Study: Crisis fallout highlights need for risk management

If there is anything the recent financial crisis has brought to the industry, it's that firms have come to a greater understanding of their risks, a study conducted by the Economist Intelligence Unit (EIU) finds.

The rapid globalization of industries and new forms of regulation are likewise putting risk management practices under more careful scrutiny, the study added.

The study, conducted between June and July 2010, interviewed eight C-level risk and compliance officers in seven industries from five continents around the world.

"The recent financial crisis has caused a shakeup in the way companies think about risk and compliance, not just in the financial services industry," explained Sudhir Thomas Vadaketh, senior editor at EIU. "It has certainly influenced people's understanding of risk.

Vadaketh said the development of a lot of new markets around the world and the recent power shift from Western to Eastern markets have likewise affected the risk appetites of businesses.