Corporate Risk Management

Corporate Risk Management
Corporate Risk Management
  • Risk Prevention
  • Risk Avoidance
  • Risk Retention
  • Risk Transfer
Provision For Loss Of Profit

Provision for loss of profit is also known as Keyman Insurance. The objective of such an insurance is to compensate the company for loss of profit arising from the death of its Keyman. Keyman Insurance provides the company with a financial cushion to tide over the period when its Keyman is absent and also to ensure a smooth transition for the company. During this period, the company may search for and train a suitable replacement.

Business Succession Planning
  • Is a process coordinating the transfer of ownership of a business from one business owner/s (transferor) to another person/s (transferee);
  • Is a sale and purchase of a business or change in management and control, which takes place during the lifetime or upon the death of the outgoing business owner/s;
  • Provides an income for the family of the deceased business owner;
  • Provides an income for the retirement of the outgoing business owner.
Credit Protection Planning

Credit Protection Planning provides the funds to repay the lender of the loan in the event the guarantor or key person dies or is totally and permanently disabled. In the event of a sudden and unforeseen disaster, such as death or total and permanent disability of a company’s guarantor, the company will receive proceeds to pay off any outstanding loans, thus enabling the company to clear its debts and focus its attention on the business. Credit Protection removes the personal financial burden of the guarantor (due to disability), or his family (if he passes on).

Deferred Compensation Planning

Deferred Compensation Planning is a form of monetary reward that serves as an incentive for employees in a company to remain loyal to the company. Employees with Deferred Compensation are rewarded with financial benefits provided they stay with the company for a certain period of time. This is designed to encourage long term employment and loyalty between employers and their valuable employees.