M81 - Chapter 9 Other Services Flashcards
Name the 5 risk management techniques
Reduction
Avoidance
Minimisation
Transfer
Prevention
Can a risk be eliminated?
Yes
Steps of risk management
Identify
Evaluate
Controlled or eliminated
Measures put in place
What two types of captive insurers are there?
Wholly owned by a Company or Group
Rent a Captive - Owned by banks and Insurers
Why are most Captives off shore EG Bermuda
Avoid FCA regulations and be classed as an Insurer
What is a Catastrophe Bond
A form of risk transfer
Funds available from the Capital market to insure risk.
Monies are transferred to a Special Purpose Reinsurance Vehicle, this pays the claims.
Who is most likely to use a ‘Cat Bond’
Re-Insurers
What Surveys might a broker offer?
Underwriting Survey - Pre-quote to obtain risk information
Risk Management Surveys - Fleet Management as an example
Brokers off BCP services, what two facts do BIBA have?
80% of business close down in 18 months of a major incident
90% of business close down inside 2 years from a major data loss
Other Services offered?
Business Interruption Reviews - Reliance on supplier, how long the cover should be for
H&S Workplace - Measure required
Liability Surveys - EG Risk of product recalls
More other Services
Motor Fleet Management - DSA Training, Drug checks etc.
Environmental Surveys - Assesses a firms risk to the environment. As set down in the EU Environmental Liability Directive 2009
Post Loss Surveys - Quantifying the claims, completing the forms and reducing the loss
Disaster Recovery Services - Product recalls, assistance with a major incident.
What is risk identification?
A combination of techniques’ designed to assess activities of the organisation to understand hazards that may hamper future plans
What is the risk evaluation process designed to assess?
The financial value of the risk
The probability
Impact of self insurance and deductibles
Cost effectiveness of loss elimination, reduction and control measures
Viability of risk transfer to insurance or Captives
Risk Reduction?
Reduces the degree or the frequency of a risk that cannot be eliminated EG Use of seatbelts, installing new machinery.
Risk Prevention?
Introduce measures to prevent or reduce the impact of incidents EG Cannot work over a certain height
