The Indemnis Approach
Our goal is to establish a trade risk management solution with the client that is consistent with the client's needs and objectives. Because of the complex nature of the trade risk issues and the interdependence across the organization, this solution can only be determined after a thorough structured client review. The right solution will be determined against the background of a clear understanding and quantification of the client risks, operations and strategies and may or may not require risk transfer products and services.
With Indemnis clients experience the personalized and consultative approach of a boutique that goes well beyond a catastrophic credit loss solution to include: improving liquidity and financing arrangements; expanding sales safely to new segments, countries and customers; strengthening trade risk management controls to best understand and manage risks and Sarbanes-Oxley compliance; and more.
Indemnis will endeavor to deliver a structured, consultative approach to working with our clients. Recognizes each client is unique and at a different stage in its corporate evolution, Indemnis is committed to customizing our approach to best suit your situation - whether requiring some or all of the Indemnis Approach. The complete approach will involve:
1. Understand the client's corporate strategy.
Begin by understanding the overall corporate strategy and those areas that can be impacted both negatively (e.g. a large catastrophic credit loss) and positively (e.g. export sales growth or improved financing relationships) by trade risk events and trade risk solutions.
2. Evaluate the client's trade risk management strategy.
Identify and describe the risks; Assign likelihood of risk event and consequences of event - internal and external; Determine standards to be achieved - reserving, risk mix of clients, bad debts, etc; Is trade risk management approach consistent with overall corporate strategy? Is focus of sales effort on quality credit risk prospects? Is there a role within the strategy to use it as a tool to grow? How is communication and buy-in of the receivables risk management strategy achieved? What is the role of strategic partners in Risk Management processes - information providers, risk transfer, in-house receivables management vs. outsourcing, etc?
3. Review client trade credit and operational risk management processes.
Review credit and collection policies and procedures - customer risk ratings, limits, approval process, focus on largest and highest risks, identification of credit deterioration, dispute resolution, payment terms, etc.; Consider information collection activity, sources, quality, cost and analysis; Evaluate ownership and accountability, the sales/credit interface and consistency of operations across companies within the group. Consider incident reporting and management processes, documentation and audit trails, management reporting requirements, performance measurement and management, routine internal audit activity and more.
4. Propose alternative risk transfer solutions.
Propose solutions consistent with risk retention appetite and those aspects of the corporate strategy that can be positively impacted by the trade risk management solution. To what level do you want to backstop risk management control activities? How can solutions assist in safely expanding into new segments and markets? Or improve financing arrangements? Source markets with the underwriting flexibility, capacity, claims paying ability, international representation and pricing to meet client risk transfer needs.
5. Assist with compliance and with ongoing capacity requirements.
Support the client with active and ongoing compliance to the internal receivables risk management strategy, processes and budget and to the insurance requirements for protection of claims situations and to maintain good underwriter relationships.