17 Chief Risk Officer Interview Questions and Answers

As a chief risk officer (CRO), you are responsible for assessing and mitigating risks to your company. This may include financial risks, such as credit risk and interest-rate risk, as well as operational risks, such as the risk of a data breach.

The role of a CRO is becoming increasingly important in the business world, as companies are becoming more aware of the risks they face and are looking for professionals to help them manage them. If you want to be a CRO, you’ll need to be able to answer common CRO interview questions.

In this guide, you’ll find interview questions and answers that will help you prepare for your next CRO interview.

Are you familiar with the risk management process?

The interviewer may ask this question to assess your knowledge of the risk management process and how you apply it in your work. Use your answer to highlight your experience with the process and explain any steps you’ve completed in a previous role.

Example: “I am familiar with the risk management process, as I have used it in my last two positions. In my current position, I use the entire process every quarter when I complete a risk assessment for the company’s board of directors. I also use the process when I create quarterly reports that outline our risks and mitigation strategies. The process is important because it helps me identify all possible threats to the organization so we can develop plans to reduce those risks.”

What are some of the most important skills for a chief risk officer to have?

This question can help the interviewer determine if you have the skills necessary to succeed in this role. Use your answer to highlight some of the most important skills and how you developed them over time.

Example: “The two most important skills for a chief risk officer are communication and problem-solving. As a chief risk officer, I need to be able to communicate effectively with my team members and other stakeholders about any risks we’re facing or have faced in the past. This is because it’s essential that everyone understands the risks they face so they can take steps to mitigate those risks. In addition, being able to solve problems quickly and efficiently is another key skill for a chief risk officer. This is because there will always be challenges that arise during the course of business, and it’s up to me to find solutions.”

How would you go about identifying and assessing risks to the company’s assets, reputation or other interests?

The interviewer may ask you this question to assess your risk management process. Your answer should include a step-by-step explanation of how you would go about identifying and assessing risks in the company.

Example: “I would first start by analyzing the current state of the organization’s risk profile, including its existing controls and processes for managing risks. I would then identify any gaps or weaknesses that could lead to financial losses, reputational damage or other negative outcomes. After that, I would develop a plan to mitigate these risks by implementing new policies, procedures or controls where necessary.”

What is your experience with developing and implementing risk management strategies?

The interviewer may ask you this question to learn about your experience with risk management and how it relates to the position. Use examples from past positions to explain what strategies you used to manage risks, how you implemented them and the results of your actions.

Example: “In my last role as chief risk officer for a financial institution, I developed several strategies to help mitigate our company’s risk. One strategy was to implement a comprehensive risk assessment program that would allow us to evaluate all aspects of our business operations. This allowed me to identify areas where we could improve our processes or reduce our exposure to certain risks. Another strategy I used was to create an internal audit team to monitor our compliance with regulations and industry standards.”

Provide an example of a time when you had to make a difficult decision regarding risk management.

The interviewer may ask this question to learn more about your decision-making process and how you handle challenging situations. When answering, it can be helpful to describe the steps you took to make a well-informed choice and highlight any positive outcomes that resulted from your decision.

Example: “In my last role as chief risk officer for a large corporation, I had to decide whether or not to invest in a new technology that would help us streamline our customer service department. The technology was expensive, but if we invested in it, we could save money on hiring additional employees and training them. Ultimately, I decided to move forward with the investment because of the long-term benefits it would provide our company.”

If we were to conduct a thorough risk assessment of our company, what risks would you identify?

This question is an opportunity to show your expertise in risk management. It also allows you to demonstrate how you would use that knowledge to improve the company’s processes and procedures. In your answer, explain what risks you would identify and why they are important to assess.

Example: “I would first look at our current financial situation and determine if there are any areas of weakness or vulnerability. I would then examine our business operations and evaluate whether we have adequate controls in place to mitigate those risks. Finally, I would review our IT systems and network security to ensure that we’re protecting ourselves from cyber threats.”

What would you do if you identified a significant risk but your management team was reluctant to take action?

This question can help interviewers assess your ability to influence others and convince them of the importance of a risk. Use examples from past experiences where you had to convince management or executives to take action on a risk that was important but they were hesitant to do so.

Example: “In my last role, I noticed an increase in fraudulent activity within our customer service department. The company’s leadership team didn’t want to implement additional security measures because it would cost too much money. However, I explained how this could lead to more losses if we didn’t address the issue sooner rather than later. Eventually, the leadership team agreed with me and implemented new security measures to reduce fraud.”

How well do you understand our industry?

The interviewer may ask this question to assess your knowledge of the industry and how it relates to risk management. Use examples from your experience that show you understand the challenges, opportunities and risks involved in the industry.

Example: “I have worked in the financial services industry for over 10 years, so I am very familiar with the unique challenges and regulations associated with it. For example, I know that banks are required to keep a certain amount of cash on hand at all times, which means they’re more vulnerable to robbery than other industries. In my previous role as chief risk officer, I helped develop security protocols to protect our employees and assets while also complying with federal regulations.”

Do you have experience working in our geographic region?

Employers may ask this question to make sure you’re willing to relocate for the job. If they haven’t specified where their company is located, do some research on your own and mention any similarities between that area and your current location.

Example: “I’m originally from New York City, so I have experience working in a large metropolitan area. However, I’ve lived in my current city for five years now, so I am ready to move if necessary. I would be happy to visit your city before accepting the position to see if it’s a good fit.”

When is it appropriate to involve outside parties (e.g. consultants, auditors, insurance providers, etc.) in risk management?

Interviewers may ask this question to assess your ability to collaborate with others and determine when it’s appropriate to do so. In your answer, explain how you decide whether or not to involve outside parties in risk management processes.

Example: “I typically only involve outside parties in the risk management process if I feel that my organization can’t handle a particular risk on its own. For example, if we’re facing an issue that requires specialized knowledge, then I would consider bringing in an outside party to help us manage the situation. However, I always make sure to choose outside parties carefully because they can be expensive. I want to ensure that any outside parties we hire are qualified for the job.”

We want to improve our risk management process. What are some of the best practices you’ve seen elsewhere?

This question is a great way to show your knowledge of the industry and how you can improve an organization’s risk management process. When answering this question, it can be helpful to mention specific processes that you have implemented in previous roles or discuss what you would do if given the opportunity to implement new practices at your next job.

Example: “I think one of the best ways to improve a company’s risk management process is by implementing a formalized risk assessment program. This allows for all employees to understand their role in identifying risks within the organization and provides a framework for assessing those risks. I also believe that having a dedicated risk committee is important because it gives senior leadership the ability to oversee the entire risk management process.”

Describe your process for delegating tasks and ensuring that everyone involved in risk management is doing their part.

The interviewer may ask you this question to learn more about your leadership style and how you manage a team. Use examples from past experiences to describe the steps you take when delegating tasks, ensuring that everyone is doing their part and communicating with your team members.

Example: “I start by identifying which risks are most important to address first. Then I meet with each member of my team to discuss what they’re working on and whether there’s anything else we need to do to ensure our company is prepared for those risks. For example, if one risk involves cyber security, I’ll make sure all team members know what their responsibilities are in terms of monitoring systems and reporting any issues.”

What makes you stand out from other candidates for this role?

Employers ask this question to learn more about your qualifications and how you can contribute to their company. Before your interview, make a list of three things that make you the best candidate for this role. These could be specific skills or experiences that relate to the job description.

Example: “I am highly organized, which is an important skill for a chief risk officer. I also have experience managing a team of analysts, so I know what it takes to lead a group of professionals. Finally, I understand the importance of balancing security with profitability. In my last position, I helped implement new strategies that reduced our risk while increasing revenue.”

Which risk management models are you most familiar with?

The interviewer may ask this question to determine your experience with different risk management models. Use your answer to highlight the models you’re most familiar with and explain why they are effective.

Example: “I’m most familiar with the ISO 31000, COSO ERM and IT GRC frameworks. I find these three models particularly useful because they help organizations understand their risks and implement strategies for mitigating them. For example, when I worked at my previous company, we used the ISO 31000 framework to identify our organization’s risks and develop a plan to mitigate them. We then implemented the COSO ERM model to evaluate how well we were implementing our mitigation strategies. Finally, we used the IT GRC framework to ensure that our information technology systems were secure.”

What do you think is the most important aspect of risk management?

This question can help the interviewer determine your priorities and how you would approach a risk management role. Your answer should show that you understand what’s most important in this position, but it can also give insight into your own values and goals.

Example: “I think the most important aspect of risk management is communication. It’s essential to keep everyone involved with the company informed about risks so they know how to respond appropriately. I’ve seen situations where companies didn’t communicate well about their risks, which led to confusion among employees and even more problems. I believe that if we’re all on the same page, we can work together to mitigate any issues before they become serious.”

How often should you conduct risk assessments?

The interviewer may ask you this question to assess your risk assessment process and how often you conduct them. Your answer should include the frequency of conducting assessments, as well as the steps involved in completing one.

Example: “I typically conduct a risk assessment every six months or so. I start by reviewing our current policies and procedures for managing risks and then compare them with industry standards. Next, I evaluate each department’s performance against its goals and objectives. Finally, I meet with senior management to discuss my findings and make recommendations for improvement.”

There is a risk that could seriously damage the company, but management doesn’t seem concerned. What do you do?

This question can help the interviewer determine how you would handle a situation that could negatively impact your company. In your answer, explain what steps you would take to ensure management is aware of the risk and takes action to mitigate it.

Example: “In my previous role as chief risk officer, I was responsible for identifying risks that could have serious consequences on the organization. One time, I noticed there were several areas where we had gaps in our security protocols. I met with senior management to discuss these issues and recommend changes to improve our security measures. They agreed to implement some of my suggestions but not others.

I continued to monitor the situation and found that the security gaps were still present. I then scheduled another meeting with senior management to discuss the issue again. This time, they listened to my concerns and implemented all of my recommendations.”