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An Analysis of the Risk Management in the Case of Terrorism

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Author Info
Gabriela Prelipcean () (Stefan cel Mare University, Suceava, Romania)
Mircea Boscoianu () (Military Technical Academy, Bucharest, Romania)
Abstract

The management of crises caused by terrorist attacks proved an insufficient capacity of the governments to manage extreme risks in most of the recent cases. After the ‘90s, the philosophy of terrorism changed and it therefore requires immediate governmental intervention. The mega terrorism that occurred on the private insurance markets triggered the loss of the functionality character. A financial analysis of the terrorism processes, considered as catastrophic risk, by using the risk theories, risk management and financial risks is proposed. This kind of analysis should include the specific aspects of the terrorism processes. Also, an insurance system based on the public-private partnership against the catastrophic risk is proposed. It will be demonstrated that the main problem is the assessment of risk in the very low demand for this type of risk coverage.

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Article provided by Department of International Business and Economics from the Academy of Economic Studies Bucharest in its journal Romanian Economic Journal.

Volume (Year): 10 (2007)
Issue (Month): 25 (November)
Pages: 136-146
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Handle: RePEc:rej:journl:v:10:y:2007:i:25:p:136-146

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Keywords: terrorism risk management governmental intervention insurance public-private partnership

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