Global Risk Management: Financial, Operational, and Insurance Strategies

In this age of international terrorism and international economic contagion, it is clear that "globalization" in its broadest sense - i.e., the "breaking down of barriers" - is often a double-edged sword. The world economy of the early twenty-first century offers substantial growth potential and strategic benefits for firms, but it also entails much risk, which must be measured and managed effectively. Consequently, business in today's world must constantly be alert to opportunities afforded by improving technology and financial market integration as they seek to develop successful risk management programs. Often viewed as a narrow field focusing on derivatives or insurance, risk management is in fact a much broader discipline, encompassing operational strategies as well as the financial and/or insurance decisions of the firm. This is particularly true for complex business enterprises operating in the international market. In view of the importance of risk management in practice as wel