Business Intelligence (BI) Business Intelligence (BI) Business Intelligence (BI) Business Intelligence (BI) non-traditional risk non-traditional risk non-traditional risk non-traditional risk non-traditional risk
Alternative Risk Transfer Alternative Risk Transfer Alternative Risk Transfer Alternative Risk Transfer Alternative Risk Transfer Alternative Risk Transfer Alternative Risk Transfer
fifa


So, what is Risk Financing in simple terms?


This is a bit of a mouthful. It is a tax efficient means to pre-fund legitimate, known and unknown (reasonably predictable) business liabilities. These may, or may not, be normally insurable (or viable) in the traditional Short-term or Long-term markets.
This means you allocate business funds to a suitable, secure, financial service provider as a business expense and claim them back as losses arise in your business. These funds will generate bonuses too, if unused, which is quite handy as we go into a higher interest environment. There are VAT and corporate tax considerations when all types of transactions occur, of course. The taxman will give you tax deferral, not a tax holiday.

What are the names of these types of arrangements?

Types of Alternative Risk Transfer (ART).

  1. Risk Financing Policy
  2. Rent A Captive
  3. Cell Captive

NB. The same principles apply to all ART types above, although the captives are geared for higher volumes of business.

This looks like traditional insurance, how is it different?

In a nutshell, you pay for your own losses and no one else’s. So think long and hard if you have a poor loss record; would you like to pay for some or all of your claims?

Would you like to discuss this further? Contact us at paulb@artrisk.co.za or paulb@pobox.co.uk or call +27 (0) 83 708 3634.


Supplier of Risk Management services to the 2010 world cup South Africa
Paul Brightman - Alternative Risksmiths and Traders (Pty) Ltd. Short name - ART.
Cell : +2783 708 3634 Work : +2711 646 2777
11, Taylor Rd, Greenside, Johannesburg. Code: 2193.
paulb@artrisk.co.za


www.artrhc.com
www.risktherapy101.com
www.risktherapy101.co.za
www.risktherapy.co.za
www.risk-doctor.com
www.r3solutions.co.za
www.charterfinancial.co.za
www.fsb.co.za
www.ber.sun.ac.za
www.frucom.co.za
www.itmnews.co.za

 

 

 

 

"We have already given you a start on the road to a healthier view, by merely expressing a new idea. You can now reflect upon the other benefits of conversing with us or, better still, make contact."

 

 

 

 

Risk transfer
Risk transfer