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Risk officers come in from the cold

The function wins few friends at investment banks, but is gaining in influence

No one becomes the chief risk officer of an investment bank and expects to win a popularity contest. In bull and bear markets, the odds are on losing friends rather than gaining them.

However, looking back at the financial crisis of 2008-2009, those banks that had influential CROs, who in turn had the ear of the chief executive and the board, emerged as rare pillars of strength in the investment banking industry.

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