Risk Talent · Fractional and part-time

Fractional CROs: part-time chief risk officers for regulated financial firms

A fractional chief risk officer is a senior risk executive who holds the chief risk officer role for a firm on a part-time, continuing basis, typically one to three days a week, rather than full time or for a fixed interim period.

RiskTAE places fractional CROs and fractional heads of risk with banks, lenders, insurers, investment firms, payment firms and fintechs in the UK and worldwide: people who have held the role full time, vetted by former CROs, and matched to the size and stage of the firm.

You get a chief risk officer the board can rely on, at the days a week the business needs, with the regulatory approvals handled properly.

By Benn PopleUpdated

Brief us on your risk role Or book a 30-minute callNeed full-time interim cover instead?
1 to 3 daysA typical fractional arrangement
SMF4Approval follows the function, not the hours
Vetted by former CROsEvery candidate

Definition

What is a fractional chief risk officer, and how does it differ from an interim?

An interim chief risk officer covers the role full time for a defined period, usually while the firm searches for a permanent appointment. A fractional chief risk officer holds the role on a continuing basis for part of the week, because the firm needs a CRO of that calibre but not five days of one.

Our guide to interim or fractional chief risk officers compares both with a permanent appointment through chief risk officer search, including SMF4 approval and the 12-week rule.

When it fits

When does a fractional CRO make sense, and when does it not?

It makes sense when the firm’s risk decisions need a chief risk officer’s judgement a few times a week, the second line below the CRO is competent, and the board wants a named senior person it can hold to account. A fractional CRO can chair the risk committee’s preparation, own the ICAAP, ILAAP or ICARA, challenge the business plan and sit with the board.

It does not make sense when the firm is in remediation, mid-authorisation with a supervisor asking weekly questions, or running a change programme that needs a CRO in the room every day. In those cases an interim is the honest answer, and we will say so at the first call.

The PRA’s Risk Control Part is the test for a bank: the head of the risk management function must be an independent senior manager who can report directly to the board and warn it. A fractional CRO who cannot be reached when the board needs that warning is not meeting the rule, whatever the contract says, so we agree availability and escalation in writing before anyone starts.

Source: PRA Rulebook, Risk Control Part, 3.4 and 3.5.

Regulatory approval

Does a fractional CRO need SMF4 approval?

At a PRA-regulated bank or building society, the Chief Risk function, SMF4, is a senior management function, and approval attaches to the function the person performs, not to the hours they work. A fractional chief risk officer who performs that function needs the PRA’s approval before taking it up, in the same way as a full-time appointment, and the firm must first satisfy itself on the person’s personal characteristics, competence, knowledge and experience, qualifications and training.

Firms regulated only by the FCA follow the FCA’s version of the regime, where the functions that apply depend on the firm’s category. Part of our job on a fractional brief is to establish early which function, if any, the role carries and what the application will need, so the start date is planned around approval rather than surprised by it.

Career fractional and interim executives bring paperwork of their own: regulatory references covering the previous six years from every relevant former employer, each inside the four-week reply window that applies across firms. We start that list before the offer.

Sources: PRA Rulebook, Senior Management Functions Part; Fitness and Propriety Part, 2.1, 2.6 and 2.7; PRA PS12/26, 22 April 2026.

Candidates

What does a strong fractional CRO look like?

The strongest candidates have held the chief risk officer or head of risk role full time at a firm of similar size and business model, and have chosen a portfolio career rather than drifted into one. They know what a supervisor asks a small firm, they have written or owned the capital and liquidity assessments the board approves, and they can say no to a chief executive they see one day a week.

We interview on the technical substance of the role before you see a CV: the last ICAAP, ILAAP or ICARA they owned, how they set risk appetite for a growing book, how they handled a regulatory finding, and what they would do in their first month with you. The interviews are run by people who have held these roles themselves.

Process

How does a fractional CRO placement run?

  1. Brief

    A 30-minute call to settle the days, the responsibilities, the regulatory function the role carries and the reporting line to the board. We tell you if an interim or a permanent hire would serve you better.

  2. Shortlist

    Two or three people who have held the role, each interviewed on the substance of your brief, with their availability and conflicts checked against your competitors.

  3. Approval and references

    The application prepared with the candidate, the regulatory references requested from every relevant former employer, and the start date planned around the approval timetable.

  4. Start and review

    Availability, escalation and board access agreed in writing. We check in with you and the CRO at the end of the first quarter.

FAQ

Questions about fractional chief risk officers

How many days a week does a fractional CRO work?

Most arrangements run between one and three days a week, set by the firm’s risk profile and the strength of the team below the CRO. We agree the days, the availability outside them and the escalation route in writing before anyone starts.

Can a fractional CRO hold SMF4?

Yes. At a PRA-regulated firm approval attaches to the Chief Risk function the person performs, not to the hours they work, so a fractional CRO performing that function needs the PRA’s approval before taking it up.

What does a fractional CRO cost?

The firm pays a day rate for the days it contracts, so one to three days a week buys between a fifth and three-fifths of a full-time week of a CRO’s time. The rate is agreed before the start and reflects the firm’s size and whether the person holds SMF4. The trade-off is availability, so we agree in writing how the board reaches its CRO between contracted days.

Is a fractional CRO the same as an outsourced CRO?

Usually, yes. Outsourced chief risk officer and CRO as a service describe the same arrangement: an experienced chief risk officer who holds the role for the firm part-time, on a continuing basis. Where the role is a senior management function, the approval is for a named individual, not a firm.

Do you also place fractional heads of risk?

Yes, for firms whose risk function sits below CRO level, and the vetting is the same. We do not supply interim or fractional compliance officers or MLROs; for a permanent combined head of risk and compliance, see risk and compliance leadership search.

Next step

Tell us about the role

A 30-minute call is enough to agree the days, the function and whether a fractional, interim or permanent chief risk officer is the right answer.

Or book a 30-minute call

Brief us on a role

Tell us about the role and a partner will come back to you. Treated in confidence.

For example Chief risk officer (SMF4)

What kind of hire?

PDF or Word, up to 2 MB

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