Ransomware rise calls for stronger cyber resilience

2020 ◽  
Keyword(s):  
Insurance Industry ◽  
Direct Costs ◽  
Lost Sales ◽  
Employee Productivity ◽  
Incident Response ◽  
Department Of Justice ◽  
Content Type ◽  
Digital Devices ◽  
The Us ◽  
New Business

Subject Ransomware attacks. Significance The US Department of Justice has described ransomware as a “new business model for cybercrime”. Ransomware makes part (or all) of an organisation’s computer systems unavailable and can affect the victim in various ways: system downtime, lost employee productivity, lost sales, and direct costs including incident response and restoring/replacing affected machines. Impacts A rise in remote working due to COVID-19 will have a mixed impact on the escalation of ransomware attacks. Organisations stressing good cybersecurity hygiene on both work and domestic digital devices will be better prepared. The cybersecurity insurance industry will continue to expand.

Expected corruption and business formation

2014 ◽  
Vol 3 (2) ◽  
pp. 292-305
Author(s):  
Noel Campbell ◽  
Adriana S. Cordis
Keyword(s):  
Standard Model ◽  
Design Methodology ◽  
Entrepreneurial Activity ◽  
Content Type ◽  
The Us ◽  
New Business ◽  
Public Corruption ◽  
The Usa ◽  
The Impact ◽  
Business Venturing

Purpose – The purpose of this paper is to investigate whether public corruption influences entrepreneurial activity in the USA. Because the true underlying level of corruption is inherently unobservable, it cannot be factored into business venturing decisions. The authors hypothesize, therefore, that new business venturing should be related to the expected corruption level. Design/methodology/approach – The authors follow Cordis (2009) to calculate the expected rate of public corruption given observed levels of public corruption. The authors embed the expected level of corruption in a relatively standard model of business venturing, which the authors estimate using a cross section of the US states covering the period of 1986-2009. Findings – Using a relatively standard model of business venturing that accounts for variation in predicted corruption levels, the authors find that entrepreneurs launch more businesses in states with higher predicted corruption. Originality/value – To the knowledge, no one has previously tested the impact of expected corruption on entrepreneurial activity.

US prison population will increase under Trump

2017 ◽  
Keyword(s):  
Prison Population ◽  
Attorney General ◽  
Department Of Justice ◽  
Private Prisons ◽  
Market Mechanisms ◽  
Content Type ◽  
High Profile ◽  
The Us ◽  
2016 Election ◽  
Incarcerated Population

Subject Politics of the US criminal justice system. Significance On February 23, Attorney General Jeff Sessions rescinded a memorandum issued by his predecessor aimed at phasing out Department of Justice contracts with companies for operating private prisons. Stocks of these companies rose following President Donald Trump's November 2016 election win, and his administration is pursuing policies that will increase the size of the incarcerated population. Impacts Election-driven pressures to cut costs will dissuade officeholders from funding recidivism-reducing education and job programmes. Lack of competition in the private prison sector will undercut market mechanisms for better service delivery at lower cost. Voters are likely to focus on memorable high-profile crimes when establishing policy preferences rather than overall statistical declines. Conservatives are more likely to overestimate crime trends than liberals, which will limit political dividends for pro-reform Republicans. Federal detention of gang members and deportation to their countries of origin could consolidate transnational criminal networks.

The US federal crop insurance program: a case study in rent seeking

2019 ◽  
Vol 80 (3) ◽  
pp. 339-358
Author(s):  
Vincent H. Smith
Keyword(s):  
Interest Groups ◽  
Federal Government ◽  
Insurance Industry ◽  
Crop Insurance ◽  
Rent Seeking ◽  
Content Type ◽  
Government Subsidies ◽  
Insurance Reform ◽  
Insurance Program ◽  
The Us

Purpose Rent seeking is endemic to the process through which any policy or regulatory initiative is developed in the USA. The purpose of this paper is to show how farm and other interest groups have formed coalitions to benefit themselves at the expense of the federal government by examining the legislative history of the federal crop insurance program. Design/methodology/approach The federal crop insurance legislation and the way in which the USDA Risk Management Agency manages federal crop insurance program are replete with complex and subtle policy initiatives. Using a new theoretical framework, the study examines how, since 1980, three major legislative initiatives – the 1980 Federal Crop Insurance Act, the 1994 Crop Insurance Reform Act and the 2000 Agricultural Risk Protection Act – were designed to jointly benefit farm interest groups and the agricultural insurance industry, largely through increases in government subsidies. Findings Each of the three legislative initiatives examined here included provisions that, when considered individually, benefitted farmers and adversely affected the insurance industry, and vice versa. However, the joint effects of the multiple adjustments included in each of those legislative initiatives generated net benefits for both sets of interest groups. The evidence, therefore, indicates that coalitions formed between the farm and insurance lobbies to obtain policy changes that, when aggregated, benefited both groups, as well as banks with agricultural lending portfolios. However, those benefits came at an increasingly substantial cost to taxpayers through federal government subsidies. Originality/value This is the first analysis of the US federal crop insurance program to examine the issue of coalition formation.

Kleptocracy and foreign corruption manifesting in illicit financial flows

2018 ◽  
Vol 25 (3) ◽  
pp. 681-701 ◽  
Author(s):  
Ted C. Moorman
Keyword(s):  
Ethics Education ◽  
Financial Crime ◽  
Department Of Justice ◽  
Government Officials ◽  
Financial Flows ◽  
Content Type ◽  
Foreign Government ◽  
Creative Solutions ◽  
The Us ◽  
Asset Forfeiture

Purpose The purpose of this paper is to identify the place of kleptocracy and foreign corruption within the broader framework of financial crime. This facilitates understanding the importance of kleptocracy and foreign corruption as social problems. Two other aims are to better understand the most problematic components of a kleptocratic network and the most effective combatants of that network. A subsequent goal is to offer solutions from a broad range of interventions, including policy, technology, education, research and collaborative efforts. Design/methodology/approach Theoretical economic concepts are used to analyze the importance of kleptocracy and foreign corruption. A small in-depth survey of 15 experts is conducted to identify the most problematic components of kleptocratic networks and the most effective combatants of those networks. The proposed solutions are based on a combination of argumentation, econometric developments, application of trends in related fields and material from in-depth surveys. Findings This paper identifies kleptocracy and foreign corruption as one of the most, if not the most, devastating financial crime according to its impact on the total marginal utility of wealth. Experts identify foreign kleptocrats or corrupt foreign government officials as the most problematic entities in kleptocratic networks and the most effective combatant is identified as the US Department of Justice. By adding up fines and asset forfeiture related to corruption, penalties are found to be a small fraction of the problem in terms of monetary magnitude. Research limitations/implications The paper does not attempt to make causal claims because of the nature of the paper’s purpose and methodology. Practical implications The paper offers suggestions and methods for academic researchers who may wish to pursue a research agenda that is empirical and forensic with the aim of combatting kleptocracy and foreign corruption. The paper describes how information on kleptocracy and foreign corruption can be implemented into business and economics curriculum. Social implications Kleptocracy and foreign corruption are important problems, and creative solutions are desperately needed. Originality/value The paper shows how understanding and combatting kleptocracy and foreign corruption can be considered an interdisciplinary activity, touching on fields including technology, economics, business, ethics, education, law, policy, statistics and research methods.

Bombardier's Delta CSeries deal may trigger a WTO case

2016 ◽  
Keyword(s):  
Cash Flow ◽  
Flow Problem ◽  
Significant Source ◽  
Lost Sales ◽  
Content Type ◽  
Aerospace Sector ◽  
The Us

Significance Bombardier -- one of the top four global aircraft manufacturers and a significant source of employment in Canada and abroad -- is currently seeking a federal bailout to alleviate a significant negative cash flow problem posed in no small part by its CSeries narrow-body airliner. Impacts Airbus and Boeing could face competition in narrow-body airliners should the CSeries establish itself on the market. However, there are few threats to Airbus and Boeing's overall positions at the top of the global aerospace sector. Politically motivated constraints on the US Export-Import Bank may benefit Bombardier via lost sales for Boeing abroad.

Bend it like FIFA: corruption on and off the pitch

2016 ◽  
Vol 42 (9) ◽  
pp. 866-878 ◽  
Author(s):  
Christopher John Boudreaux ◽  
Gokhan Karahan ◽  
Morris Coats
Keyword(s):  
Design Methodology ◽  
Ethics Committee ◽  
Historical Narrative ◽  
Sports Management ◽  
Department Of Justice ◽  
Content Type ◽  
Economics Literature ◽  
The Us ◽  
The Future ◽  
The Subject

Purpose The purpose of this paper is to discuss the institutional background and the incentive for FIFA executives to engage in corrupt activities. The authors also highlight recent FIFA scandals and discuss approaches that may affect FIFA’s corruption in the future. Design/methodology/approach The authors approach this subject through a historical narrative. The authors review the literature on corruption and apply these findings to the FIFA organization. Due to many similarities, the authors are able to juxtapose the successes and failures of the Olympics, and apply these findings to FIFA. Findings Based on the examination, the authors find that FIFA’s corruption can be mitigated, but it is a very difficult task to accomplish. The US Department of Justice has helped to jump start a corruption reform in FIFA. This has also facilitated the activities of the FIFA ethics committee. However, only time will tell whether these changes will be meaningful and last. Originality/value The contribution is that the authors closely link the sports management and economics literature on corruption using FIFA as the subject of analysis. Because of the recent FIFA scandal, the authors are able to update the corruption literature as it applies to this organization and, more generally, in sports.

CFTC enters the market for anti-corruption enforcement

2019 ◽  
Vol 20 (3) ◽  
pp. 32-38
Author(s):  
Alice S. Fisher ◽  
Douglas K. Yatter ◽  
Douglas N. Greenburg ◽  
William R. Baker III ◽  
Benjamin A. Dozier ◽  
...  
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Department Of Justice ◽  
Futures Trading ◽  
Voluntary Reporting ◽  
Content Type ◽  
The Us ◽  
Complex Landscape ◽  
Commodity Futures Trading Commission ◽  
And Training

Purpose This paper aims to analyze the March 6, 2019 enforcement advisory in which the Division of Enforcement (Division) of the US Commodity Futures Trading Commission (CFTC or Commission) announced that it will work alongside the US Department of Justice (DOJ) and other agencies to investigate foreign bribery and corruption relating to commodities markets. Design/methodology/approach This paper explains the enforcement advisory and outlines key considerations for industry participants and their compliance teams, including the CFTC’s plan to investigate in parallel with other enforcement authorities, an expansion of the CFTC’s existing self-reporting, cooperation and remediation policy to address foreign corruption and the CFTC’s focus on market and economic integrity, and provides guidelines for commodities companies concerning anti-corruption compliance and training programs, investigating potential incidents of bribery and corruption, reporting obligations under the Commodity Exchange Act (CEA) and CFTC regulations, voluntary reporting of incidents of foreign corruption and whistleblowing. Findings The CFTC announcement adds a new dimension to an already crowded and complex landscape for anti-corruption enforcement. A range of industries, including energy, agriculture, metals, financial services, cryptocurrencies and beyond, must now consider the CFTC and the CEA when assessing global compliance and enforcement risks relating to bribery and corruption. Originality/value Expert guidance from lawyers with broad experience in white collar defense, investigations, financial services, securities, commodities, energy and derivatives.

International anti-corruption capacity is improving

2018 ◽  
Keyword(s):  
Money Laundering ◽  
Market Value ◽  
Department Of Justice ◽  
Content Type ◽  
The Us ◽  
Global Coordination ◽  
Multiple Jurisdictions

Subject Anti-corruption outlook. Significance Shares of the world’s largest commodities trader Glencore crashed last week after the US Department of Justice (DoJ) issued it with a subpoena relating to compliance with anti-money laundering and anti-bribery laws. The firm lost 5 billion dollars’ worth of market value in the immediate aftermath. Impacts Facing probes in multiple jurisdictions, Glencore’s shares are unlikely to recover any time soon. Global coordination on transnational corruption is likely to improve in coming years. The crackdown on offshore havens will create wider geopolitical problems, especially for London.

Honduras drug claims compound COVID-19 concerns

2020 ◽  
Keyword(s):  
Private Investment ◽  
Police Chief ◽  
Department Of Justice ◽  
Content Type ◽  
The Us ◽  
Foreign Private Investment ◽  
Illegal Activities ◽  
Contagion Risk ◽  
High Level ◽  
Second Wave

Subject Corruption claims and COVID-19. Significance The US Department of Justice (DOJ) on April 30 charged Honduras’s former police chief Juan Carlos Bonilla Valladares with drug conspiracy and weapons offences. A statement on the charges notes allegations that the illegal activities were carried out on behalf of President Juan Orlando Hernandez and his brother, Juan Antonio. Long-running allegations are fuelling popular distrust of the Hernandez administration, particularly in the context of mounting concerns over corruption related to the COVID-19 pandemic. Impacts US aid and financing to Honduras will continue as long as no US criminal investigations are launched into Hernandez himself. Honduras’s support for US migrant deportations may ensure that no such investigations begin while Hernandez is in office. Frequent scandals will deter foreign private investment until serious efforts are made to root out high-level corruption. Any large protests that might take place as lockdown eases would pose a COVID-19 contagion risk, increasing the chances of a second wave.

Liquidity creation or de‐creation: evidence from US property and liability insurance industry

2013 ◽  
Vol 39 (10) ◽  
pp. 938-962 ◽  
Author(s):  
Byeongyong Paul Choi ◽  
Jin Park ◽  
Chia‐Ling Ho
Keyword(s):  
Insurance Industry ◽  
Content Type ◽  
Factors Affecting ◽  
Depository Institutions ◽  
Time Period ◽  
The Us ◽  
Financial Characteristics ◽  
Property And Liability Insurance ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is two‐fold. The first purpose is to properly measure the level of US property and liability (P/L) insurers liquidity creation, applying the liquidity creation measure developed by Berger and Bouwman. The second purpose is to identify factors affecting P/L insurers' liquidity creation using a regression. Particularly, this paper tests two competing hypotheses regarding the relationship between the level of capital and liquidity creation.Design/methodology/approachThe paper calculates liquidity creation for the US P/L insurers. First, the paper categorizes all items in assets, liabilities and surplus into liquid, semi‐liquid, or illiquid. This process is based on the ease, cost, and time for insurers to meet their contractual obligation to obtain liquid funds or to pay off their liability. The paper also constructs the regression model to test the impact of insurers' surplus level on liquidity creation while controlling for the firm‐specific variables. The paper examines this relationship for the time period between 1998 and 2007.FindingsContrary to the study of depository institutions, the paper reports that P/L insurers are liquidity destroyers than liquidity creators. This paper also provides that liquidity destruction varies over time and differs among insurers in different size. The total amount of liquidity destruction ranges from 47 to 58 percent of insurer total asset. In addition, the results of a regression show that insurer capital is negatively related to the level of liquidity creation. This provides implications that insurers with lower level of capital face more regulatory requirements and are forced to meet liquidity demand more.Practical implicationsThe level of liquidity creation and the trend of liquidity creation of P/L insurers are of particular interest to regulators and consumers because the level of liquidity creation as shown during the financial crisis has a significant adverse impact on the financial intermediaries.Originality/valueThe paper do not aware of any study that attempts to measure liquidity creation by insurers and its relationship with both organizational and financial characteristics. The paper reports that P/L insurers are, unlike depository institutions, liquidity destroyers. Whether or not P/L insurers create/destroy liquidity is an interesting economic question to shed light on the roles of P/L insurers as a financial intermediary.

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