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Risk Management and Insurance: Perspectives in a Global Economy
26. Risk Management and Insurance
in a Global Economy: A Future
Perspective
Click Here to Add Professor and Course
Information
We are leaving this chapter discussion with you.
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Environments of the Future
The Economic Environment
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The Financial Environment
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The Political and Legal Environment
The role of government
Internationalization of the legal environment
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The Regulatory and Tax Environments
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The Sociocultural and Demographic Environments
Risk perceptions
Demographics
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The Physical and Technological Environments
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Risk Management in a Future Global Setting
Risk Management in a Future Global Setting
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Insurance in a Future Global Setting
The Private Sector
Trends in insurance demand
Trends in insurance supply
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The Public Sector
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Discussion Questions
Discussion Question 1
Former Harvard University Professor Robert Reich liked to
ask his students which they would prefer: (1) the U.S.
economy growing at 2% and Japan at 3% or (2) both
countries growing at 1%. A clear majority routinely chose the
second option.
If you are a U.S. citizen, which option would you prefer? Explain your
rationale. (If you are not a U.S. citizen, substitute your home country
for the U.S. and your country’s major trading rival for Japan, then
answer the question.)
Analyze the majority response of the Harvard students. Is it
economically rational? Why or why not?
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Discussion Question 2
Scientists examining a recently discovered meteorite
believed to be from Mars concluded that it showed some
elementary components necessary for life. Scientists also
have, for the first time, discovered scores of planets orbiting
other stars, and many believe that planets are more
numerous than the stars. What economic, political,
technological, religious and cultural effects do you believe
that the discovery of intelligent life on other planets would
have on us earthlings?
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Discussion Question 3
About 75% of the world’s proven oil reserves are in the
Middle East. Economic prosperity now and into the near
future seems inextricably tied to an ample supply of oil.
As the risk manager of a major MNC, what actions would you
recommend taking to minimize any adverse effects of another oil
shock on shareholder value?
As the head of a major OECD country whose economy depends on
Middle East oil, what actions would you recommend that your
government take to minimize any adverse effects of another oil shock
on your country’s economy?
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