# Risk Manager

*Careers & Credentials — Finicade finance glossary*

A risk manager measures, limits and reports the risks a firm takes, independently of the people taking them. The job's difficulty is organisational rather than technical: the second line must be able to challenge revenue producers who are better paid and better connected. A risk function's real authority is visible in whether limits have ever actually stopped a trade.

**Also known as:** chief risk officer, CRO, risk management role

**Related terms:** [FRM](https://finicade.com/glossary/frm), [Value at Risk (VaR)](https://finicade.com/glossary/value-at-risk), [Three Lines of Defense](https://finicade.com/glossary/three-lines-of-defense), [Risk Appetite](https://finicade.com/glossary/risk-appetite), [Stress Testing](https://finicade.com/glossary/stress-testing)

Source: https://finicade.com/glossary/risk-manager