Risk Management

Founded in January of 1954, Risk Management is a monthly magazine that features news and industry analysis for corporate risk managers. The magazine has a circulation of 16,000 readers and is published by the Risk and Insurance Management Society Inc. Morgan O'Rourke is Editor-in-Chief. Jared Wade is Editor. Bill Coffin is Publisher/Editorial Director.

Articles from Vol. 55, No. 12, December

Alternative Energy: Risk Management's New Frontier
[ILLUSTRATION OMITTED] Once again, the United States finds itself in an energy crisis. The costs of gasoline, diesel, home heating oil and even electricity have risen to record levels this year, only to drop again sharply in recent months, creating...
A Slight Risk of Oblivion
It took 13 years of construction, a budget of $300 million and the collaboration of over 10,000 scientists and engineers from more than 100 countries, but on September 10, the Large Hadron Collider finally began operation. Built by the European...
A Tall Order
Though the operation and construction of the mammoth cranes used in high-rise construction is wrought with danger, tragedy rarely strikes. The past year has seen many high-profile collapses, leading many to worry that standards, processes and inspections...
A Tall Order: Though the Operation and Construction of the Mammoth Cranes Used in High-Rise Construction Is Wrought with Danger, Tragedy Rarely Strikes. the Past Year Has Seen Many High-Profile Collapses, Leading Many to Worry That Standards, Processes and Inspections Need to Be Enhanced
The past year has seen an alarming number of tower crane accidents. Historically, there are usually few or no catastrophic accidents involving tower cranes used in building construction each year in the United States, but four occurred over a four-month...
Cheap Cars, Costly Protests
[ILLUSTRATION OMITTED] When Tata Motors, India's foremost automotive manufacturer, announced earlier this year that it would begin producing a car to sell for about 100,000 rupees ($2,500), it sent shockwaves through the business world. The Tata...
Counting on Europe
Liability limits on auditing in the European Union will have global implications.Following a series of high-profile mergers and the collapse of Arthur Andersen, the number of audit firms operating internationally has been reduced significantly. At the...
Counting on Europe: Liability Limits on Auditing in the European Union Will Have Global Implications
Following a series of high-profile mergers and the collapse of Arthur Andersen, the number of audit firms operating internationally has been reduced significantly. At the same time, the audit profession has been the target of a number of high-end...
Coverage for Subprime Lawsuits
The subprime mortgage collapse and the resulting bank failures and market loss is clearly the most important risk event of 2008. Lawsuits have already begun against virtually anyone involved in the securitization of mortgages. Many of those lawsuits...
Datebook
NAIC Winter National MeetingDecember 5-8Grapevine, TexasThe National Association of Insurance Commissioners' quarterly meeting will feature committee and task force meetings to prepare for the coming year.Contact: 816.783.8100www.naic.orgThe Insurance...
Engineering Human Security
Corporate IT environments are vulnerable to a wide range of cyber-threats. Those ill charge of information security have therefore had to invest significant resources into the implementation of diverse technologies designed to protect both data...
Ethanol: Fueling Liability Risks
[ILLUSTRATION OMITTED] Ethanol producers are making more ethanol than ever to meet the country's growing demand for clean, renewable fuels. Although ethanol has been promoted as an alternative to gasoline that is both better for the environment...
Flying the Over-Friendly Skies
It has been a tumultuous year for the airline industry. Between large-scale financial losses related to this summer's record- high oil prices and a major merger discussion including everyone from United, Continental and US Airways to Delta and Northwest...
Freedom Flight
[ILLUSTRATION OMITTED] For years, Colombia had been the kidnapping capital of the world, with thousands of political figures, business executives, aid workers, missionaries and tourists snatched every year, mainly by the Revolutionary Armed Forces...
Hindsight
World Population Through the Ages 1 : 200 million 550: 250 million 1000: 275 million 1250: 350 million 1500: 420 million 1700: 600 million 1800: 900 million 1900: 1.6 billion 1950: 2.5 billion 1954:...
How Is Your Confidence Level?
Every year, public and private self-insured entities or pools determine current-year funding and prior-year reserve adequacies after consideration of confidence levels, discount rates and unallocated loss adjustment expenses developed by outsiders....
Insuring Your Most Valuable Asset
Intellectual property is often the most valuable thing a company owns. It defines and individualizes the company. Core IP is most often the company's inventions-patented machinery, devices and technology. But it could be something as seemingly simple...
Is Your ERM Program Delivering?
As the insurance industry faces an increasingly complex and uncertain financial environment, many insurers have responded by developing a more systematic and holistic, enterprisewide approach to risk management. To help judge how effectively insurers'...
Made in China
[ILLUSTRATION OMITTED] China's product safety woes continued in 2008 as more scandals called into question the ability of the country's manufacturers to monitor their supply chain. While 2007 saw lead-painted toys, defective tires, and contaminated...
Managing an Overseas Supply Chain
In March 2008, a fire gutted a South Korean LG Chem factory that was a major source of batteries for computer companies such as Dell. The result: a shortage of laptop batteries that was expected to last for the two or three months it would take...
Nothing to See Here
In the northeastern corner of North Rhine-Westphalia, Germany, is the city of Bielefeld. It was founded in 1214 to guard a crossroads in the Teutoburg Forest, but in the centuries that followed, it grew into a prosperous center of textile production....
Rail Tragedy
On September 14, a Metrolink commuter train carrying 225 passengers collided head-on with a Union Pacific freight train north of Los Angeles, killing 25 and injuring another 135, in the deadliest U.S. train crash in 15 years. The cause of the incident...
Risk from Above
Crane collapses became a topic of concern in 2008 after a series of high-profile accidents around the country drew attention to possible deficiencies in crane safety and inspection procedures. In March, seven people were killed and 24 injured after...
Spilling Over
[ILLUSTRATION OMITTED] As long-simmering concerns over subprime liabilities exploded into full-fledged market chaos in September. risk managers found their role in corporate decision-making once again thrust into the spotlight. Doubts arose over...
Tales of the 1918 Pandemic
[ILLUSTRATION OMITTED] A key mission for the Centers for Disease Control and Prevention (CDC) is to draw on lessons from past. In particular, scientists and agency officials look to public health emergencies and none has been so helpful as "the...
Talking the Talk
To Communicate with the Board Risk Managers Must Learn Its LanguageIn today's business climate, where the unchecked, excessive risk appetites of financial institutions have led to the collapse of global financial markets and staggered entire national...
Talking the Talk: To Communicate with the Board Risk Managers Must Learn Its Language
[ILLUSTRATION OMITTED] In today's business climate, where the unchecked, excessive risk appetites of financial institutions have led to the collapse of global financial markets and staggered entire national economies, risk management faces increased...
Ten Easy Steps to Fewer Workers Compensation Claims
With many 2009 budgets likely cut to the bone in response to the ongoing financial crisis, it is especially important that every employer do anything that they can do to control costs. One way to do this is to minimize the risk of losses from workers...
The Financial Meltdown in Perspective
With the largest financial crisis in memory currently choking the entire global economy, we take a look back at the other crises that have threatened-and in some cases succeeded-to take down the entire economy.Panic of 1907In October 1907, a run on the...
The Financial Meltdown in Perspective: With the Largest Financial Crisis in Memory Currently Choking the Entire Global Economy, We Take a Look Back at the Other Crises That Have Threatened-And in Some Cases Succeeded-To Take Down the Entire Economy
Panic of 1907 In October 1907, a run on the Knickerbocker Trust Company ignited a Wall Street panic the threatened to take down many major banks. Banks began calling in loans and stock prices plummeted. Ultimately, a complete meltdown was averted...
The Future of Electrical Power: It May Be in Your Hands
[ILLUSTRATION OMITTED] Ever since Thomas Edison's Pearl Street electricity generating station began to light up the streets of lower Manhattan in 1882, U.S. businesses and citizens have come to rely more and more on inexpensive, reliable electrical...
Under the Sun: The Politics of Solar Investment
[ILLUSTRATION OMITTED] In certain parts of the world, the sun will always be shining. Unfortunately for solar energy developers, that is about the only thing of which they can be certain. Everything else depends upon technology, weather, people...
Up, Up and Away
Ever since childhood, I have been a collector. Even today, my CD collection numbers in the thousands. It's all been motivated by one simple maxim: If one is good, a lot is that much better. Considering Wall Street's recent problems, this philosophy...
Who Solve Your #1 Problem
WHO SOLVE YOUR #1 PROBLEM BY GEOFF SMART & RANDY STREET [ILLUSTRATION OMITTED] The interview process is one fraught with risk. Not only is it impossible to ever know whether the prospective employee actually has the full range of experience...
Workers Compensation: It's a People Business
Workers compensation is a people business. This concept is simple to say but, too often, difficult to execute--especially given the industry's increasing reliance on technology and mass communications. But by remembering five key factors, any company...
Year in Risk 2008
ROGUE TRADER LOSES BILLIONSConsidering the vast sums of money that have been lost during the financial chaos of the last few months, $7 billion might not seem like much. But back in January, when French bank Société Générale lost that very amount as...