Removing the worry of financial impairment enables businesses to more freely pursue their economic interests. As your advisor, we work with you to identify and measure risk. We develop and implement a plan that balances the cost of insurance with the need to protect assets and income.
Risk management is not a 50-page report
To us, risk management is a dynamic process that requires ongoing client engagement and diligent execution. We can bring ideas and solutions, but they are only effective if we carefully listen to you. Identification and evaluation of exposures are the first steps in the risk management process.
What are your risks?
While perhaps a bit cliché, the business world is indeed changing at a faster pace now more than ever. Companies are expanding into new services, new markets, and deploying new technologies. An insurance and risk management approach that may have worked well a few years ago might very well have new and emerging gaps in coverage.
The Fedeli Group risk management team follows a thorough discovery process that includes:
- Listening to you about your business goals, challenges, and expectations
- Onsite location visits to obtain an “on the ground” view of operations
- Detailed review of insurance policies
- An assessment of existing loss control strategies
Finding the right balance between cost and risk transfer
A sound risk transfer strategy requires a thorough understanding of business needs on a current and prospective basis. The Fedeli Group applies both qualitative and quantitative approaches so that you can implement a well-informed risk transfer plan. Determining a risk transfer plan requires:
- Statistical analysis of historical losses and exposures
- Working with an advisor who can bring perspective and insight to your industry
- Program benchmarking specific to your industry
- A risk tolerance assessment
Ultimately, the amount of coverage purchased, how coverage is purchased, and the degree to which internal risk management processes are employed will reflect risk tolerance, financial ability, and the regulatory requirements of your industry.
Has your view of risk changed?
The decision to accept or transfer risk should be evaluated on a regular basis. Risk is not static. Businesses change, technology evolves, and economic conditions fluctuate. Depending on the nature of your organization, the approach to risk management strategies will vary. But all companies, non-profits, and public sector organizations need to be keenly aware of the risks they face and be willing to look beyond conventional wisdom. Questions you should ask include:
- Am I more or less risk tolerant than five years ago?
- Can I afford higher retentions?
- Can I assume more risk?
Transferring or accepting risk
Once comfortable with knowing your risks and understanding your risk tolerance, program design becomes less of a mystery. At that point, a risk management program can be designed and implemented with confidence. Your program may include:
- A range of fully insured and self-insured arrangements, depending on the exposure
- Different financing options, including collateral
- Captive arrangements
- A revised loss control plan
- Re-establishing vendor agreement arrangements
Risk management needs are dynamic
Coverage needs and insurance products to support these needs are more dynamic than they may first appear. As your advisor, we will help you monitor trends and events that impact your risk management program in the present while at the same time looking to the future.
As technology evolves, government regulations are written, and insurance industry practices change a risk management program can develop gaps that can be easily overlooked. Some examples include:
- Technology – impact of new processes, new materials, scientific research
- Government regulations – individual country requirements and cyber security disclosures
- Insurance industry practices – policy exclusions that were once covered