What and why a CRO?

Arnout van der Veer

Chief Risk Officer
Old versus new

Risk Management in a new world

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Introduction to ..........

• Information Solutions for Professionals

– Reed Elsevier is a world leading provider of professional information and online
workflow solutions in the Science, Medical, Legal, Risk Information and
Analytics, and Business sectors Ö www.reedelsevier.com
– Based in over 200 locations worldwide, we create authoritative content
delivered through market leading brands, enabling our customers to find the
essential data, analysis and commentary to support their decisions.
– Our content and solutions are increasingly embedded in the workflows of our
customers making them more effective and Reed Elsevier a more valued
partner.

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Now Well Established Internet Brands

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Changes in the Rules of the Game and Writing Out of
the Future

1665: Birth
of the
journal
(article)

2011: End of
scientific
communicatio
n as we know
it

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Our Risk Environment:
from Stable to Dynamic

• Dynamic or Dramatic??
Content is trying to be free through user participation, scalable technology services and
search. The competition has changed…possibilities are endless
– thousands of companies
– millions of users
– lightweight business models

Other new risks in the online world:

– Product liability risks
– Technology risks
– Change management

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So has Anything Changed?

• Are we here by luck or judgment?

• What will we do next time?

´ Risks are bigger than we thought

´ Risks are not where we thought
´ Risks are often hidden deep
´ Risks are linked to people’s behaviour

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Dealing with an increased risk profile

• Un unchartered course into new territory

• Traditional mechanism’s don’t work anymore

• Everything is a potential danger

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Key Lessons

• Put emphasis on the risks arising from change inside and outside the
organisation
• Enhanced risk governance with the creation of a CRO
• Changed decision making

• Focus
– risk management is more about people behaviour than processes
– poor culture and environment as the biggest risk
– Agility
– Continuous scanning

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The CRO role

• To provide high quality expertise and sound advice as the professional lead for risk
and compliance services to the businesses;
• Ensure that mechanisms and processes are embedded that facilitate the
production, review and meaningful debate of high quality risk information to support
business decision making, including supporting the delivery of major projects in a
flexible and pragmatic way;
• Promote and develop risk and compliance as a professional service that goes
beyond providing information for assurance and adds value through delivering,
where possible, both tangible and intangible benefits to the business
• Liaison role between the businesses and executive management (incl Board) on
risk and control matters
• Assurance on the management of key risks

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The CRO role - requirements

• Expert knowledge of best practice risk and compliance management, theory of risk and
compliance models, control frameworks, and the legal/regulatory and corporate governance
requirements of FTSE 100/SEC listed companies;
• Extensive experience of designing and developing risk and compliance processes and
business control frameworks and a track record of both successfully implementing and
quality assuring these across multiple areas and stakeholders in the business;
• Solid financial and commercial understanding of how risk management and corporate risk
appetite can impact shareholder value;
• Proven experience in operating, communicating effectively, and influencing at an executive
and senior management level and with a wide spectrum of stakeholders;
• Managerial and staff supervision skills;
• Excellent presentation skills;

• Strong Planning skills.

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