H.R. 1910 — Chief Risk Officer Enforcement and Accountability Act

This section revises risk-management governance standards under Section 165(h) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (i.e., enhanced prudential standards for bank holding companies and nonbank financial companies supervised by the Federal Reserve with total consolidated assets of $250 billion or more, designed to mitigate systemic risk). Specifically, it (1) eliminates the requirement that such companies be publicly traded to establish a board risk committee and appoint a chief risk officer; (2) requires each such company to appoint a chief risk officer with experience managing risks at large, complex financial firms, who is responsible for enterprise-wide risk limits and monitoring, risk-management infrastructure and compliance (including for global operations), processes to identify and address emerging risks and deficiencies, integration of risk controls with compensation, and risk-control testing, with direct reporting to the board risk committee and CEO; (3) establishes chief risk officer vacancy procedures, including regulator notification within 24 hours, a hiring plan within 7 days, public website notice if unfilled after 60 days, and a prohibition on asset growth beyond the vacancy-date level until filled; (4) directs primary financial regulators to require banks without a bank holding company and with total consolidated assets of $50 billion or more to establish a board risk committee and appoint a chief risk officer; and (5) designates the Federal Reserve as the primary financial regulatory agency for supervised nonbank financial companies under these provisions.