What are the Minimum Criteria for Appointing a Chief Risk Management Officer (CRO)?
The Chief Risk Officer (CRO) is the head of Risk Management Department of a bank. Bank should consider the following criteria as a minimum for appointing a Chief Risk Management Officer (CRO):
(1) Educational Background
Although Bangladesh Bank’s core guideline focuses more on experience and seniority, banks usually require: MBA / MBM / Master’s in Finance, Economics, Banking, Accounting, or Business and Professional certifications such as: CA, CMA (Certified Management Accountant), CFA (Chartered Financial Analyst), FRM (Financial Risk Management).
(2) Banking knowledge
The CRO should have the following banking knowledge:
- Core risk management
- Internal Control and Compliance
- Capital management
- Branch banking
- Core banking system
- Risk-based certification
(3) Working Experience
The incumbent CRO should have a minimum of three years of hands-on working experience in risk management.
(4) Senior Banking Executive
The CRO must be a senior banking executive. Bangladesh Bank requires banks to appoint the CRO from at least AMD/DMD (Additional Managing Director / Deputy Managing Director) level in many cases for independent authority and effectiveness.
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