User:Meron.birhane/sandbox

Industry Backgrounds
On August 1993, James Lam became the first worldwide CRO at GE Capital. He is called the inventor of the ERM model. As a CRO, Lam's responsibilities were to mitigate the risks of the company. He managed the credit risks, market risk, risk transfer and hedge risk. In 1995, a few company executives started to hire CROs in their organizations. But the demand was still low in the CRO position. In 2002, the US government released a new law which influenced the CRO industry significantly. The Sarbanes Oxley Act which gets popular with 2004 says that directors or executive are more severe against counterfeit of financial corporate information. By hiring CROs, companies have started to protect the executives more. Ten years later, 2005, almost all big companies that were making sales over a billion dollar hired a CRO in their enterprise. These companies were almost in a difficult environment and that's why they began to recognize the importance of a CRO. Another boost for the CRO role was the financial crisis in 2008. Many companies became bankruptcy and many jobs were destroyed. After these events, more and more CROs were hired. With the increase in regulation in the economy, the position of the CRO is gaining more importance. The worldwide globalization is also increasing the importance of CROs. Today, there are more than 1000 CROs worldwide. Most of them come from the financial service, energy or commodity industry. In the future, the importance of the CRO will be measured by the complexity of the compliance risk.