Here is my last post for the semester.
And I chose this article.
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/21/AR2009042103804.html
AIG's reputation has been severely injured.
However, as we discussed in class the financial products divisions were the ones mainly responsible for this massacre and credit default swap contracts were big part of it.
Insurance division on theother side is performing quite well.
Last week Zurich has bought the auto insurance division of AIG.
Now, AIG is concerned how they should restructure their reputation.
One thing stated on the article was about AIU holdings.
They are basically trying create a holding company that has the name AIU.
I think this is a smart approach towards repositioning of their business lines.
Without being information savvy, who would know that one part of AIG was responsible for the majority of the mess?
As risk managers there are many things we must consider.
In this case AIG's reputation is being considered.
Companies must take necessary steps in order to survive in our world and their values are derived by how good they accomplish those steps.
In Dr. Grace's class we have learned so much.
It was very difficult for me, however, I am glad that I was able to major in RMI.
Tuesday, April 21, 2009
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