Analysis of Finite Risk as International Risk Management in Japan and Australia: With Special Reference to the Collapse of Insurance Companies due to the Nine Eleven Attacks

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概要

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• This paper provides a comparative analysis of international risk management with respect to finite risk1 for two countries, Australia and Japan that suffered losses from the airplane crashes of 9/11 (nine-eleven). Finite risk used to manage risk forced an insurance company in Japan and another insurance company in Australia into bankruptcy. Finite risk was originally created as a risk management strategy and has been extensively used in recent years by multinational corporations through their insurance subsidiaries, as well as by internationally-operated insurance companies. Like other structured finance strategies, finite risk is considered an advantageous hybrid risk strategy in finance that features both insurance and finance mechanisms. This paper argues that finite risk provides various benefits, especially when companies deal with international risk, because finite risk can more effectively deal with unexpected situations. Collapse of insurance companies illustrates that finite risk applied internationally has inherent problems of abuse. By comparing related cases in two countries, Japan and Australia, this paper examines the problems associated with finite risk, and then proposes possible solutions and suggestions.JEL Classification: F30, G32, G34, M21, M48

著者

• MAEDA Yuji

  Associate Professor, Institute of Business and Accounting, Kwansei Gakuin University

関連論文

• Analysis of Finite Risk as International Risk Management in Japan and Australia: With Special Reference to the Collapse of Insurance Companies due to the Nine Eleven Attacks

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