Chief Risk Officer Job Description Template

The chief risk officer owns the firm’s risk framework and reports independently of the investment team. The remit runs well past market risk to cover liquidity, counterparty, operational and model risk, and it carries real authority to constrain what the fund does. Institutional investors examine this function closely during due diligence, so the role is both a genuine control and a commercial asset.

Typical Duties and Responsibilities

• Own the firm wide risk framework, limits and escalation policy
• Report risk independently to the board, the investment committee and investors
• Set and enforce limits on exposure, leverage, concentration and liquidity
• Oversee market, credit, counterparty, operational and model risk
• Approve new strategies, instruments and markets from a risk perspective
• Lead stress testing and scenario planning across the firm
• Manage the risk team and the risk technology stack
• Represent the risk function in investor due diligence
• Coordinate with compliance on regulatory risk reporting obligations
• Investigate risk events and drive changes that prevent recurrence

Education

• Bachelor’s degree in a quantitative discipline or finance

Required Skills and Experience

• 10+ years of risk management experience including a senior leadership role
• Authority and credibility with portfolio managers and founders
• Deep understanding of derivatives, leverage, financing and margin
• Experience building a risk framework rather than only operating one
• Track record of representing risk in institutional due diligence
• Command of both quantitative risk measures and their limitations
• Ability to say no and make it stick
• Strong written reporting to boards and investors

Preferred Qualifications

• FRM, CFA or an advanced quantitative degree
• Prior chief risk officer experience at a fund