International Logistics Management

In recent years, industry competitiveness and globalization have caused many corporate enterprises to increase the level of involvement they maintain with regards to the relationships forged with consumers and their suppliers via supply chain management. Developments in information and communication technology, coupled with the ever-increasing ability to mine data sets and analyze market analytics, have created an international business environment that is largely interdependent on the cooperation and coordination of several departments within a corporation. The ability of nationwide retailers to compete with other businesses within their industry will likely need to innovate and cut costs if these changes to the corporate structure are to continue, lest they invoke operational failure or deficiency due to mismanagement. Fisheries must also operate in a similar manner, and risk diversity and insurance within a fishery supply chain are becoming increasingly difficult, specifically due to lack of analytics and information with regards to the insurance signatories. Whereas fisheries must currently conduct risk assessments with the information supplied by the insurance signatory, a more efficient style of operation management would be to simply gather data on the various risks and begin conducting internal assessments based on the gathered data. This way, the asymmetrical risk assessment posed by having the risk data divulged by the insurance signatory becomes a simple check against the pre-calculated risk assessment, decreasing the likelihood that any fishery will create a liability for itself.

Within the framework of a policy that would afford completely refunded damages, a fishery supply chain insurance premium for each contract signatory would be entirely equal to its expected loss. Because the fishery supply chain insurer and the insurance signatory are independent entities, they are only concerned with the benefits afforded them from a given policy, with no regard for the other party. Due to the inexact probabilities collected for the purposes of this study, the parameters of the insurance contract of the fishery supply chain were divulged from the information supplied by the insurance contract of the fishery supply chain.