This case is aboutÂ RISK MANAGEMENT
PUBLICATION DATE: March 27, 2003
Insurer of Last Resort?: The Federal Financial Response to September 11Â Case Solution
Analyzes the national financial response to September 11, 2001: terrorism reinsurance, the victim compensation fund, emergency assistance to New York and Washington, and the airline bailout. Less than two weeks after the strikes, the government had devoted nearly $40 billion to relieving the sufferers and safeguarding the economy. A little over a year afterwards, these measures were joined by the development of a federal terrorism reinsurance system, originally proposed by the White House in October 2001.Â On the surface, the federal fiscal response to September 11 was perplexing. The questions emerged such as if most of the attacks negatively affected the countryâ€™ Or is the traditional attitude toward government economic intervention in the United States more complicated than the phrase “laissez-faire” (or “free market”) suggests? Over here, the correct role of the government in managing the risk as well as counteringthe disasters and then asks students to contemplate whether each of the various initiatives–and really the program as a whole–was a success or a failure.