- Reputability LLP
- Reputability LLP are thought leaders in the field of reputational risk and its root causes, behavioural risk and organisational risk. Our book 'Rethinking Reputational Risk' received excellent reviews: see www.rethinkingreputationalrisk.com. Anthony Fitzsimmons, one of its authors, is an authority and accomplished speaker on reputational risks and their drivers. Reputability helps business leaders to find these widespread but hidden risks that regularly cause reputational disasters. We also teach leaders and risk teams about these risks. Here are our thoughts, and the thoughts of our guest bloggers, on some recent stories which have captured our attention. We are always interested to know what you think too.
Wednesday, 3 April 2013
Nathan Bostock, RBS' talented Chief Risk Officer, finally decided to stay with RBS. His reward is to become its Chief Financial Officer.
Is it a good idea for a CRO to become a CFO or Chief Executive at the same company? Apart from knowing where all the bodies are buried, they should also know everything about how risk is monitored and (hopefully) kept under control. They probably know more than anyone else about the system's weaknesses. And they have been the boss of everyone in the risk control system except, if an outsider, their successor.
That kind of mix is filled with potentially lethal behavioural and organisational risks - though of course the loss of such a knowledgeable and experienced individual would be a serious blow to RBS.
So to the question: as RBS' CRO, should Nathan Bostock block his own promotion to CFO? A tricky one.
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