Chief Risk Officer Enforcement and Accountability Act

This bill would require big banks to have a senior leader called a Chief Risk Officer. This person’s job is to spot problems early, set safe limits, and make sure the bank follows strong risk rules across all its business, including overseas operations. The Chief Risk Officer must report directly to the CEO and the board’s risk committee, tell them about new risks and weaknesses, and fix problems quickly.

If the Chief Risk Officer leaves, the bank must tell federal and state regulators within 24 hours, share a hiring plan within 7 days, and, if the job is still empty after 60 days, tell the public and stop growing its total assets until the role is filled. The bill also requires large banks that don’t have a bank holding company to create a risk committee and appoint a Chief Risk Officer if they have $50 billion or more in assets, with regulators to issue the rules to make this happen.

Key points:

• Who is affected: Large banks, including those without a bank holding company, with $50 billion or more in assets.
• What changes: Must appoint a qualified Chief Risk Officer; set company-wide risk limits; keep strong risk policies and systems; and have the officer report to the CEO and risk committee.
• Vacancy rules: Notify regulators within 24 hours, submit a hiring plan within 7 days, and if unfilled after 60 days, announce it publicly and pause asset growth until filled.