Page 176 - RISK Management IC 86

Risk Management

(iii) consultants would also possess the benefits of
experience which the internal staffs would be
lacking.

Contents of Feasibility Report - the feasibility report
should contain all the relevant facts and
recommendations. Besides covering a description of the
present scenario, the report should include analysis of
(i) the risk financing costs and loss experience extending

over at least the last five years for the different
classes of risk.

(ii) the characteristics of the various risks to which the
organization is exposed.

(iii) any unsatisfactory features of the present
arrangements, e.g, any unprotected exposures.

Management Objectives - Before a captive is established,
the first point to be decided is the management objective
for the company. In countries like U.K, the preparation
of a business plan is the prerequisite condition for
granting authorization.

Funding Capability - Before a captive is established , it
should be found out how much capital the parent

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