Mr. O'Hare added that, "knowing you're taking the risks is important. Many companies don't know what risks they are taking."

Mr. O'Hare called upon risk managers to help put an end to the management of risks in a "silo fashion" by making an effective case with senior management for the creation of enterprise-wide risk management programs, overseen by chief risk officers.

He explained that there is a "substantial overlap among many risks," but that in most cases risk managers are not responsible for managing risks across the entire enterprise.

"Managing risks in silos is inefficient and costly," he said. "Even more frightening are the risks that fall between the silos, unnoticed, leaving the organization severely exposed."

The "smartest CEOs and Boards" are taking more interest in risk management and "recognize this as a matter of good corporate governance," he said.

Mr. O'Hare stressed that it is vital that Congress enact a federal terrorism insurance backstop. "I guarantee you that the impact on the economy will be devastating in the event of another major incident?especially now that many companies are going without terrorism coverage," he said.