Preface
Part I: Introduction
1 Introduction to Risk Management and Insurance
Introduction
The Importance of an International Perspective
Risk Management and Economic Growth
The Language of Risk and Insurance Internationally
The Environment for Risk and Insurance Internationally
The Structure of this Book
Discussion Questions
Notes
References
2 Risk Perceptions and Reactions
Introduction
Individual Decision-Making Under Uncertainty
Business Decision-Making Under Uncertainty
Societal Decision-Making Under Uncertainty
Conclusion
Discussion Questions
Notes
References
3 The Economics of International Trade
The Economic Theory of Trade
Fair Trade Concepts
International Trade in Insurance: Economics and Policy
Conclusion
Discussion Questions
Notes
References
Part II: Factors Shaping the Risk Environment Internationally
4 Societal Risk Assessment and Control: Theory and Practice
Introduction
The Role of Government in Societal Risk Management
Alternative Approaches to Societal Risk Management
Understanding Societal Risk Perceptions and Decision-Making
Conclusion: The Ultimate Risk Bearer
Discussion Questions
Notes
References
5 Catastrophe Risk Assessment: Natural Hazards
Introduction
Catastrophic Events: Definition and Trends
Types of Natural Disasters
Conclusion
Discussion Questions
Notes
References
6 Catastrophe Risk Assessment: Human Factors
Introduction
Terrorism
Critical Infrastructure Risks
Environmental Risks
The Role of the Precautionary Principle
Conclusion
Discussion Questions
Notes
References
7 Societal Risk Management and Changing Demographics
Introduction
The Demographic Transformation
Implications for Fiscal Balance
Economic Growth and Labor Market Challenges
The Challenges to Financial Markets
Implications for International Relations and Stability
Conclusion
Discussion Questions
Notes
References
8 Regulation of Private-Sector Financial Services
Introduction
Private-Sector Financial Services
Government's Role in Regulating Private-Sector Financial Services
Overview of Financial Services Regulation
Structure of Regulatory Authorities
Governmental Actions Affecting Financial Services Regulation
Conclusion and Future Prospects:
Discussion Questions
Notes
References
9 Public-Sector Economic Security
Introduction
Why Private Markets Fail to Provide Some Financial Services
Selected Public-Based Economic Security Services
The Future of Social Insurance
Discussion Questions
Notes
References
10 The Legal Environment
Introduction
Major Legal Systems of the World
Substantive and Procedural Law
Tort Law Variations Internationally
International Variations in Contract Law
Choice of Law and Free Trade
Discussion Questions
Notes
References
11 Sociocultural Effects on Risk Management
The Intersection of Culture and Risk Management
Culture and Informal Risk Management Arrangements
Microfinance
Risk Perception Theories and Formal Insurance
Conclusion
Discussion Questions
Notes
References
Part III: Enterprise Risk Management in a Global Economy
12 Enterprise Risk Management
Introduction
The Evolution of Enterprise Risk Management
Risk Management Fundamentals
The ERM Framework
The Risk Management Process
Conclusions
Discussion Questions
Notes
References 23 PM
13 Internal Loss Financing Arrangements
Introduction
Motivations for Internal Loss Financing
Self-Insurance
Captive Insurance Companies
Other ART Techniques
Conclusion
Discussion Questions
Notes
References
14 External Loss Financing Arrangements
Introduction
Risk Financing Through Derivatives
Risk Financing Through Insurance
Integrated Loss Financing Arrangements
Conclusion
Discussion Questions
Notes
Appendix 14A: Proof of Currency Relations
Appendix 14B: Pricing Currency Options
References
15 Risk Management for Catastrophes
Introduction
Risk Analysis
Risk Control
Risk Financing
Conclusion
Discussion Questions
Notes
References
16 Personnel Risk Management
Employee Benefits
Risk Management for International Employees
Conclusion
Discussion Questions
Notes
References
17 Political Risk Management
Introduction
Modes of Foreign Market Entry
Nature of Political Risk
Risk Analysis
Risk Control
Financing the Political Risk Exposure PM
The Importance of Monitoring
Political Considerations in Emerging Markets
Conclusion
Discussion Questions
Notes
References
18 Intellectual Property and Technology Risk Management
Introduction
Intellectual Property Risk
Information Technology Risk
Biotechnology Risk: The Human Genome Project
Nanotechnology Risk
Technology and the Environment
Conclusion
Discussion Questions
Notes
References
Part IV: Insurance in a Global Economy
19 The Economic Foundations of Insurance
Expected Utility and the Demand for Insurance
Insurance Supply: Characteristics of Ideal Insurable Exposures
Conclusion
Discussion Questions
Notes
References
20 The Nature and Importance of Insurance
The Insurance Production Process
Overview of Insurance Worldwide
The International Dimensions of Insurance Supply
The Role of Insurance in Economic Growth
Determinants of Insurance Market Structure
Conclusion
Discussion Questions
Notes
References
21 Life Insurance
Introduction
Policies Sold by Life Insurance Companies
Selected Life Insurance Markets Internationally
Conclusion
Discussion Questions
Notes
References 7:49:24 PM
22 Nonlife Insurance
Introduction
Policies Sold by Nonlife Insurance Companies
Selected Nonlife Insurance Markets Internationally
Nonlife Insurance Issues
Discussion Questions
Notes
References
23 Reinsurance
Introduction
Worldwide Risk Sharing
Reinsurance Demand
Reinsurance Fundamentals and Operations
Reinsurance Markets
Reinsurance Regulation
Conclusions
Discussion Questions
Notes
References
24 Regulation and Taxation in Insurance Markets
Introduction
Insurance Regulation
Taxation in Insurance
Conclusion
Discussion Questions
Notes
References
25 Financial Services Integration
Introduction
Meanings and Forms of Integration
The Economics of Integration
Management Issues in Integration
Public Policy Concerns in Integration
The Future of Financial Services Integration
Discussion Questions
Notes
References
Part V: Conclusions
26 Risk Management and Insurance in a Global Economy: A Future
Perspective
Introduction
Environments of the Future24 PM
Risk Management in a Future Global Setting
Insurance in a Future Global Setting
Closing Observations
Discussion Questions
Notes
References
Glossary of Key Terms and Acronyms
Index
