Now you see them. (Editor's Prologue).

New faces are appearing at the helm of some risk management departments these days. Many have come up through traditional risk management ranks, but others have backgrounds in finance or accounting. They may have experience in insurance and loss control, but they also have strong communication skills and the expertise to recognize anything that could hinder the company's performance.

Often known as chief risk officers, these new leaders manage enterprise risk. "The move to CRO started before Sept. 11, but it moved much more rapidly after that," said Roger Andrews, director of risk management for E.D. Bullard Co. in Cynthiana, Ky., and a past president of the Risk and Insurance Management Society. "But even though the number of CROs is increasing, the traditional risk manager will not become extinct," Andrews said. "There are enough positions that aren't risk officers. Not every company has a place for a CRO."

Our cover story, "Microscope or Binoculars" (page 21), describes the roles of the risk manager and CRO and introduces people who have chosen each path. In both roles, however, risk professionals today face a host of challenges, which they'll discuss at the 41st annual RIMS conference in Chicago this month. In "Hard Times" (page 29), Lance Ewing, who will be installed as president of RIMS at the conference, talks about some of those challenges, including integrity issues.

Although the position of CRO is receiving a lot of attention now, Andrews predicts it will soon become a tradition. "In three to five years, it will become so integrated and common that it won't be looked upon as something unusual," he said. "It will meld with the view that many risk managers have always had--that we are responsible for the risks of the entire company. And one thing is certain: there won't be any going back to the traditional risk manager role exclusively. Once they make that step, companies won't reverse themselves, in the same way that progressive companies that hired the first risk managers never went back."

SALLY WHITNEY

Sally Whitney is editor. You may reach her at [phone], Ext. 5340, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at [e-mail]. The e-mail address for Best's Review is [e-mail].