Weekend Economists Toast the Apostle of Ireland March 14-16, 2014

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31. Banking's back room risk cops step into top jobs

http://uk.reuters.com/article/2014/03/16/uk-banks-executives-risks-idUKBREA2F05720140316


(Reuters) - Once modest of pay and profile, risk experts are being reborn as rock stars of the banking world - their status and salaries soaring as regulators force financial institutions to clean up.

Industry-wide investigations into alleged exchange rate manipulation, trading scandals at UBS, Societe Generale and JPMorgan and HSBC's $1.9 billion (1.1 billion pounds) fine for lax money-laundering rules have upped the ante for banks already under pressure to curb reckless behaviour that led to the financial crisis.

Now watchdogs and central banks want to see a clear line of responsibility for the avoidance of such fiascos in the future, and as a result, the position of chief risk officer (CRO) has jumped up the ranks. Many CROs now sit alongside the finance director as second in importance behind the chief executive.

"The role of the CRO has become broader, higher profile and more influential," said Anne Murphy, head of UK financial services for executive recruitment firm Odgers Berndtson.