It’s wonderful to talk about holistic risk management, trade risk, supply chain disruption, pollution, etc. However, the problem is there is simply too little capacity in the market to handle “the bad one” like BP, like the Japanese earthquake, like Texas city in todays dollars. In this regard,the so called holistic risk needs a risk finance approach rather than a risk transfer approach, which usually entails a different market place than insurance. Just my point of view.
It’s wonderful to talk about holistic risk management, trade risk, supply chain disruption, pollution, etc. However, the problem is there is simply too little capacity in the market to handle “the bad one” like BP, like the Japanese earthquake, like Texas city in todays dollars. In this regard,the so called holistic risk needs a risk finance approach rather than a risk transfer approach, which usually entails a different market place than insurance. Just my point of view.