By Connor Nurse, Head of Broadgate US
For all the recent changes in risk leadership, perhaps no role has undergone a more visible transformation than the Chief Risk Officer.
In the US, where CROs are increasingly expected to engage with growth, governance, and innovation, the scope of the role is widening at pace.
This evolution is forcing firms to reconsider the talent, capability and leadership style required to manage risk in a more complex market.
It’s also impacting the profiles that executive recruitment agencies and risk and compliance staffing specialists are being asked to identify.
Broadgate’s Connor Nurse explores this trend in more detail below.
A Regulatory Environment in Motion
Regulatory pressure isn’t moving in a straight line. The Federal Reserve’s recent changes to its supervisory rating framework for large bank holding companies represent a shift toward closer scrutiny and a more fluid expectations landscape.
At the same time, the value of regulatory fines levied against global financial institutions more than quadrupled in the first half of 2025, increasing by 417 % compared with the same period in 2024.
This mirrors what we’re hearing from senior risk leaders across our network, particularly around operational resilience and model transparency: both are now fundamental to a firm’s ability to adapt quickly and maintain supervisory confidence.
Technology and the Expanding CRO Mandate
As highlighted by Tim Ayala, CRO of Pinnacle Financial Partners, in our recent conversation, US banks are adopting AI at a pace that is transforming not only how risk is monitored but how it is documented, challenged and explained.
The volume of information required to evidence good governance is increasing, yet the technology often moves faster than the frameworks surrounding it.
As a result, CROs are being asked to do far more than steward risk controls. They must also translate complex technical issues into language that boards, regulators, and commercial leaders can act on.
This is especially true in AI model governance, where expectations around transparency, explainability, and ongoing validation are intensifying.
For many organisations, this elevates the importance of hybrid risk leaders (those who blend traditional financial risk expertise with a deep understanding of data science, engineering, and digital transformation).
Today, these skills are essential to maintaining credibility in supervisory discussions and safeguarding the firm against emerging technology-driven vulnerabilities.
Risk Leadership as a Growth Enabler
Another subtle but significant shift is the growing expectation that CROs contribute actively to growth strategy. As banks expand product lines, explore embedded finance opportunities, and invest in digital platforms, boards increasingly look to their CROs for strategic challenge, not only risk mitigation.
Commercial fluency is becoming just as critical as technical capability, with many CROs now expected to anticipate the risk implications of new ventures alongside the development of business strategy.
The Talent Implications for 2025 and Beyond
In a market where expectations are rising on all fronts, competition for senior risk talent is intensifying. Broadgate is seeing consistent demand for leaders who can operate confidently across three distinct dimensions:
- Technical depth – particularly in AI model governance, data quality, operational resilience, and regulatory engagement.
- Cross-functional influence – the ability to partner with technology, product, finance, and audit teams while maintaining independence.
- Strategic adaptability – a forward-looking mindset capable of navigating fluid regulatory expectations and fast-moving innovation.
This blend of capabilities is still relatively rare, especially as many firms are evolving their internal risk culture faster than their talent pipeline can support.
Looking Ahead
The CRO role will continue to expand as the US financial sector adapts to heightened supervisory expectations, new technology, and shifting commercial priorities. What’s clear is that risk leadership is no longer confined to oversight – it’s a central driver of organisational performance and resilience.
For firms, this means investing early in the next generation of risk leaders. For candidates, it means developing a broader skillset that balances rigorous technical expertise with strategic vision and stakeholder influence.
As the market evolves, Broadgate Search will continue to work closely with clients and candidates to understand these shifts and match organisations with leaders equipped to succeed in a more complex, opportunity-rich environment.
If you’re considering strengthening your executive leadership team ahead of the new year, Broadgate would be happy to support you.
We’re speaking with senior risk leaders every day and can share real-time insight into hiring trends, emerging skillsets, and the evolving CRO landscape.
To discuss what we’re seeing in the market, or to explore how we can help you identify the right leadership talent for your firm, contact Connor Nurse directly at connor.nurse@broadgatesearch.com.