SPECIAL PROJECTS

Special Projects

Risk Management provides valuable contributions to many areas of organizational function, not all of which involve day to day operations. These other projects may or may not fit into a traditional area of risk management described above, however Strategic Risk Advisors can help bring value. A few examples include:

Mergers & acquisition due diligence

In today's fast-paced world where companies are involved in mergers and acquisitions, Strategic Risk Advisors can be a valuable part of your M & A team. Some of the areas in which Risk Management can add value include:

• Reviewing agreements for risk transfer obligations
• Insuring representations and warranties allowing for the early release of reserves for these items
• Procuring the necessary insurance protection required by the transaction
• Reviewing benefits and retirement plans for proper funding and legal compliance
• Reviewing claims experience for significant deferred liabilities, as well as signs of operational weakness
• Develop strategies for effective synergy in consolidating insurance programs and service providers, if appropriate

Broker evaluation and search

There are times when it is prudent to review your insurance brokers performance and embark upon a broker selection process. This may be the result of service level changes following the acquisition of your insurance broker by another firm, or appropriate due diligence resulting from a long-term business relationship. Engaging in a broker evaluation and search process does not necessarily indicate change but represents prudent business management in order to assure that complacency has not developed on the part of the broker and that their capabilities and service continues to be aligned with your business needs and demands. While many organizations prefer competitive marketing of insurance programs as part of the selection process, Strategic Risk Advisors recommends a conceptual insurance broker evaluation and selection process – usually including both written and oral presentations. This supports our view that insurance brokers are a key part of any organization's professional team, and should be considered on par with a firm's outside auditors or attorneys.

Captive evaluation/implementation

The insurance industry is an ever-evolving one which also undergoes market cycles. Additionally, some companies have identified exposures for which traditional insurance products are not effective – either for cost or coverage availability reasons, or do not well match the strategic, tax, or estate planning/succession planning strategies. In some of these situations, a captive insurance company may represent a favorable solution. In addition to a feasibility study to determine the viability of a captive or other alternative risk mechanism, careful consideration of the structure (Pure, Cell, or Group captive) and domicile are critical parts of the analysis.