Rising from the Ashes: A Governance Perspective on Emerging Systemic Risks
Unpredictable events -like an infrastructure failure such as a blackout (e.g. the 1999 southern Brazil blackout or the northeast blackout of 2003 that occurred in the US and Canada), a large-scale financial crisis with deep consequences on the real economy (e.g. the Icelandic and the Greek crises), a non-conventional terrorist attack (committed with chemical, biological, radiological, nuclear weapons), the risk related to the exploitation of new technologies (typically nanotechnologies), or a geophysical event (as the 2010 volcanic ash crisis or the 2011 Japan earthquake) - may suddenly cause large-scale losses. The knock-on effect of these events grows beyond the direct social and economic impact on a specific geographic area, affecting simultaneously different regions and imposing immediate regulatory answers.
Risk Management and Insurance: Perspectives in a Global Economy
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
Failures in detecting volcanic ash from a satellite-based technique
Abstract Immediate and accurate detection of airborne volcanic ash is an operational imperative of the aviation industry, especially jet aircraft. Ash encounters place passengers aboard these aircraft at severe risk and significantly impact, via forced rerouting, both the safety and profit margins of freight carriers due to their limited fuel supply. Moreover, the airlines can suffer high economic costs for repair and replacement of equipment. Operational detection and tracking of volcanic ash by most national weather services has relied heavily on a split window differencing technique of thermal longwave infrared channels on currently operational satellites. Unfortunately, prior work on volcanic ash detection has not emphasized the dynamical interaction between the erupting volcano and the effects of overlying atmospheric water vapor, phreatic and phreatomagmatic water sources. Six volcanic ash eruptions from around the globe were chosen for study because they have wide variation in ambient atmospheric water vapor, available ground and surface water and different magma types. Results show that the present differencing technique is not uniformly effective in properly classifying volcanic ash pixels in the satellite scene and often falsely interprets meteorological clouds as volcanic ash clouds and conversely. Moreover, it is not always a robust early detector, an operational aviation requirement. Seasonal variability in global integrated atmospheric water vapor, coupled with the geographical distribution of currently active volcanoes, suggests the concerns discussed herein with regard to six specific eruptions, have applicability to the global aviation industry. Operational implications are discussed and a strategic proposal is presented on necessary steps to improve detection.