How to Finance Risks to Your Business and Operations Effectively through the use of Capital Market, Insurance & ART Techniques

Synopsis

This workshop provides a detailed understanding on the wide range and types of losses an organization is exposed to (such as a major fire, a change of regulation, a chemical spillage, the entry of a new competitor, an explosion or a fraud committed by a senior manager) and the potential financial impacts of those losses. Participants will learn the Key Risk Financing Techniques to Protect your Tangible and Intangible Assets. Intangible assets include intellectual property, product brands and corporate reputation. How and when to select and apply the right risk financing Techniques and how to analyze carefully the pros and cons associated with the financing techniques of transfer, retention, insurance ART.

In summary, the workshop will guide you through a wide range of risk financing strategies, explains how they work, and suggests when they are most appropriate in wide range of specific scenarios.

Learning Objectives

After attending this session, you should be able to:

• Understand the role and importance of Risk Financing in the overall context of the management of Risk in an organization i.e. paying for losses, liquidity management, compliance requirements, uncertainty management, etc.
• Understanding the concept of acceptable risk / risk tolerance both terms of perception and financial capability.
• How and when to use insurance, captives, bonds and other alternative risk transfer mechanisms
• Analyzing the impact of risks, crises and losses on your organization’s balance sheet, Profit and Loss, and cash flows and how loss characteristics affect risk financing techniques selection
• Learn effective methods of risk financing to ensure the firm is able to bear the financial consequences of loss events
• How in addition, to increase performance by optimizing the risk/return balance with proper capital allocation and risk financing

Workshop Outline

• Analyse the risk profile of your Organization to establish the risk treatment strategy
• Develop risk financing strategic options for risk management
• Introduction to Insurance
• Overview of Reinsurance Mechanisms
• The rise of Captive Insurance
• Customised Solutions with ART & Capital Markets

Tool Box: A Case Study

• Catalogue of Risk Retention & Transfer Techniques
• Insurance Guide
• ART Guide
• Checklists, how-to procedures/reminders and templates

Testimonials

“Very good and practical overview of the diferent risk financing techniques that can be used. I especially liked the part on the finite mechanisms. I have a few ideas that could be very useful for my organization”. General Manager, Risk Management, Healthcare Group