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Dangerous Exposures: Risk And The Bottom Line

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Executive Summary

Nine days after the September 11, 2001 terrorist attack on the World Trade Center in New York City, Kent Smetters, then deputy assistant secretary of economic policy at the U.S. Treasury, met with a group of insurers as one of the point people for Treasury. "They said that they never expected this to happen," recalls Smetters, now an associate professor at Wharton, discussing risk management with senior financial executives in The CFO: Becoming a Strategic Partner program. Despite the insurers' contention that they never saw this coming, Smetters points out that there was a previous attack on the building in 1983. Smetters himself talked about the possibility during a program in 1998 at Wharton.

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