As financial services become more interconnected and technology-driven, the role and impact of the chief risk officer (CRO) is evolving dramatically.
“The speed of change is what stands out the most,” Regina Lewie, SVP and CRO at Corporate One Federal Credit Union, told PYMNTS.
“Risk leaders have to quickly identify and manage risks in an environment that’s more complex than ever. There are so many new players in financial services, new payment channels, and the speed of information — it can be both good and bad. A single event can ripple through the markets, requiring us to react, even if it doesn’t directly affect us,” Lewie said, noting that the digitization of business processes and money movement has redefined risk management at every level.
This backdrop, coupled with an increasingly interconnected financial ecosystem, has required CROs to rethink traditional approaches.
“Traditionally, risk management focused on prevention,” Louie said. “But now it’s just as critical to think about how you respond to incidents. Does everyone know their role in a crisis? How do you communicate, and to whom? Your response impacts both operational and reputational risks.”
With risks multiplying across cybersecurity, compliance and even artificial intelligence (AI), CROs are no longer just the doomsayers of corporate risk; they’re the architects of resilience, tasked with balancing innovation with survival.
Cybersecurity is the new black in the CRO playbook. Data breaches are skyrocketing, with ransomware attacks costing businesses billions annually. CROs are now expected to lead the charge on cyber defense, partnering with CIOs and CISOs to outsmart increasingly sophisticated threats.
Lewie cited the CrowdStrike cyber incident as an example. Although Corporate One was not directly impacted, the event spurred a flurry of internal questions and vendor-related service disruptions. “Even without direct involvement, we had to react quickly to protect our members and maintain trust,” she said.
And third-party risk management is a growing focus. “These programs are so intertwined now. You can’t talk about risk management without addressing third-party risk and business resiliency. It’s no longer a ‘check-the-box’ exercise,” Lewie said. “Your vendors’ programs must meet or exceed your risk requirements — you don’t lower your standards to theirs.”
The proliferation of governance, risk and compliance (GRC) tools has revolutionized risk management. These platforms streamline workflows, standardize risk assessments, and enable real-time monitoring. “The tools today provide an unprecedented level of data and insights,” Lewie said. However, she warned of information overload. “It’s easy to get bogged down in the volume of data. The challenge is to focus on what truly matters for your organization.”
The CRO’s transformation isn’t just about tackling external threats. These risk maestros are now core strategists, working alongside CEOs and CFOs to assess risks in real-time. Want to expand to a new market? The CRO maps out geopolitical risks. Rolling out a new product? They’ll flag supply chain vulnerabilities.
“Our job is to challenge stakeholders to think critically about new investments and initiatives,” Lewie said. “It’s not about saying no; it’s about ensuring that risks are within tolerance and aligned with the organization’s goals.”
As the scope of risk management expands, so does the skill set required of CROs. Lewie highlighted the need for broad business acumen and the ability to synthesize diverse data points into actionable insights. “Today’s CRO must understand strategic, operational, compliance and reputational risks — and be able to connect the dots between them.”
Artificial intelligence (AI) is another emerging frontier. While Lewie views AI as promising, she advised caution. “Teams are already experimenting with AI for risk analysis, but it’s essential to validate the outputs. AI is a tool, not a decision-maker.”
Immediate payment technologies have also heightened the stakes. “Transactions now settle in seconds. Our processes, resiliency plans, and vendors must align to meet those expectations,” Lewie said.
And while the digital age has undeniably reshaped the CRO role, some constants remain. “At the end of the day, it’s still about safety and soundness,” Lewie concluded. “Our ultimate goal is to protect the organization and its stakeholders from harm — no matter what challenges the future may bring.”
The post Chief Risk Officers Suit Up for Digital Duty appeared first on PYMNTS.com.
