By Staff Reporter

The Federal Deposit Insurance Corporation (FDIC) has approved the formation of an Office of Corporate Risk Management to assess external and internal risks to the agency.

The office will report directly to the FDIC Board and will be managed by Stephen Quick, who was appointed as the FDIC's first chief risk officer last July.

Acting FDIC chairman Martin Gruenberg said the FDIC had confronted a variety of complex new challenges associated with the financial crisis, changing landscape of the banking industry, and significant regulatory changes enacted into law.

He continued: "Managing the risks that may arise from these challenges is a significant and continually evolving priority for the agency. By creating a central risk office, the FDIC is adopting a current best practice in the financial industry, and will build upon its existing commitment to careful risk management within the Corporation. This change will enhance the Agency's existing practices, while incorporating key lessons from both the public and private sector into the FDIC's approach to risk management."

When fully staffed, the OCRM will have a core of 15 employees and will work with internal committees and risk-specific working groups. Front-line offices and divisions will continue to be responsible for risk management.

The new Office will play an advisory and supporting role and will identify risks that require consideration by senior management and the Board.

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