Terrorism is a form of risk that is impossible to manage. - Discuss Essay

Terrorism is a form of risk that is impossible to manage. - Discuss - Essay Example fact, the above views present the reality as it has been experienced by many people around the world after a series of relevant attacks that have been occurred in U.S., in Spain, in Britain and in almost all countries of the Middle East region. From another point of view, Kunreuther (2006, 38) has supported that ‘natural disasters and terrorist attacks are examples of what have been classified as low probability-high consequence (LP-HC) events; despite the first half of their title, these events are now in the headlines with increasing frequency’. It should be noticed however that although the above events are considered as quite possible to be repeated frequently, there is no sufficient provision for their prevention. Moreover, it has been stated that ‘there are features of these potentially catastrophic events that need to be carefully examined in order for individuals, firms, and governments to take steps today to reduce the risk of their occurrence in the future and to reduce the consequences should they occur; every government in the world faces the question of how to help its citizens face the risks of catastrophe but reducing these risks requires a concerted effort by individuals and firms’ (Kunreuther, 2006, 38). This weakness of the state to respond effectively to the needs of individuals and institutions that have suffered significant losses from terrorist attacks has led to the need for the creation of specific programs offered by insurance companies that focus on the provision of compensation to the victims of terrorist attacks (either individuals or organizations). Under these terms it has been found that ‘the institutions, programs, and policies that provide benefits to businesses and individuals affected by an accident, natural disaster, terrorist attack, or other type of loss can be thought of as a system composed of four primary compensation mechanisms: insurance, the tort system, government programs, and charity; together these