Each business has various types of risks, that they need to identity and navigate. When assessing these risks, we mainly look at the probability of occurrence as well as the impact they are likely to have on your business. For instance, an event that has a low probability of occurring, may have a significant impact on your business, thus high severity, and therefore it may be better to transfer this risk. An example of this may be fire insurance on a building. The chances of a fire occurring might be low, depending on the mitigating factors and precautions implemented, but if the building burns down it can have a severe impact on your business. Thus, the client may select to cover this risk through conventional short-term insurance.

Risks may have dissimilar probabilities as well as different severities and this can vary from client to client. It is therefore crucial to assess each client’s risk and then subsequently determine the most appropriate measures to implement. Certain predictable risks in your business may be more beneficial to retain. This is where Corporate Guarantee can assist you, by both identifying and managing these risks, in a cost-effective manner using a Contingency Policy. By retaining these risks, you can potentially save on your short-term insurance costs and in the long-term convert your risks into sustainable wealth.