2019 Risk Organizations Survey

1. Participant demographics -

• The business characteristics of our thirty-one participant companies, in special groups used to draw additional insights from survey results

2. How have companies designed their risk function? -

• Risk function purview over businesses and transaction types; Positioning the risk function in the Corp; Complexity of the risk function

3. How do companies ensure governance over risk? -

• Duties of the risk function; Internal and regulatory compliance; Independence of the risk function; The internal risk management committee;

4. How do companies manage credit risk? -

• Credit function operations; Organization, staff, reporting; Internal policies related to credit; Limits, mitigation instruments; Credit systems 

5. How do companies ensure robust risk analysis? -

• Market and credit risk limits; Validating forward curves, back-testing; Scenario analyses, stress-testing; at-risk metrics; Risk-capital based metrics

6. How do companies staff with & design compensation for risk professionals? -

• Staff size; Base & bonus; Risk compensation design versus other functions; Organizational levels

7. Risk Systems -

• System types for various stages of the transaction lifecycle; Use of a data warehouse; Settlement systems; Trade entry and confirm systems; Market & credit risk systems

• Our survey is sharply focused on energy risk management, particularly, energy commodity organizations. This “energy industry only” focus allows much more relevant conclusions than possible with typical best practice recommendations that aggregate energy, with financial services and other industries.

• The survey content was developed by Chief Risk Officers and other risk management professionals in the CCRO membership. This “practitioner design” ensures that the issues are those for which our industry most needs information in order to make operations more efficient and risk practices more effective.

• The common practice findings were controlled so that each responding entity is a single aggregate response, so as to limit duplicative answers from varied perspectives within a single organization. Thus avoiding a problem commonly found in broader public surveys.

2018 Events: Survey Results Workshops

The CCRO plans to host several open workshops based on this survey’s results. Workshop participants will have an opportunity to discuss their perspectives and experience regarding each survey topic area while learning about the current state of the industry and CCRO recommended practices.

Our first workshop was held in May, with more planned...

Get Involved with The CCRO Today.  Become a CCRO member and join our discussions of results.  Benchmarking your company against the survey results is an extremely effective way to uncover gaps and to support moving forward with internal practice changes.