CFO Gandhi to Create New Position: Chief Risk Officer
In the wake of the 122-page Wilmer Hale report released today that examines the Office of Tax and Revenue embezzlement scandal, D.C. Chief Financial Officer Natwar M. Gandhi said he will adopt one of the key recommendations and create a new position on his staff for a "chief risk officer."
"I have directed that work begin immediately to create that position," Gandhi said in a statement.
So what does a risk officer do? This is how Wilmer Hale describes it in the report:
The OCFO should appoint a Chief Risk Officer with responsibility for assessing and mitigating strategic, reputational, operational, financial, information technology, and security risk. The officer should be accountable to the CFO and make regular reports to the Audit Committee and the IOC. He or she would be responsible for conducting regular risk assessments of the various OCFO agencies, providing input on the internal audit plans based on those assessments, and ensuring audit recommendations are implemented.
A Chief Risk Officer is needed because the OCFO's current risk assessment and control design functions are divided among the Controller, the Director of OIO, and the heads of the various OCFO divisions. As discussed in Section V.C.1.(e), the District's Office of Risk Management plays no role in monitoring risk for the OCFO. There is no single person in the OCFO whose sole responsibility is assessing risk across the organization and ensuring that the proper controls are in place. The Chief Risk Officer should be involved in assessing the risk of new or updated technology and ensuring that controls are adequate to prevent fraud and ensure that data are secure.
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