Indeed for many companies it is developing too fast. Issues of corporate governance, environmental liability, consumer opinion and competitors' behaviour are all putting pressure on companies to improve their risk management approach. The best-run companies are able to respond to these challenges fairly well, but even they are having to reassess what their risk management strategy is and what it should be in the future. Four key factors are driving the development of risk management. Regulations coming from governmental or statutory sources are playing a critical part in driving risk management.
Loss prevention is the next important factor.
The improvement of business processes as a result of good risk management is a growing factor. Protection of reputation is the fourth factor. She adds that the relative priority of these factors is constantly changing, that while regulations are currently paramount in risk managers' minds this concern will eventually be superseded by the realisation that businesses will benefit by appropriate risk management strategies. Kingsmill's focus on the importance of regulations is underlined by others. It is now being followed by recommendations from the Turnbull Report and by the Basle Committee which lays down regulations for the banking industry worldwide.