Addressing Risk Mitigation

Objective: To provide a holistic overview of the clients business, identifying risk, consequences and possible solutions.

Situation: Spearheaded numerous discussion with all stakeholders perceived risk – being implicit and explicit  – associated with the company, the industry and outside parties.  Review of insurance  policies in place, with the sole intent of informing management of the Risk, any GAPs , the consequences of potential shortfalls and allowing the Executive Team to make informed decisions – Risk Mitigation

FINDINGS: As expected, (there always is) new risks identified. One needs to calculate the companies palette for self-insurance and also out of pocket deductaables. 

Solution: Reviewed insurance policies in place, identified two gaps (i) there was no business interruption insurance (ii) their current broker was not providing a holistic solution. A new broker was identified, coverage was in-sync with risk. Nine months later, a fire occurred, bring production to a grinding halt, for twelve consecutive months. Without the business interruption insurance, the client would never have had to file for bankruptcy, due to inability to carry the fiscal burden.