Assignment Widespread plc is a global operation with representation in many countries across the world Its Head Office operations are based in London The organisation has decided to undertake a strategic review of its risk financing program with a suitable international insurance broker and consultancy working alongside its senior risk management team The organisation is heavily reliant on the traditional insurance market for dealing with its risk in a global context but wants to use the opportunity to review other risk financing alternatives An initial report is being prepared for submission to the board Required If you were responsible for submitting this report, what topics would you cover and what would you expect from the board review What are the perceived main advantages and disadvantages to this organisation of establishing its own cash fund from which to deal with losses arising from certain risks Its current practice of buying global insurance products have significant benefits for this organisation over and above those associated with any insurance purchase What are these likely to be What do you consider to be the likely reasons for the report to conclude that the use of the alternative risk transfer market is unlikely to be a positive area for this organisation to explore

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Assignment: Widespread plc. is a global operation with representation in many countries across the world. Its Head Office operations are based in London. The organisation

Assignment:

Widespread plc. is a global operation with representation in many countries across the world. Its Head Office operations are based in London. The organisation has decided to undertake a strategic review of its risk financing program with a suitable international insurance broker and consultancy working alongside its senior risk management team.

The organisation is heavily reliant on the traditional insurance market for dealing with its risk in a global context but wants to use the opportunity to review other risk financing alternatives. An initial report is being prepared for submission to the board

Required:

If you were responsible for submitting this report, what topics would you cover and

what would you expect from the board review?
What are the perceived main advantages and disadvantages to this organisation of establishing its own cash fund from which to deal with losses arising from certain risks?
Its current practice of buying global insurance products have significant benefits for this organisation over and above those associated with any insurance purchase. What are these likely to be?
What do you consider to be the likely reasons for the report to conclude that the use of the alternative risk transfer market is unlikely to be a positive area for this organisation to explore?