Showing posts with label risks. Show all posts
Showing posts with label risks. Show all posts

Wednesday, December 14, 2011

Scientific Standards for Studies on Modified Risk Tobacco Products

Dec. 14, 2011.WASHINGTON. A new Institute of Medicine report specifies the types of research that the Food and Drug Administration should require before allowing tobacco companies to sell or advertise ‘modified risk’ tobacco products as being capable of reducing the health risks of tobacco use.  While modified risk tobacco products could be one part of a comprehensive strategy to lower tobacco-related death and disease in the U.S., especially among tobacco users who are unable or unwilling to quit entirely, little is currently known about the products’ health effects and whether they pose less risk than traditional tobacco products. Examples of modified risk tobacco products may include e-cigarettes and tobacco lozenges.

Companies and other sponsors developing modified risk tobacco products should consider using FDA-approved independent third parties to oversee health and safety research on their products, adds the report, which was completed to fulfill a congressional mandate. Independent oversight would ensure that the data submitted to FDA are reliable and credible, and it could help re-engage the mainstream scientific community in research.  Because of the tobacco industry’s well-documented history of improper conduct, many institutions and scientists currently refuse to conduct or publish research supported by the tobacco industry.
“Right now there’s a shortage of scientific evidence on the health effects of modified risk tobacco products, and the tobacco industry currently lacks the trustworthiness, expertise, and infrastructure to produce it,” said Jane Henney, chair of the committee that wrote the report, and professor of medicine and public health sciences at the University of Cincinnati.  “Having trusted third parties oversee the conduct of research could help re-engage scientists and enable generation of credible research data on the health effects of these products.”

The Family Smoking Prevention and Tobacco Control Act of 2009 requires that modified-risk tobacco products undergo a pre-market approval process similar to drugs and devices.  According to the act, a company that wants to market a lower risk tobacco product in the U.S. must offer scientific proof to FDA that the marketing of the product will not only reduce harm to individual users, but also benefit the health of the population as a whole.  The act also directed FDA to consult with IOM on how scientific studies of modified risk tobacco products should be designed and conducted.

The IOM’s report says that the studies should examine all of the areas needed to forecast and monitor a proposed product’s impact on public health, including its composition and addiction potential; the amount of human exposure to harmful components; perceptions about the product’s effects and likelihood of addiction; and effects on human health.  Studies should be generalizable to the whole population and should also include populations of special relevance, including current and former smokers, beginning smokers, adolescents, and populations at high risk for tobacco use.

While studies submitted to FDA to demonstrate products’ safety are usually conducted or sponsored by the companies themselves, the tobacco industry at present lacks the capacity and expertise to conduct such research, the report says.  The industry’s history of improper manipulation of data undermined the credibility of its research and left it isolated from the mainstream scientific community.  Many major universities have policies against acceptance of tobacco funding, for example, and many high-impact scientific and medical journals will not accept manuscripts supported by the tobacco industry.

Using independent, FDA-approved third parties to conduct, provide oversight of, and distribute funding for research could distance the influence and reputation of the tobacco industry from the scientists who are researching their products.  Examples of third-party partnerships between industry and government include the Health Effects Institute and the Reagan-Udall Foundation. No similar organization currently exists for the tobacco industry.

Making data publicly available will also build public trust and will allow for independent analysis of data and methods, the report says.  FDA should require sponsors of modified risk tobacco products to place all data generated during a product’s development and marketing in a public repository selected by the agency.  

FDA should also require that studies offered in support of an application to market modified risk tobacco products conform to established standards of good research governance, including appropriately qualified investigators, transparency, independent institutional review board or ethical review, and adherence to federal regulations that ensure the protection of human participants in biomedical research.

The study was sponsored by the Food and Drug Administration.  Established in 1970 under the charter of the National Academy of Sciences, the Institute of Medicine provides independent, objective, evidence-based advice to policymakers, health professionals, the private sector, and the public.  The National Academy of Sciences, National Academy of Engineering, Institute of Medicine, and National Research Council make up the National Academies. 


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Tuesday, November 29, 2011

The Multilateral Aspects of Policies Affecting Capital Flows

The crisis is prompting a reconsideration of capital flows and the policies that affect them. A breakdown in the domestic stability of a large country can spill over into stress in other countries and even to the global system as a whole. The activities of global institutions and markets—some regulated and some not—can bear on the riskiness of flows. Thus, national policies affecting capital flows can transmit multilaterally.

This transmission has not been fully appreciated by national policymakers. Further, they may not have incentives to take full account of the cross-border effects of their policies. Looking ahead, the upward trend in the volume of capital flows can be expected to continue, making it ever more important to address the associated cross-border risks.

This paper aims to draw greater attention to the multilateral aspects of policies affecting capital flows. Previous work by the Fund has focused on the policies of recipient countries, mainly emerging market economies (EMEs), and addressed the circumstances in which capital flow management measures (CFMs) would be appropriate.

This paper provides a complementary assessment of regulatory and supervisory policies of advanced economies, as well as large advanced economy monetary policy. Moreover, it addresses the multilateral transmission of CFMs.

IMF.October 13, 2011.Policy Paper


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Friday, November 25, 2011

IFC Risk Certification Program Helps Boost Financial Sustainability in Central Asia

worldbank.Tashkent, Uzbekistan, November 25, 2011—IFC, a member of the World Bank Group, is providing financial risk-management training to institutions in Azerbaijan, the Kyrgyz Republic, Tajikistan, and Uzbekistan, helping them reduce their risk of losses.
As part of the first round of the Risk Certification Program implementation, IFC conducted review classes on the fundamentals of financial risk on November 17-24 in Tashkent. The review classes focus on risk-management methodologies, governance structures for the management of risk in financial institutions, and an overview of globally accepted standards and concepts in these areas.
The program is organized in partnership with the Global Association of Risk Professionals, a globally recognized leader in financial-risk testing and certification programs, and educational and training activities.
Representatives of the Central Bank of the Republic of Uzbekistan and local training partners (Regional Baking Training Center and Federation of Accountants, Auditors and Consultants of Uzbekistan) joined the classes and passed GARP’s certification exam in Tashkent. Local training partners will further train staff of local banks and financial institutions during the second phase of the program. The review classes were held in Azerbaijan in September and in the Kyrgyz Republic and Tajikistan in October.
“Risk management is important aspect of stability of the banking system”, said Jahongir Abdurasulov, Deputy Director of Department of licensing and coordination of credit organizations’ activity at the Central Bank of the Republic of Uzbekistan. ”The banks are looking for good risk-management practices and are trying to test various methods. IFC’s Risk Certification Program, the first in the region, provides a unique opportunity to improve my knowledge of risk management from an international perspective.”
This training initiative is part of the IFC Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project, and the IFC Financial Markets Crisis Management Project, which are funded by Austria, Finland, the Netherlands, and Switzerland.
“IFC’s Risk Certification Program provides local banks and microfinance institutions access to globally acknowledged financial risk-management concepts and standards,” said Rolf Behrndt, IFC Regional Business Line Manager. “We hope as many bank and microfinance organization employees as possible will take these opportunities to expand their knowledge of financial risk management and earn certificates from the Global Association of Risk Professionals.”
IFC aims to strengthen financial markets in the region by strengthening credit information systems and risk-management practices and education, as well as by facilitating the resolution of distressed loans.

Available in: Uzbek, русский
About IFCIFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org
About GARPThe Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better informed risk decisions. Membership represents nearly 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries. GARP administers the Financial Risk Manager (FRM®) and the Energy Risk Professional (ERP®) exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels. www.garp.org.
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Tuesday, November 8, 2011

Weather Index-based Insurance in agricultural development: a technical guide

The International Fund for Agricultural Development (IFAD) and the World Food Programme (WFP) will release a technical guide titled ‘Weather Index-based Insurance in Agricultural Development: A Technical Guide" for practitioners to help manage weather risks.

“Rural poor people in developing countries are vulnerable to a range of risks and constraints that impede their socio-economic development” said Kevin Cleaver, IFAD’s Associate Vice President. “Weather risk, in particular, is pervasive in agriculture. “This technical guide discusses weather index-based insurance, a class of insurance products that can allow weather-related risk to be insured in developing countries where traditional agricultural insurance may not always be feasible” he added.

Weather index-based insuranceresponds to an objective parameter, such as rainfall or temperature, at a defined weather station during an agreed period of time. The parameters of the insurance contract are set to correlate as closely as possible with the damages suffered by the farmer. All policyholders within the same area receive payouts based on rainfall measurements at the weather station close to their farms, eliminating the need for expensive, time-consuming loss assessments in the field.

IFAD has been working on index insurance as part of its commitment to reduce the vulnerabilities of poor rural smallholders and open their access to a range of financial services with a view to improving their livelihoods. Launched in 2008 with the support of the Bill and Melinda Gates Foundation, IFAD joined forces with the WFP to launch the Weather Risk Management Facility (WRMF).

The technical guide comes just prior to the 7th International Microinsurance Conference to be held in Rio de Janeiro, Brazil 8- 10 November. Hosted by the Munich Re Foundation and the Microinsurance Network, conference is critically important for international experts from insurance and reinsurance companies, international organisations, NGOs, development-aid agencies, academics, policymakers, regulators and supervisors. Over 400 experts from more than 50 countries aim to exchange experiences and discuss the challenges and opportunities of microinsurance.

This year, amongst other issues, the conference participants will discuss how microinsurance can be more effectively delivered to low-income households, and how public-private-partnerships can be mobilized to deliver effective microinsurance products against weather shocks such as drought.
The guide focuses on WII and translates the findings and experience of the WRMF to date into practical decision-making steps for donors and practitioners. It covers each phase of the WII project design and management process. The guide also shows how WII operates best as part of an integrated approach to risk management, when constraints such as lack of access to finance, improved seed, inputs and markets can be simultaneously addressed.

“While not a panacea for poverty, nor the sole solution for at-risk producers, WII shows great promise as a tool to reduce the severe effects of weather related shocks on people who depend on agricultural production for their livelihoods” said Cleaver.

Notes to editors
Nearly 1.4 billion people live on less than US$1.25 a day. Seventy per cent live in rural areas where they depend on agriculture, but where they are also at risk from recurrent natural disasters such as drought and flooding. Natural disasters have a devastating impact on the food security and overall social and economic development of poor rural households.

Unless well managed, weather risks in agriculture slow development and hinder poverty reduction, ultimately resulting in humanitarian crises. Poor farmers have few options for coping with significant losses, and in order to reduce their exposure to risk, they often forgo opportunities to increase their productivity. When a crisis does strike, farmers often respond by withdrawing their children from school, selling productive assets or migrating. Extreme weather shocks can make rural populations more vulnerable to increasing food prices and decreasing job opportunities – in addition to losing their own agricultural production.

Press release No.: IFAD/79/2011

  • Weather Index-based Insurance in agricultural development: a technical guide
  • Managing weather risk for agricultural development and disaster risk reduction