Chapter 2 - Risk and Society Flashcards
Do we have a culture of risk acceptance?
No, risk prevention
What has bought the interconnectivity of risks?
Globalisation of big businesses
The purpose of health and safety law is to..
decrease workplace injury, long-term illness and death . It pursues a realistic balance between risks and benefits
What are the main remedies for loss and damage?
Access to law, money compensation
Have known risks become more volatile (less predictable) ?
Yes
When does corporate crisis occur?
After a long period of successful growth, a business corporation suffers the effect of poor/corrupt leadership
Name 3 modern day risks people may be exposed to no matter the country they reside in
- Nuclear radiation
- Global Warming
- Mobility of Disease
Why may compensation culture be bad for risk management?
Fear of litigation leads firms to box tick as opposed to being alert to risks and safety
Is Equitable Life a Man-made disaster?
Yes
What type of risk is failure to upgrade infrastructure?
Economic risk
List the downside and upside risks from genetic testing for insurers
Downside risk: Customers may buy life assurance and not inform the insurer
Upside risk: Insurer can use the data from the genetic testing to understand risks better and hence have more accurate premiums
List three Societal Risks
- Water and Food crisis
- Large scale involuntary migration
- Rapid and massive spread of infectious diseases
List 3 Political Risks
- Terrorist attacks
- State Collapse
- Weapons of mass destruction
List 3 Economic Risks
- Energy price shock
- Failure of a major financial mechanism or institution
- Failure of critical infrastructure
What are the challenges and opportunities for insurers?
New Technologies, Demographic shifts, frequency of extreme weather events, Economic uncertainty, new entrants into the insurance market
