How the Recent Tsunami Effected Corporate Risk Management The major topic of the discussion that concerns effects of the tsunami is the promotion of risk management services and implementation of warning mechanisms. The first problem now lies in the attitude of the people to the insurance services. Insurance system provides clients with a perfectly working mechanism, which foresees a range of all potential dangers and risks, which may occur, adjusting the system to the special needs of the clients. Further promotion of insurance programs must be a direct reply to the aftermath of disastrous tsunami. The fact is that insurance companies didnt go in a large number of the countries that faced tsunami of 2004, including those countries that suffered the greatest loss. (2) The aid of the foreign countries cannot replace insurance.
Moreover, this aid often harms the economy and business in the regions that had suffered from the disaster. Such accident occurred when one of the European countries sent several tens of thousands of sandals to Sri Lanka, thus oppressing the native business. (1) Besides, donation supplies are not sent to all regions that face disasters. Unfortunately, most countries make their choice, seeking for place where their help will be most visible for others, so these donations are unreliable. In the majority of cases charity is interested in the most outstanding events, passing those that didnt grab much attention. Insurance is a reliable establishment, which proved its value within the centuries. But this system develops rather slow, often being unready to changing reality.
The Essay on Sri Lanka Tsunami Warning System
Tsunamis are rare in the Indian Ocean, which has no system for detecting then and alerting those in danger. Scientists do not have the equipment to tell when an earthquake has created a tsunami. The first notice of the earthquake that anyone at the Pacific Tsunami Center received was a computer-generated image set off by seismic sensors at 2: 59 p. m. on Saturday. Hawaii has warning sirens, and ...
For example, in the USA a large number of people neglect earthquake and flood insurances. Not all the people realize the necessity of buying insurance, tending to underestimate dangers they are not faced with in their everyday life. Moreover, people often are ready to risk when the matter concerns scaled disastrous in order to avoid small but real money loss, which they will face paying for insurance. (3) To forge out more effective replies to the disasters, society has to provide insurance institutions with more favourable environment. The most effective method will be making it compulsory for everyone. As it is almost impossible, the service should be successfully promoted, or people may wait for the disaster, hoping that the state government or charity organizations will rescue them if something happen. Many of the worst outcomes in Asia occurred in tsunami-prone areas, such as the low-lying coastal areas of Sri Lanka. Private insurance would discourage construction in the most dangerous locations, owing to prohibitively high premiums, while encouraging the adoption of tsunami-resistant building standards in marginal areas.
(3) Fortunately, the insurance industry is getting more and more perfect. A number of disaster bonds, including possible floods, earthquakes, or other natural cataclysms appeared on financial markets. The markets for the services ate relatively small, but they have tendencies to fast development and improvement. Their growth will provide insurance institutions with the possibilities to cover more kinds of risks. The case with tsunami of 2004 revealed that none of the countries had special warning system that could prevent such disastrous effect. It is not because of someones mistake or lack of foresight, it is because those countries didnt have the possibility to work out such mechanisms.
This happened because there were no international organizations that could provide warning mechanism for a wide range of disasters. At present, effective and safe mechanisms of evacuation are also worked out in order to withstand all kinds of possible natural disasters. (3) The insurance companies assume the responsibility to take concrete measures to enlarge coverage of risks. The governments, in their turn, promote risk management by the means of correct regulation and support of innovations in the sphere of insurance. Works Cited Chang, H. (September, 2005) When Disaster Strikes, United Supply Chain Efforts Can Enhance Relief Work. Stanford University Estimating Losses From the 2004 Southeast Asia Earthquake and Tsunami. RMS Special Report Shiller, R.
The Essay on Fenton Hope Work People
In today's society, a job is necessary. Many people get up every morning hating what they do, but as the working class people we have to learn to live with it. Not everything we do we will like. Fenton is a worker for Seaboard World Airlines. He's an everyday person that wakes up every morning to go to work. The difference between other people and Fenton is the fact he hates his job. I say he ...
(2005) Can We Insure against Tsunamis? Project Syndicate.
