Risk financing structures such as captives, risk retention groups, and risk purchasing groups require a periodic strategic review to ensure that the goals, objectives, mission, and vision of the facility are compliant with the selected domicile in terms of governance, enterprise risk, and operations.
Key components of this review that Tom provides includes:
- Governance & Compliance Review including a review of key policies, practices, procedures, and key documents as well as a Directors and Officers audit.
- Operational Review which analyzes the documents affecting the day to day operation of the captive or risk retention group.
- Captive Manager Performance Audit which includes a review of IAIS standards on Captive Managers – dated October 2008.
- Performance Audits of Key Partners including the actuary, claims, auditor, legal, etc.
- Domicile Review which evaluates the current domicile against other domiciles domestic or international taking into account future needs, any difference in governance, compliance, capital, structure, etc.
- Value and Performance which includes quantification modeling and profitability analysis; how is the program performing versus the pro forma model.
- Coverage, Marketplace, Structure & Alternatives in order to evaluate how is the program working now versus the original structure?
- Critical Operational Success Factors and Metrics and comparing those to other facilities.