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Enterprise Risk Optimization
All companies are exposed to the financial consequences of natural and man-made risks, which we refer to as the Corporate Risk Spectrum. The traditional approach to handling these risks is through the purchase of insurance. While insurance is effective from a pure risk transfer perspective, it can be costly. Desired coverage is not always readily available in the market, frictional cost associated with adjusting losses occurs and, there still exists a self-insurance element due to deductibles and policy limits. As a result, insurance may not always be the most efficient approach to managing risk.
ABS Consulting Corporate Risk Assets Risk Spectrum
This potential inefficiency in the traditional approach to risk management is causing many companies to move to a risk financing strategy for managing their risks. Under this new approach, all options and combinations for managing risk are considered (e.g. insurance, alternative risk transfer, retention and/or mitigation) in the creation of an optimal risk financing strategy for managing the company's risk.
ABS Consulting was created specifically to help companies create risk financing strategies that minimize the overall financial consequences of natural and man-made risks. ABS Consulting accomplishes this through the use of a three-phase program which results in a tailored risk management strategy aligned with the corporation's objectives:
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Phase I: Risk Identification and Assessment
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Phase II: Quantification of Financial Consequences
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Phase III: Analytical Review - Development of Optimal Risk Strategy
Development of Optimum Risk Strategy
ABS Consulting incorporates specialized analysis techniques, proprietary software, engineering expertise and dynamic financial analysis in this process to determine the optimum approach considering the client's desired goals and objectives. These are some of the same techniques and tools that the insurance industry is using to manage their risks. The end result is a risk financing strategy that combines the use of traditional insurance, alternative risk transfer, retention and/or mitigation to more efficiently manage the corporation's overall risk.
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For more information, contact:
Kenneth A. Travers
SVP, ABS Consulting/EQECAT
1-302-239-1145 | ktravers@eqecat.com |
