Relevant Risk: Legal (Compliance, Contracts)
New management had been installed at a poorly performing investment portfolio company and they wanted to better understand the risks of the business and how those risks were being managed.
The risk review highlighted a deficient risk management program in that it did not reflect the changing business environment in which the company operated and therefore they were non-compliant with regulatory requirements. The subsequent insurance gap analysis highlighted that the existing insurance arrangements presented the company with some uninsured risk exposures that could have been detrimental to the business had an insurable loss occurred.
Helped the new management identify and understand the risk profile of the company, as well as deliver a framework for the ongoing identification, management and review of their business risk to ensure compliance and good governance. Additionally, the insurance program was enhanced to reflect the insurance and indemnity provisions the company had negotiated in their supplier and customer contractual arrangements.
Eliminated non-compliant exposures to the business, plus delivered a risk management framework that has become embedded into the company’s business operating model, to ensure responsibility for risk has been allocated and allow those risks to be monitored and managed. Enhanced the insurance program coverage to meet the needs of the business, but also managed to reduce the premium spend by approximately $100,000 by demonstrating to insurers the improved management of risk within the business.