The first variable we collect data on is a dummy variable whether the CRO is a member of the executive board (CRO in executive board). If the CRO is a member of the executive board, his influence and power are expected to be larger as compared to a CRO who is situated on the third management level. (Aebi et al, 2012)
 
Hence, having a CRO in the executive board and having a risk committee both do not seem to positively affect the banks’ stock returns during the recent credit crisis (Aebi et al, 2012)