Certified Internal Auditor (CIA) Practice Test

The effectiveness of the chief risk officer (CRO) is significantly enhanced when monitoring risk within the enterprise risk management team. This role is integral to identifying, assessing, and mitigating risks that could impact the organization’s objectives.

By being a part of the enterprise risk management team, the CRO ensures that risk management processes are systematic and aligned with the overall business strategy. This collaborative framework allows for comprehensive monitoring and the integration of risk considerations into decision-making processes across the organization. Additionally, having a centralized approach to monitoring risks enables the CRO to gain a holistic view of the risk landscape, identify emerging risks, and respond proactively.

While managing risk as part of senior management, sharing responsibilities with line management, or collaborating with the chief audit executive are important aspects of the CRO's duties, the central focus of effective risk management is heavily reliant on active participation in monitoring activities. This proactive engagement with the enterprise risk management team underscores the role of the CRO in ensuring that risk management is not only reactive but also anticipatory in nature.