Forum 1 - Chapters 1 & 2 Assignment Example | Topics and Well Written Essays - 250 words

Forum 1 - Chapters 1 & 2 - Assignment Example Economic dependency on maritime transportation refers to how a given country relies on maritime transportation as the countries’ main source of economic empowerment. The US has a 14% adjacency of its counties to the coastline and ends up generating a staggering 45% of the nations’ gross domestic product (GDP) and an average of 3 million jobs. A point that goes to prove how dependent we can be on maritime transportation for economic development (GAO-12-1009T, 2012). The maritime transportation security act was enacted by congress and signed into law by the then American president on November 25th, 2002 (S.3639, 2010). This law requires port facilities and vessels to carry out threat vulnerability assessments and come up with well developed and thought through security plans that is inclusive of passengers, vehicles and baggage screening parameters as well as establishing restricted areas, identification procedures and advanced surveillance systems (PUBLIC LAW, 2002). This compliance of this security act has resulted in the creation of a secure environment in the ports. The department of homeland security (DHS) is the lead agency responsible for the implementation of maritime transportation security act with the help of subsidiary bodies like the U.S, coast guard. The security act can be attributed to a number of challenges that include acquiring security port facility and vessels, a more interconnected port system with regard to new technologies and a much heightened international supply chain security. The maritime security act has also undergone challenges in program implementation and management, poor partnerships and collaboration, terrorism and funding (CRS Report for Congress, 2007). CRS Report for Congress. (2007, May 14). Maritime Security: Potential Terrorist Attacks and Protection Priorities. Congressional Research Service. Retrieved May 5, 2015, from CRS Report for Congress:

American International Group Case Study Example | Topics and Well Written Essays - 1000 words

American International Group - Case Study Example The major business line of American International Group are functions, supports, services, and operations. The failure of these lines would result on the huge material loss of profit, revenue and franchise value for the organization as a whole. Therefore, American International Group prepared a resolution plan and for that purpose 22 companies as material entities were identified, from which one is AIG Markets, Inc; and the type of this entity is derivatives intermediaries. Fear of revenue, profit and franchise value loss motivated organization to be a part of derivatives market. American international group utilizes derivatives as a part of the company’s risk management framework. The major purpose of the company in entering in a derivative market is to mitigate the risk either by providing a profile of the investment or by hedging exposure. American international group is no longer engage in activities of derivatives that contributed materially to concerns throughout the fin ancial crisis or also not act as a market for the contracts of derivatives. The exposure of derivatives and derivative portfolio is examined on a regular basis in order to avoid any risk and fulfill the market standards of investment. Interest rate derivatives are used to deal with interest rate risk that is associated with insurance assets and liabilities. The company is involved in making investments in hybrid securities in order to generate more income. Therefore, company is involved in such derivative activities that are associated with investment operations for risk mitigation (AIG, 2014). After the financial crisis of 2008 the insurance industry like other industries faced backslash, this crisis and other infamous events proven as threat for the economy of the country. Many of American people rely on financial services for ability to get more mortgages, for investment opportunities and retirement savings. When ethical analysis taken into consideration, and the