The European Commission is strengthening its financial risk management to keep up with the Unions growing financial operations. The role of the Chief Risk Officer is being expanded to better oversee lending, debt management, and budgetary guarantees. This position, held by Iliyana Tsanova since 2021, is crucial for the efficient use of public resources.
The Union increasingly uses financial instruments to stimulate investments and support economic recovery, particularly in member states and neighboring countries like Ukraine. The enhancement of risk management aligns with President von der Leyens mission.
The Chief Risk Officer function is a key pillar in the three lines of defense model, a best practice for risk management. In this model, the first line manages EU loans and assets, the second line provides independent oversight, and the third line, the Internal Audit Service, ensures independent risk assessment.
With the implementation of this model, the Commission has fully complied with the recommendations of the European Court of Auditors.
Background
The EU uses various financial instruments for its policy, such as the issuance of EU bonds and budgetary guarantees. The NextGenerationEU program is a significant initiative funded by EU bonds. These instruments promote investments in strategic sectors such as infrastructure and innovation.
For More Information
Link to the Commission Decision