U.S. Treasury Seeks Chief Risk Officer as Part of Strategic Plan
By Ian Katz
The U.S. Treasury Department wants to hire someone to help manage risks and protect against losses on federal programs, according to an internal memo. The Treasury intends to create the job of chief risk officer to oversee a small team and “provide permanent financial risk-management expertise,” according to the memo from Undersecretary for Domestic Finance Mary Miller to staff in her division in Washington. Miller refers to the memo, dated Sept. 16 and obtained by Bloomberg News, as a “strategic plan.” Treasury spokesman Anthony Coley declined to comment. “It’s a credit risk to Treasury when there are losses on these insurance and guarantee programs, and then Treasury has to foot the bill,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics Inc., a Washington regulatory research firm whose clients include the world’s largest banks. “Getting a handle on all those guarantee and credit risks is a good idea.”