Internationalisation is not a recent buzzword. Internationalisation paved the way for the beginnings of the insurance industry

Risks emanating from international trade is one of the insurance industry’s most difficult challenges and one that affects all classes of business

The great containers' port which act as warehouse to goods worth ten billions

Outsourcing of production sites to low-wages countries doesn't just reduce costs. It may also reduce the quality of the goods produced. Defective products can result in recall costs or even product liability costs.

Liability losses can reach extreme proportions when pharmaceutical products cause dangerous side effects in patients.

Insurance companies that cover such a large risks need a secondary market where they can place them. reinsurers assume these functions.
Sharing load among several carriers helps to spread risks. Diversification effects achieved by spreading risks across different regions and classes of business allows reinsurers to balance their portfolios and realise a level of capital efficiency that enables them to cover their clients' risks at a reasonable price.

The insurance of large and accumulated risks is a definite advantage for the sustainable development of economies. Insurance isn't far advanced - vulnerable economies. The inhabitants have to bear brunt of these loses. Insurance density in the regions affected is still low - insurance cover a small % of losses (for ex, tsunami)

Countries with undeveloped system of insurance suffer more from catastrophes than those where risk carriers may cover material losses.

The global economy is becoming more networked and interconnected, risks are becoming more complex, therefore the insurance industry has to develop in order to meet their clients' need for risk cover in changed environment. .

All business is built on risk. Operating in politically unstable countries is one of the most extreme examples of this (kidnapping, confiscation of assets, fraud and corruption). But returns could be very high ---> trade-off

Industrial espionage has existed for a long time. But now it can be carried out at a distance by gaining access to computer networks. IT security specialists protect company's systems with firewalls.

Business is inherently risky. Venture capitalists spread their risk ---> payback from the 1 or 2 successful ventures will more than compensate for the money lost in the failures.

Well-established companies can also easily start to go wrong. The risk is of losing magic ingredients, competitive advantage that made for success. Some companies don't understand what to do to reinvent, survive and thrive again, unable to transform themselves. Former strengths - weakness and obstacles ---> company's shares fall in value. Sometimes go bankrupt.

Risk of management complacency. (Toyota). Production faults can put company at risk through product liability claims. Products recalls are the worst possible publicity imaginable for companies, their image will never recover. Reputational risk: customers' trust can be lost overnight ---> brand suicide.

No matter how accurately a businessman anticipates the imminent changes in the market, it is impossible to predict exactly what will happen in the future. An entrepreneur must weigh up all changes, prioritise and modernise his business and keep up with the time. It is necessary to know all info about risks to complete this task. The only successful business will be one that accepts uncertainty and is flexible enough to respond to change as it comes. --> bold new solution for risk management. Watchman - impressive software accepts a variety of inputs and produces 3-dimensional graphic display that allows you to view various risk factors at a glance according the timeline. --> determine the importance of each risk factor, evaluate potential impact. Watchman can't replace skilled experienced risk manager,

As soon as directors become aware of administration situation, they need to act carefully and quickly to avoid the business trading insolvently, as the penalties for doing this can be severe. These "remedies" may include personal liability for creditors' debts, disqualification as a company director and in extreme cases imprisonment where fraudulent trading has taken place.

How to protect the company and yourself from such risks if insolvency is possibly imminent? The principal steps include fulfilling the normal duties expected of a company director, which are set out in the constitution of the company. 1) directors must understand the company's current financial situation, assess the prospects for its future viability and act quickly. They should use up-to-date management accounts and forecasts based on the company's latest order book. 2) if the directors decide that their company is moving towards an insolvency position, they need to take independent professional advice from a licensed insolvency specialist. 3) they need to ensure that the assets of the company are always protected and secure and not sold for less than their value. In addition, directors must show that they are acting in the best interests of all of the company's existing creditors to avoid any accusation. 4) directors should hold regular meetings and keep key decisions they make. If there is any doubt about this, they should detail the circumstances that justify continued trading. If they are convinced that the business will be able to ride out the storm then the company can continue in the normal way.

If a person or a business has more debts than money to pay them, this mean they have more liabilities than assets, and they are insolvent. If a creditor takes the matter to court, the person or company is declared bankrupt. A bankrupt company goes into liquidation or receivership or is wound up. The court appoints a liquidator (or receiver, or administrator) who realises the company's assets in order to repay creditors. A failing business can choose voluntary winding up. In American a corporation in difficulty can file for Chapter Eleven and propose recovery plan; it is then temporarily protected from its creditors, and given some time to attempt to solve its problems. A failing business that knows it has no reasonable chance of avoiding bankruptcy should stop trading. Continuing to do business, and building up debts with creditors that will never be paid, is called wrongful trading and is illegal. There are limits to limited liabilities!

Business has always been plagued by fraud. Some frauds are committed by people at the top. Others are committed by hired-hands lower down the organisation. But all frauds involve abusing people’s trust and diverting corporate resources for personal ends. Fraud can never be eliminated. Directors and executives can, however, treat it like any other unavoidable risk, and manage it professionally. The risk is high at the moment. At the same time the punishment is harsher than ever. Companies nowadays run the risk of being held liable for their employees' misbehaviour unless they can show they had done their best to prevent it. Directors who play even the smallest role in frauds can now go to prison. Companies infected by fraud can incur all sorts of other costs. Their licences to trade may be withdrawn, they may be barred from bidding for government work and they may be subjected to online campaigns urging customers to boycott them. What can companies do to uncover internal scams? 1 answer is to look for the telltale signs. Some of the biggest corporate tricksters were people whose flamboyant personalities often raised suspicions. A second answer is to put procedures in place to detect frauds. The Sarbanes-Oxley law passed in America requires the boards of public companies to commission independent audits. Many companies install cyber-security tools to monitor employees’ e-mails and internal accounting systems. But fraudsters are often quicker at harnessing technology than companies. Those running scams may also be skilled at tricking colleagues into giving them passwords—a technique Edward Snowden may have exploited. The most powerful weapon against fraud is a whistleblower.

1) Dress, punctuality and formality. Man tend to wear conservative clothes while women wear fashionable clothes. Use first and family name. Regarding punctuality and meeting deadlines, they tend to be more relaxes than in some other countries. If u want to see an official, u can just drop in during working hours. Business cards are very important - status position. should be in rus and eng.

2) Decision-making in the workplace. The boss is a key decision-maker. Hierarchy, senior people are shown great respect.

3) Qualities of a supervisor. knowledgeable, leader, approachable. If u are approachable, local staff is more likely to share their ideas with u. 2 types of managers respected by local staff: 1. decisive and gives clear leadership, 2. people-oriented.

4) Relationship building. Good relationship is important. Need to get trust at the beginning. Bear in your mind crucial things for Kazakhstani: family, children, friends. shaking hands, eye-contact. Touching is not acceptable in formal situations.

5) Socialising. evening after deal, a lot of food, drinks, make toasts.

opportunities for investment, big country, population, rich in natural resources.

The creative industries have become a key part of the economic development of many nations, with a lively debate about creative industries and the rise of a creative economy. The term ‘creative industries’ had its origins in the UK. The European Union has recently combined its media and cultural programmes into a ‘Creative Europe’ strategy that aims to safeguard and promote cultural and linguistic diversity and strengthen the competitiveness of its cultural and creative sectors. Many of the strategies to develop the creative industries have been national in their scope, but one limitation of national creative industries strategies is that they can only develop cultural policies within the nation-state, whereas media and cultural production is becoming increasingly international in its scope.

Definitional debates. 1- supporting the arts and culture coached in economic language, 2- convergence of the arts, media, design and ICT sectors, 3- associate it with the tsunami of cultural democratisation associated with networked social media and DIY online publishing. 4- reject the terminology altogether, seeing culture and economy as basically incompatible.

UNCTAD: creation production, distribution of goods and services that use creativity, intellectual capital as primary inputs; set of knowledge-based activities, focused on arts; generating revenues from trade and intellectual property rights; crossroads among the artistic, services and industrial sectors. UNCTAD identified nine sectors connected with arts, media and design, heritage and functional creations (software, games, advertising, architecture, creative services).

5-8% -advanced, 2-4% -developing. tend to cluster in leading cities.

Reasons for growth of CI: 1. international trade in cultural goods and services have been growing at a faster rate than overall international trade, and digital technologies and the global internet are important drivers of this growth. 2. cultural consumption is positively correlated with economic development. 3. as developing nations experience economic growth their citizens devote a larger share of their total income to cultural goods and services.

A focus on culture and creativity is seen as potentially enabling a more human centred development that achieves both economic goals of job creation, innovation and export growth while also contributing to social inclusion, cultural diversity and environmentally sustainable growth. One factor that makes creative economy strategies particularly appealing is that they can draw on human capacities and small-scale initiatives, rather than being reliant on large-scale capital investment.By drawing on local cultural practices rather than needing to bring in expertise from the outside, creative industries strategies can maintain cultural diversity and promote cultural sustainability. The global access to global cultural products presents the significant risk that cultural production in smaller developing nations will be overwhelmed by the products of the global media and entertainment industries, which can take advantage of scale economies in production and global reach in distribution.

Policies that could promote the creative economy in developing countries include: 1. Investment in education and human capital, with reference to the intersection between creative capacities and relevant technical skills 2. Provision of improved digital infrastructure and access to high-speed broadband networks and ICTs 3. Strategies for cultural asset management and community cultural development 4. Innovations in financing small businesses in the creative industries, and enabling better access to micro-finance 5. Establishment of creative clusters that can be gathering points that bring together those engaged in both the formal and non-formal sectors of the creative industries 6. Approach to cultural policy that recognises links to education, trade and industry policies, and the roles of local, regional and national governments 7. Advances in data gathering in order to better understand the size, significance and linkages arising in national creative industries. There is a need to capture the role played by the informal sector in order to promote better understanding on the part of policymakers.

Creative economy in developing nations has been strongly linked to the informal economy. The Nigerian film industry, known as Nollywood, is illustrative. Locally made films sold in street markets and viewed in shops, bars, hairdressers, and by informal video clubs. Very few of these films are sold through mainstream distribution networks, and copying and piracy are widespread. Copyright laws and intellectual property rights (IPRs) is viewed with some suspicion in developing countries as exploiting consumers in the developing world by charging excessive prices for cultural products. Piracy is seen, not as theft, but as street-level entrepreneurship in the informal economy, and as resistance to transnational media and entertainment conglomerates. Widespread content piracy in developing countries has its major impacts, not on global media conglomerates, but on local creative producers, as it promotes a culture where not paying for works appears to be the norm. Piracy subverts development of sustainable local creative industries. Producers need to make bigger-budget films to maintain their audiences and attract new ones, but it doesn't pay off. This problem exist not only in Nigeria, but in other developing nations.