CROs seen as vital for restoring confidence

Chief risk officers (CROs) have a vital role in helping shape the future of thetroubled energy sector and should report directly to their company’s boardif investor confidence is to be rebuilt in the industry. Vincent Kaminski, seniorvice-president of commercial analytics at US energy firm Reliant, gave this viewin his speech to delegates at EPRM’s congress in Houston in May.

Instead of reporting to a chief executive or chief financial officer, who mayhave “large egos”, said Kaminski, energy company CROs should reportto the board of directors, providing an “independent and reliable sourceof company information”.

Energy companies should also seriously reconsider their compensation schemes,to rid the industry of potential rogue traders, Kaminski added.

One possibility would be to institute a long resting period for exercised optionsand to defer compensation