At Fenix, we specialize in risk analysis and program design that dovetails with commercial insurance placements and more importantly a client´s enterprise risk management (“ERM”) approach.

The success of a captive is closely linked to the sponsor company´s approach to risk management. We would encourage all sponsors to consider a captive insurance company as an integral part of their overall risk philosophy and dovetail captive tools to risk management needs.

ERM offers a holistic approach to risk. It looks at risk on an enterprise wide basis.  The ERM process looks to identify risks within and external to the organization. Those risks may include such things as:

·         Hazard – Liability torts, Property damage, Natural catastrophe

·         Financial – Pricing risk, Asset risk, Currency risk, Liquidity risk

·         Operational – Customer satisfaction, Product failure, Integrity, Reputational risk;

·         Internal – Poaching; Knowledge drain

·         Strategic – Competition, Social trend, Capital availability

By considering such risk areas an organization can then identify, evaluate and consider control mechanisms for their exposures or methods by which a company can exploit its opportunities. 

We recognize that ERM, especially within a small and medium sized enterprise (SMEs) can be informal and fluid. We look to work to accommodate a client´s ERM approach.

Whilst larger companies can have inbuilt risk diversification by way of size, SMEs tend to lack the ability to sustain loss directly from cashflow. For certain risks, a better approach may be for a company to share the risk with other similar entities to spread the risk. One way to do that is with the use of a captive insurance company and the utilization of a risk pool.

Fenix operates a risk exchange facility that pools certain of our captive clients´ insurance risks to enhance their ERM framework.