In business, when companies face challenges in restructuring or reengineering, they often introduce a new role as a solution. One such emerging role is the Chief Digital Risk Officer (CDRO)—a position that addresses the intersection of digital transformation and risk management.

 

Why Digital Risk Needs Its Own Leadership Role

Digital transformation is no longer a choice but a necessity for modern enterprises. Transformations always introduce risks – sometimes significant risks—from cybersecurity threats and data privacy concerns to compliance challenges and AI governance. Traditionally, these risks have been divided under the purviews of the CISO (Chief Information Security Officer) or the CIO (Chief Information Officer).

 

As digital initiatives expand, organizations may need a dedicated leader who can oversee the risk landscape of transformation itself. That’s where the CDRO comes in. Offering (surprising) relief to the CIO and CISO.

 

Defining the Chief Digital Risk Officer’s Role

A CDRO focuses on the risks associated with digital transformation across all aspects of the business. This leader doesn’t replace the CISO or the CIO but instead works alongside them to ensure a strategic, risk-aware approach to transformation.

 

The CDRO is responsible for:

• Developing policies that define acceptable risk in digital initiatives.
• Strategizing on future digital directions as the executive with risk in mind.
• Overseeing digital risk management across AI, corporate systems, infrastructure, and product security.
• Ensuring compliance with evolving regulatory landscapes.
• Bridging the gap between cybersecurity, privacy, engineering and business objectives.

Rather than simply renaming InfoSec, cybersecurity, or product security, the CDRO creates a unified risk-focused strategy that aligns with corporate objectives.

 

Where the CDRO Fits in the Leadership Team

The CIO and CISO still have essential roles:

• CIOs focus on infrastructure, IT operations, and enabling technology.
• CISOs concentrate on threat intelligence, security operations, vulnerability & penetration testing, and protecting the corporate estate and product ecosystem.

The CDRO, however, sits at a strategic level, either above or alongside these roles, leading a smaller, focused team. Their mission is not just security but also risk foresight, ensuring digital transformations align with corporate goals without exposing the business to unnecessary vulnerabilities.

 

The Summary

As AI, cloud transformations, and regulatory expectations evolve, the Chief Digital Risk Officer may become a staple in leadership teams. Organizations that recognize the value of proactive digital risk management will be better equipped to navigate disruption, protect their assets, and accelerate innovation safely.

 

In a world where digital transformation is inevitable, digital risk leadership is no longer optional. It’s essential.