Chief Risk Officer Enforcement and Accountability Act

HR 4062, the Chief Risk Officer Enforcement and Accountability Act, requires large financial institutions (those with $50 billion or more in assets) to appoint a chief risk officer with specific risk management expertise. The bill mandates this officer to oversee enterprise-wide risk limits, implement risk-management systems, and report directly to both the company’s risk committee and CEO. It also requires companies to notify regulators within 24 hours of a vacancy, submit a hiring plan within 7 days, and publicly disclose if a vacancy persists beyond 60 days - during which time the company cannot grow its asset size. The law applies to both bank holding companies and large standalone banks without parent companies.