Journal PostsLevel 2
Unfortunately, only a small proportion of risk posing threats to a client's operations can be avoided completely. In the first instance, so-called 'operational risks' belong to this category. The current 'sub-prime' turmoil, which may be viewed as a monumental manifestation of operational risk, is a counter-example showing that even here risk-avoidance cannot be taken for granted.
By nature, hazard and financial risks which a client usually has a limited control upon only, may not be completely avoidable in particular. However, appropriate risk protection measures can reduce both severity and frequency of loss.
Subject to the results of level 1, our services comprise
- the analysis of effective risk protection measures (including early-warning systems) relating to operational, hazard or financial risk, and
- the quantitative, particularly reducing, impact of these measures taken with respect to risk premiums such as considered in levels 3 and 4 of the Risk Management process, i.e. self-insurance and transfer of risk.