He is one of the leading executives in risk management and an excellent choice for Credit Suisse,” the bank’s chief executive Brady Dougan said in a statement.

    Swiss citizen Oechslin, a passionate hiker, has been CRO at the world’s biggest reinsurer since 2007 and helped navigate it through the financial crisis.

    He had previously managed risks at insurers AXA (AXAF.PA) and Winterthur, and will take over at Credit Suisse on January 1, 2014, the bank said.

    Guldimann, who has been CRO at Credit Suisse since 2004, is taking on a newly created role as head of reputational risk, corporate responsibility and regulatory policy.

  6. riskviews Says:

    Romel Salam has been promoted to Executive Vice President and Group Chief Risk Officer of Validus Holdings, effective April 2, 2013.

    Mr. Salam has nearly 25 years of industry experience, most recently serving as the Chief Actuary and Chief Risk Officer of Validus Reinsurance, Ltd.. Prior to joining Validus Re in 2010, Mr. Salam was a Senior Vice President at Transatlantic Reinsurance where he spent 20 years in positions of increasing responsibility. Mr. Salam is a Fellow of the Casualty Actuarial Society and Member of the American Academy of Actuaries.

    Mr. Salam will report to John Hendrickson, Validus’ Director of Strategy, Risk Management and Corporate Development. Mr. Hendrickson commented on the appointment: “I am very pleased that Romel has accepted the position of Validus Group Chief Risk Officer.

    “His skill set, experience and drive will lead Validus’ continued progress on critical enterprise risk management initiatives including capital modeling and exposure management. This internal appointment also further demonstrates Validus’ significant management depth.”

  7. riskviews Says:

    Legal & General (L&G) has named the former managing director of its annuities business, Simon Gadd, as its chief risk officer (CRO).

    Gadd is taking over from Andrea Blance, who has become finance director of the L&G’s savings division. Blance was appointed the firm’s first CRO in 2010.

  8. riskviews Says:

    Endurance Specialty Holdings Ltd’s chief actuary and chief risk officer will step down later this month to take the role of executive director of the Academy of Risk Management and Insurance at St Joseph’s University in Philadelphia.

    Mr Angelina joined Endurance as its Chief Actuary and Chief Risk Officer in June 2005 after a 20 year career that included actuarial roles with CIGNA and Reliance Reinsurance and more recently a 17 year period with Tillinghast and Towers Perrin where he was a senior consulting actuary and ultimately the Managing Principal for the Philadelphia practice.

    During his career, Mr Angelina has made significant contributions both to the actuarial profession and to the practice of risk management in the property and casualty insurance industry, Endurance said in a statement released yesterday. This includes his work in the fields of asbestos and pollution liability, his volunteer work for the American Academy of Actuaries and most recently the development of Endurance into an industry leading practitioner of enterprise risk management.

    Endurance CEO David Cash said: “Since joining Endurance in 2005 Mike has been a key member of Endurance’s management team and has made many important contributions to Endurance as it has evolved from a focused Bermuda company into a US and international insurer and reinsurer.

    “We all wish Mike great success in his new role with St Joseph’s University and we thank Mike and his family for the significant contributions he has made to Endurance’s success.”

  9. riskviews Says:

    “Jon Corzine hired a chief yes officer, instead of a chief risk officer”
    Henri Feuga, Head of Global Risk and Compliance Systems and a Senior Vice President at MF Global from October 2008 until November 2011

  10. riskviews Says:

    Corzine Ignored Chief Risk Officer

    http://www.foxbusiness.com/industries/2011/12/06/report-corzine-ignored-warnings-on-eurozone-bets-from-chief-risk-officer/

  11. riskviews Says:

    The Hartford has appointed Robert Rupp as executive vice president and chief risk officer, reporting to the company’s chairman, president and CEO Liam McGee. Rupp assumes the role on November 2, 2011 from Lizabeth Zlatkus, who is retiring on October 31, 2011 as previously announced.

    Rupp joins The Hartford with more than 30 years of financial services experience across a broad range of disciplines, including risk management, investments, strategy, treasury and regulatory compliance. He most recently served as executive vice president and head of Enterprise-wide Market Risk at BNY Mellon. Prior to that, Rupp was managing director of risk management at JP Morgan Chase. Earlier in his career, he oversaw fixed income trading, sales, syndicate and banking groups at Chemical Bank.

    Previously, Rupp was a partner at the law firm Kutak Rock and a staff attorney at the US Securities and Exchange Commission in Washington, D.C.

  12. riskviews Says:

    ING announces Management Board changes
    Amsterdam, 4 August 2011

    ING announced today that it will appoint Koos Timmermans (Dutch, 1960) as Vice-Chairman of the Management Board Banking as of 1 October 2011. Eric Boyer de la Giroday, currently Vice-Chairman of the Management Board Banking, will retire as of the same date.

    Koos Timmermans, currently Chief Risk Officer and member of the Executive Board of ING Group, joined ING in 1996. He was previously Head of Treasury ING Insurance, Head of Corporate Market Risk Management and deputy CRO of ING Group. In his new role, Koos Timmermans will focus on aligning the strategy and operations of the bank with new and upcoming regulations and optimising the bank’s balance sheet under these regulations.

    Considering his new role, Koos Timmermans will step down from his roles as Chief Risk Officer and member of the Executive Board of ING Group and as member of the Management Board Insurance as of 1 October 2011.

    Koos Timmermans will be succeeded by Wilfred Nagel (Dutch, 1956), who will be appointed Chief Risk Officer and member of the Management Board Banking and Management Board Insurance. The Supervisory Board also intends to propose to shareholders that Wilfred Nagel be appointed as member of the Executive Board and Chief Risk Officer of ING Group at the Annual General Meeting in May 2012. Until that moment, Patrick Flynn (CFO of ING Group) will assume the responsibility for Risk at ING Group level.
    Wilfred Nagel, currently CEO of ING Bank Turkey, joined ING in 1991 and has held various positions including Global Head Credit Risk Management and CEO Wholesale Banking in Asia. Wilfred Nagel brings strong risk management skills as well as operational and international experience.

  13. riskviews Says:

    The World Bank has appointed Madelyn Antoncic as its new vice president and treasurer.

    Ms Antoncic served as Lehman Brothers’ chief risk officer from 2002 to 2007 and following the collapse of the bank, stayed on for a year as managing director and senior advisor at the Lehman Estate, helping to maximise value for creditors.

    In her new role, Ms Antoncic will be responsible for maintaining the World Bank’s standing in financial markets and for managing an extensive client advisory, transaction, and asset management business.

  14. riskviews Says:

    Cinderella Moment
    The credit crisis means chief risk officers are finally being listened to. But how long will it last?
    http://online.wsj.com/article/SB10001424052748704644404575481293971290962.html

  15. riskviews Says:

    PHILADELPHIA (AP) — Lincoln Financial Group said Thursday it promoted Randal J. Freitag to the post of chief financial officer, effective Jan 1.

    Freitag is replacing Frederick J. Crawford, who will assume the newly created position head of corporate development and investments. Freitag and Crawford, both executive vice presidents, will serve on the company’s senior management committee and report to CEO Dennis R. Glass.

    Freitag will lead Lincoln’s financial team, which includes corporate finance, risk management, treasury, corporate tax, corporate actuarial, audit and investor relations.

    Freitag joined the Philadelphia-based company in 1995. He was named chief risk officer in 2007 with overall responsibility for enterprise risk management, capital and liquidity management, equity risk management and treasury.

  16. riskviews Says:

    XL Group plc has announced the appointment of Fielding L. Norton III to the post of senior vice president and deputy chief enterprise risk officer.

    Prior to joining XL he worked for Ironshore as chief risk officer, leading its enterprise risk management since 2007.

    Earlier in his career he worked in the Kansas office of Swiss Re, as chief risk officer of Commercial Insurance.

  17. riskviews Says:

    Prudential PLC (PUK) said Wednesday that John Foley will succeed Thibaut Le Maire as the U.K. insurer’s group chief risk officer beginning in January.

    Le Maire will be moving to U.K. banking group HSBC Holdings PLC (HBC)

  18. riskviews Says:

    Dec. 6 (Bloomberg) — Principal Financial Group Inc., the seller of life insurance and retirement products, said Ellen Z. Lamale is stepping down as chief risk officer early next year after more than three decades with the company.

    Greg Elming, currently senior vice president and controller, will become chief risk officer, the Des Moines, Iowa-based insurer said today in a statement distributed by Business Wire.

  19. riskviews Says:

    Regions Shares Sink On Risk Management Team Shakeup

    NEW YORK (Dow Jones)–Regions Financial Corp. (RF) Chief Financial Officer David Turner said Tuesday a decision to shake up the risk management team of the bank was made by the company in reaction to slow improvement in credit losses, not forced by regulators as some had been speculating Tuesday.

    Turner, making a presentation, said Chief Executive Grayson Hall and the board of directors made the decision when they didn’t feel credit losses were being improved fast enough.

  20. riskviews Says:

    American International Group Inc.’s (AIG) chief risk officer, Robert Lewis, is retiring after holding the post for more than six years, Chief Executive Robert Benmosche said in a letter to employees Tuesday.

    Lewis has been AIG’s chief risk officer since July 2004, having been appointed to that role by then-Chief Executive Maurice R. “Hank” Greenberg. He kept the job under Greenberg’s four successors, including through AIG’s near-collapse and government bailout in 2008.

  21. riskviews Says:

    Among the executive changes, Swiss Re said Chief Risk Officer Raj Singh will leave for personal reasons effective Feb. 28, 2011. David Cole, chief financial officer and CRO at ABN AMRO Bank N.V. in Amsterdam, will join Swiss Re as Mr. Singh’s successor, Swiss Re said in the statement.

  22. riskviews Says:

    Bank of America’s former Chief Risk Officer Amy Woods Brinkley found another part-time gig last week when it was announced that she’d joined TD Bank’s board of directors. Lots of bank CROs were ousted during the crisis, but for the first time ever they’re probably thankful for new bank regulations. Despite any disgrace that might have accompanied job loss, this group of “formers” can probably expect a rash of part-time job offers as firms look to comply with the section of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act that mandates that if an institution has more than $10 billion in assets it must have a risk committee, and that each board include an executive who has prior experience running a risk operation at a sufficiently complex institution.

    The rules aren’t entirely complete yet, though. The Federal Reserve is required to pass risk committee rules by July 21, 2012, and those rules are required to kick in by October 21, 2012.

  23. riskviews Says:

    Aviva UK chief executive officer Mark Hodges made improving the firm’s risk management a top priority after taking up the role, according to the insurer’s group chief risk officer Robin Spencer.
    Mr Spencer told British Insurance Summit delegates that companies like Aviva are increasingly putting risk management on the board level agenda throughout the world: “That is a reality. One of the biggest changes we have made is promoting risk management to the executive board.

    “When our new UK CEO came in, he said one of the top priorities was risk management. His first email to everyone said: ‘This is important… people are aware that this is an issue that we need to address. And as Solvency II gets implemented, it will become an even more important issue that ends up on everyone’s desks’.”

    Mr Spencer told delegates that the cultural changes needed to make risk management a key part of an insurer’s processes must begin at “the top”.

    He added the November 2009 appointment of Craig Thornton as UK chief risk officer at Aviva, responsible for leading the risk management and governance agenda of the domestic business, was evidence the insurer took the issue seriously: “That in itself is a very big statement, with the role of the chief risk officer, and where it sits in the organisation.”

  24. riskviews Says:

    WILMINGTON, Del., Aug 23, 2010 (BUSINESS WIRE) — Wilmington Trust /quotes/comstock/13*!wl/quotes/nls/wl (WL 8.54, +0.07, +0.83%) announced today that it has hired Carol Baldwin Moody as senior vice president and chief risk officer to head a newly centralized Enterprise Risk Management Division. An attorney and 25-year financial services industry veteran, Ms. Baldwin Moody has extensive U.S. and international experience in legal, compliance, and risk management in the banking, insurance, pension, private equity, and mutual fund sectors.

    At Wilmington Trust, Ms. Baldwin Moody leads the direction and execution of all aspects of risk management, including credit, legal, compliance, fiduciary, financial, operational, reputational, strategic, technology, fraud, human resources, and business-continuity risk. She is responsible for ensuring consistency in, and adherence to, the company’s framework of risk management standards, policies, and procedures. She reports directly to Donald E. Foley, Wilmington Trust’s chairman and CEO. She also works closely with the company’s general counsel, Michael A. DiGregorio, and the Board of Directors’ Risk Management Committee. The Risk Management Committee, which is chaired by lead director Louis J. Freeh, oversees her efforts and will conduct her performance reviews.

    “Given the changing regulatory landscape and our plans to expand our Corporate Client and Wealth Advisory businesses internationally, centralizing our risk management activities became imperative,” said Mr. Foley. “Carol’s broad-based background made her the ideal candidate to lead our risk management efforts, and we expect to benefit greatly from her expertise.”

    Ms. Baldwin Moody joined Wilmington Trust from Nationwide Insurance, where she was senior vice president and chief compliance officer. In that role, she led a centralized team of professionals who worked to ensure regulatory compliance and the alignment of all risk management activities throughout the company. Prior to Nationwide, Ms. Baldwin Moody was chief compliance officer for TIAA-CREF, where the scope of her responsibilities included compliance management of the organization’s mutual fund complex and investment advisors. She also served as managing director and general counsel of TCW/Latin America Partners, a private equity firm. Before that, she worked for Citicorp, where she started as a senior attorney and rose to become head of compliance for the Global Relationship Bank and the first African-American woman on Citicorp’s corporate leadership team. She began her career as a corporate attorney at the law firm of Debevoise & Plimpton. A native of Philadelphia, Ms. Baldwin Moody holds a bachelor’s degree in finance from the Wharton School of the University of Pennsylvania and a juris doctor (J.D.) degree from Columbia Law School.

  25. riskviews Says:

    Now hiring, Chief Risk Officers

    Anjali Prayag

    Bangalore, Aug 23

    Global downturn as well as the fall from grace of financial giants has spurred Indian corporates including several non-finance companies to increasingly hire chief risk officers (CROs).

    According to global search firms based out of India, companies cutting across all sectors are becoming more aware of corporate risk management and are taking steps to hedge themselves against any risks which could undermine their reputation or lead to their downfall.

    Global search firm Korn/Ferry International India, for instance, has done four such mandated searches (two for the tech sector, one each for industrial and consumer sector) in the first quarter of this year. Mr Joy Nandi, Partner and Practice Lead, Technology and Professional Services, Korn/Ferry International India, says “CROs will look at all types of risks (operations, sales, supply chain) and not restrict themselves to internal audit roles.”

    Agrees Mr N Srinivas, Partner, Board Practice, Maxima Global Executive Search India, “We are seeing this kind of roles in the pharma and infrastructure sectors. Pharma needs an uninterrupted supply chain and distribution cycle, and so does infrastructure.” Talking about the talents of the youth in the country, he said 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

  26. Dave Ingram Says:

    Some 89% of pension plans, endowments, foundations, sovereign wealth funds, hedge funds and other asset managers have a chief risk officer, compared with 70% last year, according to a Capital Market Risk Advisors survey on risk governance practices at financial institutions.

    While there is wide agreement among the 66 institutions surveyed of the need for a chief risk officer, “opinion varies as to whether the CRO should have both a strategic/consultative role or just a control role,” said a report on the survey, Risk Governance: a Benchmarking Survey 2010.

    Among respondents with CROs, 66% said their officers have both strategic and control duties, up from 47% last year, the survey found.

    In addition, 84% of those have private sessions between the CRO and the board’s risk committee or the full board, without management in attendance at most meetings, up from last year’s 44%.

    Among other results, 57% of respondents have a risk appetite statement, whose definition includes the ways an institution wants to take risk and the variability of results they want to accept. That’s up from 37% last year.

    Of respondents with risk appetite statements, 56% include in the statements attitudes on liquidity needs; 43% address consequences on breaching risk limits, including when the breach makes or loses money; 35% include how much to invest in hard to value assets; 33% include how much to invest in complex investments; and 33% address lack of transparency in investments.

    The greatest concern cited by risk managers for the second half of this year is government changing the rules that affect investment and capital markets, cited by 40%, up from 38% last year, when it also ranked at the top.

    Other top concerns for the second half of the year are volatility and credit losses, cited each by 19%; inflation, 6%; and counterparty risk, 2%. By contrast, last year, respondents ranked as their second top concern inflation, cited by 26%, followed by credit losses, 21%; counterparty risk, 7%; accountants changing the rules, 5%; and volatility, 2%.

  27. riskviews Says:

    Brian Leach, chief risk officer at Citigroup Inc., knows well the downsides of risky bets. He paid for one of his own.

    As an options trader for Morgan Stanley in 1992, Mr. Leach bet wrongly that European government bonds would track British government debt. He lost a half-year’s worth of his trading profit after the surprise election of British Prime Minister John Major’s Conservative party.

    Now, he is trying to apply at Citigroup one lesson he learned from the incident: quickly cutting losses. “It really helped define for me what downsides could look like,” he says—particularly from extreme events.

  28. riskviews Says:

    Jeff Fitch has been named senior vice president and chief risk officer for Aviva USA, the company announced Monday.

    Fitch joined the Des Moines insurance and financial services company in 2009 at vice president of risk management.

    Fitch will report to Dan Guilbert, executive vice president and chief risk officer for Aviva North America, with dotted-line accountability to Aviva USA President and CEO Chris Littlefield.

    “Jeff’s work promoting risk awareness and working with senior leadership provides him the ideal experience for this role,” said Guilbert in a statement.

    Prior to joining Aviva USA, Fitch served in a variety of actuarial roles at Principal Financial Group, including senior actuary with a focus on risk management and financial modeling.

    He is a fellow of the Society of Actuaries, a member of the American Academy of Actuaries, and a chartered enterprise risk analyst. Fitch is a 1995 graduate of the University of Nebraska at Lincoln with a BA in actuarial science and mathematics.

  29. riskviews Says:

    Legal & General Group has named Andrea Blance to the new role of group chief risk officer.

    Ms Blance, who is currently group financial controller, will take up her new role in August 2010, and will join the group’s executive committee. The appointment is subject to FSA approval.

    In her new role, Ms Blance will report to Nigel Wilson, group CFO and will work closely with the group’s risk committee, or GRC, which is chaired by John Stewart.

    Ms Blance has 25 years of financial services experience. In her most recent role as group financial controller at Legal & General she has been responsible for driving return on capital performance through pro-active capital management and developing the group’s financial performance management framework. She has held a number of key divisional finance roles responsible for cost management and delivering profitability.

    Ms Blance said: “It will be exciting and challenging to work closely with the GRC and John Stewart, who with Sir David Walker and other Legal & General Board members has been instrumental in promoting good corporate governance and risk management both at Legal & General and more broadly across the UK corporate scene.”

  30. riskviews Says:

    Dan Guilbert, former chief actuary at Hartford Life Insurance Co., is the new chief risk officer for the North American arm of rival British insurer and annuities issuer Aviva plc.

    Guilbert reports to Aviva North America CEO Igal Mayer. Until recently, Chicago-based Aviva North America’s risk group was part of Aviva plc’s finance operation. He will work closely with Aviva plc Chief Risk Officer Robin Spencer.

    Guilbert spent 14 years at Hartford Life, assessing risk in the Simsbury insurer’s life and annuity portfolio.

    Last August, he was named Hartford Life’s chief actuary and named to the senior management committee.

  31. riskviews Says:

    Before its collapse, Kaupthing lent $12 billion in deals that were “if not illegal, completely unethical,” Iceland Prime Minister Johanna Sigurdardottir said in August.

    Four people have been detained in the Kaupthing probe, which had been Iceland’s largest bank before its 2008 collapse. They include the bank’s former Chief Executive Officer Hreidar Mar Sigurdsson, former Iceland Chief Executive Officer Ingolfur Helgason and the former head of the bank’s Luxembourg branch, Magnus Gudmundsson. Kaupthing’s former Chief Risk Officer Steingrimur Karason has been banned from leaving the island.

  32. riskviews Says:

    ING U.S. Hires Prakash Shimpi as Chief Risk Officer

    NEW YORK, April 22– ING U.S. announced today that Prakash Shimpi has been hired as Chief Risk Officer for ING U.S. Shimpi joins ING from Towers Watson where he was the Global Practice Leader for Enterprise Risk Management, as well as President and CEO of Towers Watson Capital Markets.

    As Chief Risk Officer for ING U.S., Shimpi will oversee the enterprise-wide risk monitoring and management program for ING’s U.S. insurance operations. His responsibilities will include managing the framework for measuring, controlling, hedging, and pricing risk, as well as compliance with all global financial reporting standards for the company.

    Prakash has more than 25 years of risk management experience in the financial services industry. In his most recent role with Towers Watson, Shimpi was the managing principal and global leader for the firm’s Enterprise Risk Management (ERM) practice. In this role, he oversaw all aspects of the Towers Watson ERM consulting practice, as well as providing finance, risk management and investment management expertise to corporate clients.

    “We are fortunate to have someone with Prakash’s extensive background and expertise to lead our risk management program in the U.S.,” said Rob Leary, Chief Executive Officer, ING U.S. “As a leader in Retirement and Life Insurance, it is incumbent upon ING to appropriately manage the known and unknown risks that may face our customers, distribution partners, shareholders and employees. We believe Prakash is an exceptional addition to our management team and will continue to enhance our risk management practices to benefit key stakeholders.”

    • pete Says:

      Hopefully, Shimpi and others have learnd their lesson:

      From Time Magazine March 17, 2008

      The situation is exacerbated by the heavy trading volume of the instruments, the secrecy surrounding the trades, and — most importantly — the lack of regulation in this insurance contract business. “An original CDS can go through 15 or 20 trades,” said Miller. “So when a default occurs, the so-called insured party or hedged party doesn’t know who’s responsible for making up the default and if that end player has the resources to cure the default.”

      Prakash Shimpi, managing principal at Towers Perrin, downplays this risk, noting that contractual law requires both parties to inform and get approval from the other before selling the CDS policy to someone else.

      …Shimpi admits a meltdown or even a slowdown in the CDS market would affect the amount and cost of liquidity in the market. However, he dismisses concerns that municipalities and others seeking capital could be left in the dust. “Even if the U.S. takes a hit, there are other markets in the world that have different dynamics, and capital flows are international,” he said.

      Oops!

  33. riskviews Says:

    Number of public banking institutions with a chief risk officer nearly doubles
    21/04/2010

    The FINANCIAL — The trend for banks to have a chief risk officer is picking up steam, according to Grant Thornton LLP’s 17th Bank Executive Survey, conducted in conjunction with Bank Director magazine.

    http://finchannel.com/news_flash/Banks/62515_Number_of_public_banking_institutions_with_a_chief_risk_officer_nearly_doubles/

  34. riskviews Says:

    While Mr. Mack’s pay was limited to his $800,000 salary and about $400,000 in other benefits, Morgan Stanley’s chief risk officer, Kenneth deRegt, collected a pay package of $10 million.

  35. riskviews Says:

    A Deloitte & Touche LLP executive in charge of advising companies on Solvency II issues has been named group chief risk officer at Torus, a global specialty insurer.

    Carl Groth will report to Torus Chief Executive Officer Clive Tobin in his new role and will drive development of the insurance group’s enterprise risk management program.

    Groth had worked as a director of regulatory and capital markets at Deloitte & Touche, and led the consulting firm’s enterprise risk management practice for U.S. insurance.

    Insurers have followed a strategy deployed in the banking sector in which a chief risk officer role has evolved into an executive-level position and assesses risk on a company-wide basis. Groth told BestWire that his chief risk officer position will have the authority to escalate a more rigorous review process on certain aspects of business operations, should circumstances merit.

    He said the opportunity will allow him to help establish and deploy an approach that to now he has worked with other companies to create. Groth also said he has known and admired Tobin’s work throughout his career. He also was interested in helping to develop a global underwriting platform that Torus is pursuing.

    “This was an opportunity that I could not pass up,” Groth said.

  36. riskviews Says:

    Aladdin Capital Holdings has appointed Thomas Donahoe as global risk officer, Pensions & Investments reports. In his new role, he will structure a risk framework across the alternative investment manager’s global asset management and investment banking operations.

    Previously, Donahoe was chief risk officer at Angelo Gordon. The risk officers of Aladdin’s various units will now report to Donahoe. His positions is a newly created one.

  37. riskviews Says:

    Chartis Inc., a world leader in property-casualty and general insurance, today announced that Samir Shah has been named Senior Vice President and Chief Risk Officer for Chartis, responsible for the organization’s worldwide risk management strategies.

    “We are very pleased to have Samir join Chartis’ executive management team,” said Kristian P. Moor, President and Chief Executive Officer of Chartis. “Samir has demonstrated expertise in strengthening critically important risk management processes and systems, and his appointment further enhances our world-class capabilities.”

    Mr. Shah joins Chartis from Validus Holdings Ltd., where he held the position of Executive Vice President and Chief Risk Officer. Prior to Validus, Mr. Shah worked as Executive Vice President and Chief Risk Officer for Scottish Re Group. He also was employed at Towers Perrin as a Principal, responsible for development of the firm’s intellectual capital and delivery of client services in risk and capital management. Mr. Shah has also held consulting and actuarial positions with Watson Wyatt Worldwide and William M. Mercer, Inc. He holds B.S. and M.S. degrees from Northwestern University.

  38. riskviews Says:

    Harvard University has appointed Neil Mason as chief risk officer for its investment management unit, Reuters reports. He will be replacing Daniel Kelly, who has left the Harvard Management Company, and will report to CEO Jane Mendillo.

  39. Dave Ingram Says:

    Reinsurance provider PartnerRe Ltd announced today that it has appointed Jerome Carre as PartnerRe group risk management director, effective from 1 January 2010.
    Carre will be responsible for coordinating PartnerRe’s risk management practices at the group level, including aggregation and reporting risk exposure and facilitating execution of its risk management framework. He will report to the company’s CEO Patrick Thiele.

    Currently chief risk officer for PARIS RE since 2007, Carre has 20 years of experience in the reinsurance industry and was also chief actuary at AXA RE.

  40. riskviews Says:

    Denmark’s largest bank Danske Bank A/S (DANSKE.KO) Wednesday said it will make a number of organizational changes effective from the new year, including creating a chief risk officer position.

  41. riskviews Says:

    Gulf Bank has announced that it has appointed Mr. Saleem Sheikh as Chief Risk Officer/ GM Risk Management at Gulf Bank, following the approval of the Central Bank of Kuwait.

    Saleem has 29 years experience in the banking sector with internationally renowned companies: Citibank, Barclays and Arab Bank. He began his banking career with Citibank in 1981 and went on to hold a variety of senior corporate banking and Risk roles in Pakistan, UAE, Nigeria and South Africa.

    Saleem joins us from Arab Bank, where he was the Group Chief Credit Officer from 2006 to 2009, responsible for credit risk practices and credit sanctioning, Credit Policy Supervision, Portfolio Management, Country Risk, and Cross Border exposure.

    Before Arab Bank, Saleem had spent five years at Barclays, first as Chief Operating Officer, Africa Corporate and Merchant Banking, based in Johannesburg, and then as Regional Managing Director in Dubai with extended responsibilities for North Africa and the Middle East. Throughout that period, he was a member of the Executive Committee at Barclays Africa and the Middle East.

  42. riskviews Says:

    OUTGOING European internal market commissioner Charlie McCreevy has called for new rules which would force risk officers in banks to bypass chief executives and other senior executives and report directly to a special committee of non-executive directors.

    In a speech at the annual lunch of the Institute of Directors in Dublin yesterday, Mr McCreevy said a bank’s chief risk officer should be supervised in the same way as internal auditors.

  43. riskviews Says:

    Anchor BanCorp restructures

    Leaders of Anchor BanCorp Wisconsin have taken a series of steps since January to shore up the 90-year-old thrift institution.

    They have strengthened the company’s structure and recruited executives with a variety of financial experience, diluting the power of Doug and Mark Timmerman, the father and son who have led the financial institution for many years.

    David Omachinski, a member of the board of directors, was named lead director, a new position. Omachinski is a former president and chief operating officer of Oshkosh B’Gosh.

    Chris Bauer became president and chief executive officer of Anchor BanCorp, succeeding Doug Timmerman, who retired. Bauer also was named CEO of subsidiary AnchorBank, taking over from Mark Timmerman, who is now the bank’s president and chief operating officer, Bauer is chairman of the boards of both Anchor BanCorp and AnchorBank.

    New positions have been added to AnchorBank’s management structure to better manage its loans and risk level. Martha Hayes came on as chief risk officer in August. Hayes was president and managing director of Merrill Lynch Business Financial Services in Chicago.

  44. riskviews Says:

    Other Aviva announcements included the appointment of David McMillan, the chief operating officer of UK general insurance to be its chief executive; Cathryn Riley, chief operating and information officer for Aviva’s European business, to be the new UK commercial director; and Craig Thornton, managing director of Swiss Re’s UK life and health reinsurance business, to be the new UK chief risk officer responsible for leading the risk management and governance agenda.

  45. Dave Ingram Says:

    Anglo’s chief risk officer leaves post
    26/11/2009 – 10:39:49

    Anglo Irish Bank’s chief risk officer Peter Butler has stepped down from his position just 10 months after taking up the role.

    Peter Butler only took up the job in January as a replacement for Anglo’s former chief financial officer Wille McAteer.

    Mr McAteer stepped down alongside three other senior executives following the revelation of hidden loans to bank directors.

  46. riskviews Says:

    Wall St Journal LONDON—An independent commission on corporate governance at U.K. banks on Thursday issued a final report recommending tough new rules seeking greater disclosure of high-end compensation and calling on boards to more closely monitor risk.

    The report was commissioned by the U.K. government and drawn up by David Walker, a former executive director of the Bank of England and now a senior adviser to Morgan Stanley.

    Over some banks’ objections, the report also calls for the establishment of independent risk committees at the board level, as well as mandating that banks employ a chief risk officer that can be fired only with the agreement of the board.

  47. riskviews Says:

    Continental Reinsurance Plc has employed the service of an astute Actuary as its Chief Risk Officer (CRO).

    The company has in recent times employed a good number of staff in line with its expansion drive with reference to its offshore spread to Franco and Anglo-phone countries. Continental Reinsurance already has regional offices in Cameroon, Nairobi and Tunisia.

    Alexandre Aquereburu, 31, is a Fellow of the Institute of Actuaries (England) and has a first class honours degree in Actuarial Science from Heriot-Watt University in Edinburgh (Scotland). Alex is one of the rare actuarial fellows in West Africa and his appointment is a sign of Continental Re’s ambitions.

    Prior to his appointment as Chief Risk Officer of Continental Reinsurance Plc, Alex has worked in a number of roles for two of the world’s largest insurance groups, namely Aviva and Allianz in the United Kingdom. Alex also operated for a number of years as a consultant for Milliman, a large US actuarial consultancy.

  48. riskviews Says:

    BankUnited has named Randy R. Melby executive vice president and chief risk officer. In his new role Melby will be responsible for risk oversight, which includes loan review; internal audit; compliance, including BSA and AML; corporate fraud investigations and overall operations and credit risk management.

    Melby joins BankUnited from Washington Mutual/JP Morgan Chase in Seattle, where he served as senior vice president and general auditor for five years

  49. riskviews Says:

    SemGroup announces CRO
    TULSA, Okla. – (Business Wire) SemGroup, L.P. announced today that the company has selected David Gorte as its chief risk officer (CRO). The CRO will report directly to Norm Szydlowski, SemGroup’s presumptive chief executive officer. Gorte will be responsible for developing risk management governance and for independent risk management assessments of transactions and strategies.

    Gorte has twenty-eight years of risk management and financing experience related to the energy industry. Immediately prior to joining SemGroup, Gorte served as senior advisor for The Claro Group. Gorte also has served as senior vice president and chief risk officer of Cheniere Energy, Inc., where he was responsible for creating and managing an enterprise-wide risk management organization for the company and its subsidiaries. Gorte’s experience also includes risk management and financing origination, structuring, and syndication positions at Enron Corp., Citigroup, Bankers Trust Company (now Deutsche Bank), and Bank of America.

  50. riskviews Says:

    RTI International Wins Second Alexander Hamilton Award for Enterprise Risk Management
    11-20-2009

    RESEARCH TRIANGLE PARK, N.C. — For the second year in a row, RTI’s enterprise risk management program has been named a gold winner of the Alexander Hamilton award by Treasury & Risk magazine.

    The magazine gave its 2009 gold award to RTI in recognition of enhancements made to its enterprise risk management program during the past year, including new reporting tools.

    The award was accepted by Treasurer and Chief Risk Officer Ward Sax and Enterprise Risk Management Program Senior Manager Jennifer MacKethan at a recent ceremony in New York City.

  51. riskviews Says:

    Canada’s P&C industry behind other sectors in establishment of CROs
    http://www.canadianunderwriter.ca

    Canada’s property and casualty industry has been lagging in the establishment of the Chief Risk Officer position, and the processes that accompany it, Julie Dickson, the superintendent of financial institutions, said.
    Dickson spoke at OSFI’s first risk management seminar for the p&c industry on Nov. 5 in Toronto.
    “While the p&c industry has perhaps been ahead of the other sectors in the management of specific risks, the establishment of the CRO position, and the processes that accompany it, which allow for quicker assessment of risk across an entire organization, have been slower to develop in the p&c industry to date,” she said.
    The concept of risk management is not new, she acknowledged, and the p&c industry has many inherent known risks — such as being highly price competitive, prone to cycles where at times pricing can be too low to cover claims, and having some business lines where pricing and claims payment terms are highly regulated.
    “OSFI recognizes that the p&c industry has a diversity of institutions in terms of their size, number and complexity of business lines, risk appetite, etc., and that all of these factors will logically lead to different requirements with respect to the robustness of the risk management program,” she continued.
    “However, I cannot overemphasize the importance of having an organization-wide risk management in place to help manage the numerous known, unknown and emerging risks that p&c institutions face in these challenging times.”

  52. riskviews Says:

    A recent cluster of hiring in senior risk-management executives points to the growing focus on the function at major financial-services firms. Demand is heating up as risk processes, controls and governance are increasingly seen as a strategic imperative and more firms grow reluctant to fall back on the guidance of rating agencies and regulators, recruiters report.

    Here’s a look at some recent high-profile hires in the field:

    — The Federal Housing Administration hired Bob Ryan, a 25-year veteran of Freddie Mac, as the FHA’s first senior risk officer. Ryan had most recently been vice president of portfolio management and pricing in Freddie’s single-family credit guarantee division.

    — UBP Asset Management, Union Bancaire Privee’s fund-of-funds management arm, hired Daniel Kelly, 43, as chief risk officer of alternative investment, a newly created position. He had been CRO of the Harvard University endowment. The Geneva-based bank’s funds-of-funds and client portfolios had about $700 million invested with Ponzi schemer Bernie Madoff.

    — The Hartford Financial Services Group named Lizabeth Zlatkus as the new chief risk officer of the company. She is currently chief financial officer at the firm and will start her new job when a replacement CFO is hired.

    — Lincoln Financial Group hired Anant Bhalla as corporate treasurer and head of risk management. He had been corporate treasury and enterprise risk management for Ameriprise Financial.

    — TD Ameritrade scooped up David Kimm as chief risk officer. Kimm, 30-year industry veteran, was most recently Wells Fargo Advisors’ chief risk officer.

  53. Dave Ingram Says:

    The Hartford Announces That Lizabeth Zlatkus Will Be Named Chief Risk Officer; Company Launches Search For CFO
    Mon Oct 26, 2009 4:16pm EDT

    HARTFORD, Conn.–(Business Wire)–
    The Hartford Financial Services Group, Inc. (NYSE: HIG) announced today that
    Lizabeth Zlatkus, the company`s Chief Financial Officer, will be appointed Chief
    Risk Officer (CRO). In addition, the company is launching an external search for
    a new CFO. Zlatkus will remain in her current role until a new CFO is named, at
    which point she will assume her new position. Both the CFO and the CRO roles
    will report directly to the company`s Chairman and Chief Executive Officer, Liam
    E. McGee, with the CRO leading the risk management function for the corporation.

    “One of the priorities I established when I became CEO of The Hartford was to
    elevate the role of risk management,” said McGee. “We must ensure that we have
    the right risk processes, controls and governance to serve as our core
    foundation. Liz is uniquely suited for the CRO role. She has 26 years of
    industry and institutional knowledge, coupled with strong leadership, analytical
    and operational skills. We will move quickly to hire a successor to Liz for the
    CFO position.”

  54. riskviews Says:

    FHA To Tap Freddie Mac Exec As CRO
    10-20-2009 | Source: Total Securitization – Click here to take out a FREE Trial

    The Federal Housing Administration reportedly will name Bob Ryan as its first chief risk officer, The Washington Post reports. Ryan has been with Freddie Mac for 27 years, where he currently oversees pricing, securitizations and credit-portfolio functions in the lender’s single-family credit guarantee business. According to an e-mail penned byDonald Bisenius, executive v.p, of the FHA, his last day at Freddie Mac will be Oct. 23.

    Click here to read the story from the Washington Post.
    http://www.washingtonpost.com/wp-dyn/content/article/2009/10/16/AR2009101603430.html

  55. riskviews Says:

    Lincoln Financial Appoints New Corporate Treasurer, Head Of Risk Management
    Published: 19-Oct-2009

    Bhalla is responsible for corporate finance, insurance, enterprise risk and capital management
    Lincoln Financial Group has appointed Anant Bhalla as corporate treasurer and head of Risk Management.

    In his new role, Bhalla is responsible for corporate finance, corporate insurance, treasury operations, liquidity management, enterprise risk and capital management, economic capital and pricing oversight. Bhalla reports to Randy Freitag, chief risk officer of Lincoln Financial.

    Prior to joining Lincoln Financial, Bhalla was responsible for corporate treasury and enterprise risk management for Ameriprise Financial.

    Fred Crawford, executive vice president and CFO of Lincoln Financial, said: “Anant Bhalla’s experience in treasury and strategic analysis, coupled with his extensive corporate finance and risk management background, makes him the ideal person to serve as treasurer for Lincoln Financial.”

  56. riskviews Says:

    NEW YORK (Reuters) – Bank of America Corp’s (BAC.N) board has narrowed the list of company candidates to replace retiring chief executive Kenneth Lewis to the bank’s chief risk officer and its consumer and small-business banking chief, The Wall Street Journal reported on its website on Tuesday.

    Chief Risk Officer Gregory Curl, 61, likely would keep the job for no more than two years, the Journal said. The small-business banking chief, Brian Moynihan, is 49 and would be a longer-term choice, the Journal reported.

    An external candidate under consideration is former Merrill Lynch & Co President and Chief Operating Officer Gregory Fleming, the Journal said. Fleming is a senior research scholar and lecturer at Yale Law School.

    Bank of America spokesman Bob Stickler declined to comment on the Journal’s report.

    “The committee is looking to complete its search process sooner rather than later,” he said, adding that he expects the process to be completed “well, well before December 31st.”

  57. Dave Ingram Says:

    Aviva plc announces executive shuffle, Canadian CEO become group’s chief risk officer

    Aviva plc has announced a series of executive-level shuffles that will see Igal Mayer appointed CEO, North America, and the current CEO of Canada, Robin Spencer, promoted to chief risk officer (CRO) for the organization.

    Both appointments are effective Jan. 1, 2010.

    In his new role, Spencer he will become a member of the executive committee and report to Andrew Moss, Aviva group chief executive.

    Currently the group’s CRO reports to the chief financial officer (CFO). “The changes are about creating a risk function that is fit for the future, embraces best practice and provides a solid foundation for the transition to Solvency II,” information from the company says.

  58. riskviews Says:

    Sep 24, 2009 (M2 EQUITYBITES via COMTEX) — PPL | Quote | Chart | News | PowerRating — Energy company PPL Corp (NYSE:PPL) reported on Wednesday the appointment of industry veteran J. Matt Simmons as vice president of risk management and chief risk officer.

    Simmons replaces Vijay Singh, who is resigning from the company.

    Most recently, Simmons served as PPL Corporation’s vice president and corporate controller since February 2006.

  59. Dave Ingram Says:

    CCP12 Elected New Executive Committee

    Further market improvement to lower systemic market risk as main goal
    Members underscore commitment to continue fruitful discussion with regulators Hong Kong,

    Frankfurt/Main, 24 September 2009 – The members of CCP12 – The Global Association of Central Counterparties – elected a new Executive Committee at the special general meeting in Hong Kong. The world’s major providers of central counterparty (CCP) clearing services – CCP12 – held their meeting on 18 September 2009 hosted by Hong Kong Exchanges and Clearing Limited. The new chairperson will be with immediate effect Mr Marcus Zickwolff, Executive Director, Eurex Clearing AG. He takes over responsibilities from Anne T. Brown, Chief Risk Officer, Australian Securities Exchange Ltd. (ASX). Anne Brown had served as chairperson since April 2008, and she will continue to serve as a member of the CCP12 Executive Committtee. New elected Vice-Chairs are Luis Jorge Pelayo, Risk Manager, S.D. Indeval and CCV, and Siddhartha Roy, Chief Risk Officer, Clearing Corporation of India Ltd. “I am very honoured to chair this group and I would also like to thank Anne for her outstanding work and dedication”, said Marcus Zickwolff. “The financial crisis has revealed which important role clearing houses play as they contribute to minimising and managing global systemic risk. In particular, central clearing and trading on exchanges have proven to remain very resilient throughout these challenging and turbulent times.” Anne Brown stated: “We have to establish a common voice of CCPs on a global scale in order to be able to make ourselves heard and to make an impact on discussions currently led by policy makers and regulators worldwide. I will support Marcus’ chairmanship as the discussions open a unique window of opportunity for us to strengthen the role of clearing houses and especially of CCPs.”

  60. riskviews Says:

    Insurers Found Unclear Delineating Chief Risk Officer’s Role
    * By CAROLINE MCDONALD

    NU Online News Service, Sept. 15, 1:59 p.m. EDT

    While many insurers have adopted the concept of a chief risk officer, a CRO’s functions and authority are largely underdeveloped, according to a new study by Deloitte.

    The study, “Insurers Risk Intelligence: New Insights and Opportunities for Risk Management,” released yesterday, discusses the complexity of the industry’s risk exposures and the opportunities to enhance risk management practices.

    Regarding CROs, the report found their function within companies is relatively new and their authority level largely underdeveloped, particularly in relation to other key C-Suite positions.

    For example, the reporting line of the CRO in most insurance companies is to the chief financial officer, not the chief executive officer, according to Deloitte.

    Additionally, for many companies that have CROs within business units and at the corporate level, reporting lines for business unit CROs appear to be predominantly within the business units, rather than to the corporate risk function, Deloitte said.

    Reporting lines for the CRO to the CEO and reporting lines for business unit CROs to the corporate CRO may be appropriate to promote the proper authority level and oversight role of risk management, the report advised.

  61. riskviews Says:

    It was up to you, New York: global meltdown

    Richard Gluyas | September 12, 2009
    Article from: The Australian

    A YEAR after the Lehman Brothers collapse, Commonwealth Bank chief risk officer Alden Toevs’ dissection of why things went so terribly wrong for the US financial system was blunt and to the point.

    Toevs, who once headed mortgage research at Morgan Stanley and then spent 18 years consulting with First Manhattan to more than 100 banks, said banks here were better places to work, had superior management, a better regulatory system, and “less contorted” product sets.

    What he meant, no doubt, was the elaborate transformation of the humble US housing loan into complex derivatives that, to this day, defied common understanding, let alone proper valuation.

    “It’s more of a blessed economy here, so don’t ask me to go back to New York any time soon,” Toevs said.

    You can understand his reluctance. The peak-to-trough performance of the US and British banking indexes does a disservice to the word collapse.

  62. riskviews Says:

    Anglo Irish hires Citigroup executive as risk officer
    Mon Sep 14, 2009 7:29am EDT

    DUBLIN, Sept 14 (Reuters) – Nationalised lender Anglo Irish Bank has hired a Citigroup (C.N) executive as chief risk officer to beef up its board and rebuild trust after a slew of scandals.

    Anglo Irish Bank said on Monday that Peter Rossiter, who until recently was chief risk officer of Citi Handlowy in Poland, would start his new role on Nov. 2.

  63. riskviews Says:

    Troubled Belgian Bank Reshuffles Management

    By LANDON THOMAS Jr.
    Published: July 1, 2009

    LONDON — Under pressure from regulators and investors, the Belgian bank KBC has reshuffled its management, replacing the executive who oversaw the bank’s disastrous plunge into the securitized credit market and separating the risk management and financial management functions.

    The bank also announced that it would split the roles of chief financial officer and chief risk officer, which until now had been a single function. Luc Philips, who had held both jobs, will retain the financial officer title, while Chris Defrancq will become risk officer.

    Investors had challenged the dual role, asserting that not enough attention was being paid to risk management. KBC has said publicly that all credit and risk decisions were approved by executives in Brussels and that its financial products division suffered a fate similar to many other institutions because of the global credit meltdown.

  64. riskviews Says:

    June 5, 2009
    Bank of America Ousts Head of Risk Oversight
    By LOUISE STORY and ERIC DASH

    Facing pressure from federal regulators to improve its risk oversight, Bank of America forced out its chief risk officer on Thursday and continued a shake-up of its board.

    The officer the bank replaced, Amy Woods Brinkley, 53, was one of the highest ranking women on Wall Street. It also disclosed that Robert Tillman, a former chief executive of Lowe’s, resigned from the board last week, shortly after O. Temple Sloan quit. More board members may depart in coming weeks.

    Regulators want to ensure that the bank has a stronger handle on its balance sheet and capital needs after it wrote off billions of dollars from credit cards and mortgages. Citigroup, which also received taxpayer support, took similar actions over the last year.

  65. riskviews Says:

    At Freddie Mac, chief disregarded warning signs
    By Charles Duhigg
    Published: Tuesday, August 5, 2008

    The chief executive of the mortgage giant Freddie Mac rejected internal warnings that could have protected the company from some of the financial crises now engulfing it, according to more than two dozen current and former high-ranking executives and others.

    That chief executive, Richard Syron, in 2004 received a memo from Freddie Mac’s chief risk officer warning him that the firm was financing questionable loans that threatened its financial health.

    Today, Freddie Mac and the nation’s other major mortgage finance company, Fannie Mae, are in such perilous condition that the U.S. government has readied a taxpayer-financed bailout that could cost billions. Though the current housing crisis would have undoubtedly caused problems at both companies, Freddie Mac insiders say Syron heightened those perils by ignoring repeated recommendations.

    In an interview, Freddie Mac’s former chief risk officer, David Andrukonis, recalled telling Syron in mid-2004 that the company was buying bad loans that “would likely pose an enormous financial and reputational risk to the company and the country.”

    Syron received a memo stating that the firm’s underwriting standards were becoming shoddier and that the company was becoming exposed to losses, according to Andrukonis and two others familiar with the document.

    But as they sat in a conference room, Syron refused to consider possibilities for reducing Freddie Mac’s risks, said Andrukonis, who left in 2005 to become a teacher.

    “He said we couldn’t afford to say no to anyone,” Andrukonis said. Over the next three years, Freddie Mac continued buying riskier loans.

  66. riskviews Says:

    Former Bear Stearns Risk Manager Turns Up at Fed
    November 5, 2008, 7:26 am

    The former chief risk officer at investment bank Bear Stearns , which nearly collapsed in March, is now a senior official of the Federal Reserve division that supervises U.S. banks.

    Michael Alix, who worked at Bear Stearns for 12 years and was its senior risk manager since 2006, was named a senior vice president in the bank supervision group of the Federal Reserve Bank of New York, according to an announcement by the Fed.

    The appointment is apt to raise questions because of the key role Mr. Alix played at Bear Stearns and given the Federal Reserve’s role in Bear Stearns’ sale to JPMorgan Chase & Co. after its breathtaking slide. In his new job at the central bank, Alix will help oversee the financial safety and soundness of banks, which are inspected by Federal Reserve examiners.

  67. riskviews Says:

    Ambac’s Chief Risk Officer Leaves

    By BLOOMBERG NEWS
    Published: February 14, 2008

    The Ambac Financial Group, a bond insurer, said Wednesday that its chief risk officer had resigned.

    The executive, William T. McKinnon, left on Feb. 8, the company said in a regulatory filing.

    Mr. McKinnon was in charge of risk while Ambac expanded beyond insuring municipal debt to guaranteeing collateralized debt obligations and subprime mortgage-related securities.

  68. riskviews Says:

    Texas Mutual Insurance Co. has made changes to its senior management.

    Cecily Gallagher, former senior vice president of underwriting and actuarial services, has assumed her new role as corporate actuary and chief risk officer.

    Insurancenewsnet.com

  69. riskviews Says:

    Regulator to make banks appoint Chief Risk Officer
    The CRO will have veto rights on any decision-making procedure at the bank.

    Eran Peer 7 Sep 09 16:53

    Supervisor of Banks Rony Hizkiyahu is upgrading bank risk management procedures. Sources inform ”Globes” that, beginning in 2010, he will require banks to appoint a chief risk officer (CRO), with the rank of member of management.

    The CRO will have veto rights on any decision-making procedure at the bank.

    The draft directive is based on Basel II – The New Basel Capital Accord of the Basel Committee on Banking Supervision. The directive provides detailed guidelines about the status, functions, and responsibilities of bank’s risk management function and the CRO.

    The Bank of Israel explicitly defines the CRO’s status as a “member of senior management of the bank, and directly answerable to the CEO”. It adds, “The risk management function is independent, and a cornerstone in the creation of a risk management culture.”

    Implementation of the directive is expected to result in restructuring at the banks. Currently, only Bank Hapoalim (TASE: POLI) has a CRO with member of management status. Dan Koller has been the bank’s CRO since January 2008.

    The Bank of Israel stresses the independence of the CRO, and stipulates that he will have the right to freely and directly report his findings to the bank’s board of directors. The CRO will be given sufficient and suitable resources. The salaries of employees in the risk management department will be unrelated to the business results of the activities of their jobs.

    Published by Globes [online], Israel business news – http://www.globes-online.com – on September 7, 2009

    © Copyright of Globes Publisher Itonut (1983) Ltd. 2009

  70. riskviews Says:

    HSBC on track to lend 15 bln stg to UK homeowners
    Fri Sep 11, 2009 9:22am EDT
    http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLB31635520090911

    Reuters

    Brian Robertson, HSBC’s chief risk officer, said returns across the industry will reduce and bank models will shift as lenders face pressure to hold more capital at local subsidiaries as well as group level.

    “The regulator in Mexico wants us to have more capital in Mexico, even though we are capitalised at 10, 11 or 12 percent in Mexico,” Robertson said.

    “They think we should possibly have more capital … and that’s the view of the regulatory community around the world, they each wish to protect their own banking system,” he added.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: