SOX, COSO FALL SHORT
I applaud your candor and accurate depiction of the travesties that one must endure in the industry sector as a result of these infrequent catastrophic, albeit not cataclysmic, failures (Risk & Insurance®, Roger on Risk column, May 2008, Page 14).
However, I would like to argue with you about your statement that "banks are almost as bad."
In my opinion, some financial institutions are far worse than insurers and reinsurers could ever be.
At the very least, a comparison of insurers and reinsurers to some financial institutions would be like the former gambling at the baccarat or blackjack tables with a 10 percent or 20 percent table stake while the latter bets it all and then some on Keno or roulette.
The demise and cataclysmic losses by some of the financial institutions from their subprime and credit default swap positions in the next year will make the Security Capital Associates failure look like a cake walk.They have already made Enron look like a Sunday brunch!
So much for the effectiveness of the Sarbanes-Oxley Act, and of the Committee of Sponsoring. Organizations of the Treadway Commission with regard to financial risk management.
Director of Risk Management
WCI Communities Inc.
PEOPLE, NOT GUNS, AT ISSUE
In answer to all the examples you gave (Risk & Insurance®, Counterpoint, May 2008, Page 42), if an armed citizen had been present at the time of those tragedies, none would have been as bad.
If the people had not had their right to bear arms infringed upon by corporate do-gooders, then it would prevent people from feeling capable of carrying out these types of crimes.
This attitude towards a constitutional right feeds into this.How many acts of workplace violence take place every day without guns?Hundreds if not thousands of incidents.
Stop worrying about guns and start worrying about the people we hire!
If these thugs, bullies and morons feel empowered to be able to get away with it, they will continue.Time needs to be taken to examine these people and ask the right questions during the hiring process and any discipline process.
If someone came at me with a weapon, I can feel confident that I can take care of the situation.
After all, as the courts have shown, the police have no obligation to protect you, only to clean up the mess.
Response time in many rural areas is measured in multiples of ten minutes. That is my take on the matter.
"Gun-free" zones are nothing more than an invitation to criminals and loons to take advantage of ordinary citizens.
Thomas R. Potter
Insurance, Safety & HR Manager
Futurex Industries Inc.
August 1, 2008
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