Business Interruption Insurance Reviews

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					Business Interruption Insurance Reviews




                  The Issue                                                               idRisk implements a
                  To comply with the requirements of shareholders, governing
                                                                                          process which
                                                                                          includes analysis of:
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                  bodies and insurers, it is increasingly important that company
                  officials and their advisers understand the business
                  interruption risks inherent within their organisations and the              Revenue and definition
                  adequacy of their insurance arrangements.                               and calculation of insurable
                                                                                          values including
                  The impact of these risks is increased by:
                                                                                          interdependencies,
                       Interdependencies within the organisation.                         seasonalities and “market”
                       Single points of failure and/or bottle necks in the process        sensitivities.
                       chain.                                                                 Increased cost of
                       Single sources within the supply chain (often not                  working expenditure.
                       understood or evaluated).                                              Key items of
                       Information and communications dependencies.                       infrastructure and
                       Property/location risks.                                           replacement lead times.
                       Risks at the premises of key suppliers and customers.                  Business activities which
                       Market sensitivities and brand and reputation issues.              cannot easily be
                                                                                          subcontracted.
                  The solution                                                                Resilience and
                                                                                          mitigating factors.
                  idRisk offers a professional and specialist service to evaluate
                  key insurable business interruption risks. This is achieved by              Identification of
                  the production of an 'interruption report' detailing:                   suppliers which are single
                                                                                          sourced and the ability to
                       The principal financial and operations dependencies and            resource items.
                       the potential consequences of an insurable event.
                                                                                              Dependency on
                       Quantification of business interruption loss figures.              electronic data and
                       An analysis of future insurance needs.                             communications and
                       Risk Management recommendations as appropriate with                disaster recovery planning
                       particular reference to Business Continuity Management.            arrangements.
                  This consultative service is offered as a stand-alone review,               Business continuity
                  as part of an operational risk review, or as part of, and               planning/risk management
                  quantification of, a business continuity management exercise.           arrangements.




                  Benefits of idRisk’s solution                                Assists management in mitigating the
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                                                                               risk exposures and formulating a risk
                      Calculates the Maximum Amount Subject and                financing programme.
                  Normal Loss Expectancy to assist management,
                                                                               Measures the value of business
                  placing brokers and insurers in evaluating the B.I.
                                                                               continuity planning arrangements in
                  exposures.
                                                                               terms of reduced B.I. exposures.
                      Evaluates future insurance needs and audits              Gives an understanding of the terms
                  these against current arrangements.                          and conditions of the insurance cover.


                                                                           idRisk Advisory Limited is authorised and
                  Contact idRisk     Telephone: 0845 22 55 606
                                                                           regulated by the Financial Services Authority