UNPACKING OUR CONCEPT OF ‘RISK’
What exactly is risk?
Risk is potential harm that may come from a present process or future event. We often associate risk with probability but, in professional risk assessment, risk combines the likelihood of a negative event with how harmful it would be. Understandably, risk can be terrifying for business owners because, no matter what industry you’re in, you’re guaranteed to encounter it.
As a business owner, you may be unsure when to take a risk and when to hold back.
The answer is: analyse your risks and manage them.
That’s where Corporate Guarantee comes in.
A Contingency Policy
To manage your risks, Corporate Guarantee selects cost-effective approaches that minimise threats. It’s impossible to mitigate or avoid all risks because, at some point, a business will be limited financially or practically. This means all companies must accept some residual risk.
Corporate Guarantee allows each client to create a customised insurance solution. You create an insurance capacity to carry your own risk or to provide a way of negotiating more favourable rates in the conventional insurance market. We call this a ‘Contingency Policy’.
Corporate Guarantee’s Contingency Policy is a part of the Alternative Risk Transfer (ART) market, where ART offers a way to protect assets from risks by using non-traditional insurance. It is an option for clients with long-term commitment to property loss prevention, readiness to share risk, a focus on loss control and willingness to take on some of their own risk.
A must-have item in the toolbox of risk managers, ART has been developed to the point where it accounts for substantial international premium income.
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