Refer to the article "Terrorism is now a key business risk and too many companies are insufficiently prepared" concerning Terrorism on BB under Public Policy Issues.
a. From the perspective of companies, what risk financing options should they choose for catastrophic risk such as terrorism? Identify the characteristics of terrorism risk as discussed in the article.
b. From the perspective of insurers, how these characteristics you mentioned in part (a) conform or violate the requirements of insurable risk.