Both organisations and insurers need to identify what is the potential interruption to business in terms of the quantum of gross profit lost and for what period of time, following an insurable loss to assets. RiskTech can provide a process that maps your business as a series of inputs such as raw materials, utilities, components etc., through the business process flow to finished product, distribution and sales.
The business interruption review analyses:-
- Key supply chain dependencies;
- Critical process flows and key machinery and plant;
- Customer and distribution dependencies;
- Identifies major “show stopping” failure points;
- Identifies major work arounds such as alternative process flows, duplicate plant, spares holdings as well as preventative measures such as condition monitoring and maintenance;
- Reviews alternative suppliers and customers;
- Identifies alternative means of working and their associated costs; and
- Key considerations influencing gross profit are identified and reviewed for market cycles, seasonal impacts and other influencing factors.
The Benefits
- Provides both insurers and the client with a clearer idea of the quantum and duration of potential interruptions to business (excluding catastrophic occurrences);
- Identifies other business environment factors which may impact gross profit; and
- Identifies major business interruption scenarios where inadequate work-arounds or alternative means of working are unavailable necessitating the development of other mitigating strategies such as business continuity plans, stand behind agreements etc..