Risk Management
The key to any risk management program is identifying
the risks facing any entity and then deciding the best method available for a
company to manage those risks. You can do one of three things: 1) retain the
risk; 2) transfer the risk to a third party; or 3) a combination of risk
retention and risk transfer.
We specialize in helping you decide what type of risk
financing program will best fit with your overall financial goals. Some
of the things we do include:
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Analysis of historical loss data to stratify losses
by layer of retention and transfer.
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Use of historical loss and exposure data to forecast
losses into the future. This includes the use of various loss
development and trending factors that best fit each given industry.
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For larger accounts with higher levels of loss
activity, we can develop loss development triangles, allowing us to
calculate your loss development factors which can then be used as a
loss forecasting tool.
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Analysis of various risk transfer and risk retention
programs such as: Guaranteed Cost, Retrospectively Rate Programs,
Large Deductibles and other alternative risk financial options.
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Comparison of programs using
After-Tax-Net-Present-Value models. These allow us to compare
different programs given various loss forecasts and a client's
particular effective tax rate as well as their after-tax costs of
capital. This is the only method that can give you a true ultimate
cost comparison when considering different types of risk financing
options.
