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Chief Risk Officer Enforcement and Accountability Act
3/8/2024, 4:45 AM
Summary of Bill HR 4062
The bill outlines the responsibilities of the Chief Risk Officer, which include identifying and assessing risks within the agency, developing risk management strategies, and reporting on risk management activities to agency leadership and Congress. The Chief Risk Officer would also be responsible for ensuring that agency programs and operations comply with relevant laws and regulations.
Additionally, the bill includes provisions for the enforcement of risk management policies and procedures, including the establishment of penalties for agencies that fail to comply with risk management requirements. The bill also requires agencies to conduct regular risk assessments and report on their risk management activities to Congress. Overall, the Chief Risk Officer Enforcement and Accountability Act aims to improve risk management and accountability within federal agencies by establishing a dedicated position to oversee these efforts. The bill is currently being debated in Congress and may undergo further revisions before being voted on.
Congressional Summary of HR 4062
Chief Risk Officer Enforcement and Accountability Act
This bill provides statutory authority for requiring large bank holding companies to appoint a chief risk officer and expands which companies must establish a risk committee and appoint a chief risk officer. Currently, only large bank holding companies that are public companies are required to establish risk committees and, by regulation, have chief risk officers. Under the bill, risk committees and chief risk officers are also required for (1) privately-held large bank holding companies, and (2) large banks that do not have a holding company.
Further, the Federal Reserve Board is allowed to require smaller bank holding companies to establish a risk committee and appoint a chief risk officer. Currently, the board is allowed to require smaller bank companies that are public companies establish risk committees.
Chief risk officers are responsible for the establishment of risk limits, monitoring compliance, and reporting any deficiencies to the risk committee.
