American International Group

Introduction

With revenues of $ 62,402,000,000 in 2001, the American International Group Incorporation (AIG) was the world's leading insurance and financial services company. Underwriter1 was the largest commercial and industrial insurance, life insurance and the second largest in the U.S.

The company reported a net profit of 7.67 billion and had assets of 492.98 billion U.S. dollars in 2001. AIG was ranked 12 on Fortune magazine's list of the 500 largest U.S. companies based on revenue in 2002. The company ranked second in the Insurance (property and casualty) 'section of the Fortune survey of "Most Admired Companies in America. Founded in 1921, AIG shares are traded on the New York Stock Exchange ( NYSE) and the London, Paris, Switzerland and Tokyo (Shelp¸23).

Discussion and Analysis

AIG established a long-term plan designed to maximize the value of AIG's businesses for the benefit of all concerned. While hoping that this process will take several years, AIG believes that the breakdown between business and the problems in the holding company will benefit stakeholders - including taxpayers - AIG, to allow creation of stronger, more focused and valuable business.

As American International Group Inc. is close to becoming an independent company again, is making changes in internal risk management to ensure that one can stay.

Over the past year, the government-controlled insurer has been working to correct deficiencies in its risk management and monitoring that have played a key role in its near collapse in 2008. Since his rescue, AIG has hired some new risk agents, and its top executives are trying to achieve a cultural shift in how employees feel about the risk and growth within the giant organization (Shelp, 66).

The effort, led by Chief Executive Robert Benmosche and executive vice president Peter Hancock, involve making more managers in all operating divisions of both business decisions and risks taken by each unit of AIG, and how they affect the company whole.

Managers of business units now go to monthly monitoring business to learn about what their colleagues in other divisions are doing, and each unit has significant risk that officers report directly to senior executives of AIG. Before the financial crisis, only a small number of senior corporate executives at AIG were able to see the risks throughout the company, executives have said (Shelp¸37).

For a place so big ... we need a greater number of senior leaders who are thinking about everything and a culture where there is a ...