Archive for the ‘Commercial Lending Issues’ Category

Is YOUR Business selling to RETAIL?

April 24, 2017

It wasn’t that many years ago when a manufacturer didn’t really worry about Accounts Receivable (A/R’s) if one sold or supplied to a BIG NAME firm, e.g. General Motors (GM), Chrysler, Delphi, Kodak, Blockbuster, Schwinn Bicycle, Marvel Entertainment, Hugo Boss, Reader’s Digest, Trump Hotels, Sears, Radio Shack, etc., because they always paid you and you really didn’t worry the same as the neighborhood “Mom & Pop” operation, right? Even if you gave 30 or 60 day terms and didn’t get paid for 90 days, it just meant you waited but why would you really need worry.

Unfortunately, today’s world has changed substantially and auto makers like GM had to restructure with governments bailing them out, Radio Shack went under and Sears recently said there was “substantial doubt” as to their long-term operating ability. WOW! Many of the names listed above have all had to restructure and that meant unsecured vendors were not very happy.

So how do YOU manage your business to ensure that you will be paid and remain afloat? I have met so many companies, through the years, that would often have 80% of their sales from a small number of customers and I would always recommend prudent Risk Management – “don’t put all your eggs in 1 basket” – and suggest they consider diversifying their markets and considering options for transfer of their risk, e.g. trade credit insurance. Some clients neglected to follow any or much of my advice and I do know of several who are no longer in business.

Trade credit insurance is often used by firms in Europe but not so often in North America. Why? Europeans may have been less reliant on one’s reputation, perhaps, but my own banking background tells me that North American banks don’t suggest the option, don’t know enough about it and don’t vary credit terms adequately to encourage YOU obtain this. I also hear that terms are much more favorable in European banks for those companies who do purchase the option so many of you don’t feel the savings warrant the added expense.

Where I do find many Canadian (can’t say the same is more or less frequent in the US) companies using Trade Credit Insurance is in their Export Financing but why only for those types of deals? Perhaps you Factor your A/R’s but I just read “Wells Fargo & Co. is among the firms no longer providing Sears vendors with factoring — short-term financing that helps gives them a cushion.” Imagine then what I seem to hear more often than not – insurance works when you really don’t need it but often doesn’t respond when you truly have the need. Do you feel that way or have you heard this said?

This is why I continue to preach Risk Management and supplementing with a suitable Risk Transfer mechanism (insurance should not be solely price-driven when purchasing but knowing what is and is NOT covered and buying the policy from a reputable agency/brokerage with adequate Errors & Omissions insurance of their own and a suitably rated (I tend to like AM Best A-ratings or better) underwriter for your General Liability, Trade Credit, Cyber, Crime, Specialty and Directors’ & Officers’ Liability policies.

I do hope you realize that insurance buying may be 1 of the most important business decisions you make each year but I do know that you overlook this importance because of the trust you place in your providers and the lack of understanding of what is really behind an insurance contract.

 

Let’s discuss today! I can be reached on Twitter (@WRiskManager), on LinkedIn or Facebook and by e-mail – larryewinsurance@gmail.com

 

Info derived from http://www.msn.com/en-ca/money/companies/sears-payless-woes-push-retail-vendors-to-get-more-militant/ar-BBAcFIC?li=AA54rW&ocid=spartanntp and other online material.

Student Apartments, Residences, Housing, etc. – NOT Apartments!

September 20, 2011

Any property investor or LENDER in the Province of Ontario, CANADA who has an equity or financial interest in student accommodations should take special care when purchasing, renewing or accepting as collateral an insurance policy – insurance companies do NOT like to insure any properties with multiple students living in any unit.  Many insurance companies decline the class of business so that anyone who is selling insurance through those companies may not be insuring you, whether you hold an insurance policy or not!

If you are reading this and own or lend on student housing where the insurance policy does not identify as such, e.g. shows as “apartment building” on your policy – do yourself a huge favour and ask to have the policy amended by the insurance company – not just the agent/broker.

Some commercial realtors are not yet realizing the predicament in which this places an investor – buyer or seller (and also the realtor) – if you own any of the many student apartments being advertised as such.  And many insurance salespeople are also not aware of the consequences to the client, the firm (brokerage or agency) or the insurance company if written as an apartment building and a claim occurs.  If declined by an insurance company for “material misrepresentation”, our whole industry is tarnished by your oversight and I, for one, do not appreciate hearing of another insurance company claim that was not paid, legitimately or otherwise.

Insurance companies on both sides of the border do not like multiple tenanted risks – “rooming houses” by definition – and most of these student apartments have 5 in each unit; well, how can anyone describe this occupancy in any other terms?  If you don’t wish to take my word for it, please do some research and you will quickly learn and agree with me.

Many of you (I have to take each of you at your word when I hear that Aviva, Economical, etc. are insuring you) have an insurance policy that may not respond to a claim in the event of a loss – property or liability – because the insurance company will not insure “student residences”!  Yes, this is common knowledge among the insurance community so anyone who is insuring as an apartment building had better be extremely careful in dealing with you; do NOT rely on their written evidence that you have an insurance policy but insist on the insurance company showing on the policy or verifying in writing that you have students occupying the property.  There are acceptable insurance markets for this category of risk – Lloyd’s being one, Zurich (yes, we have access for fire-resistant structures through this carrier) and, possibly, others through “subscription” or wholesale facilities.

I specailize in working with investors, lenders and property managers so why not just contact me for advice and assistance to ensure that you do not face the terrible consequences of having an insurance policy but not really having insurance?  I have an appointment this week with someone who thought State Farm still wrote student apartments until they contacted the company to determine otherwise (after I encouraged them to obtain written verification that they do have coverage).

And one final note: ask your insurance professional to explain cancellation when done “ab initio” – it means that you were cancelled as if there never was any insurance policy written.  I am sure that you do not wish for that to happen to you!

Student Apartments – calling all investors, underwriters and brokers – BEWARE!

September 20, 2011

Why is it so easy to lie (well, I am frank – let’s call it “stretch the truth”) when someone asks a question?  I made a phone call that resulted in exactly what I anticipated and an outright “LIE”!  ‘Who do you have that will insure “Student Apartments”?’  This, after I explained that it was a 4-floor building of 7 units and 5 students in each apartment which I know is a “STUDENT ROOMING HOUSE” description – NOT a description for an Apartment Building.

The office I phoned was a smaller brokerage I know that advertises they insure these exact type buildings (I’ve run into them in my travels) and did exactly what they were expected to do – ask me for my information where I was very evasive since I am a competitor of theirs, unknown to them as John Smith.

Because they have a website and a Facebook page, it becomes easier to document what I need to use in a blog of this sort.  There are “X” insurance “markets” showing in total for their firm – this includes Auto, Substandard Auto, Surety, etc.  This means I can eliminate several and a few more who have expressed to us  (Aviva, for example, does not have the property capacity to exceed $1Million, Intact has withdrawn quotes and Economical refuse to insure) that they do not have an interest in insuring “student housing/apartments” of any sort in our geographic territory (I won’t say they do not in other parts of our country or the world because I know they do have smaller percentages of property on subscription policies available through specialty wholesale markets) – Ontario, CANADA.

I will say the broker stretched the truth, unless they were counting wholesale markets when replying to me.  Why tell me one has 4 or 5 insurance companies that will insure this kind of risk?  Either it is a lie to the caller or to the insurance company when describing the type of business when quoting is requested – OK, I will tell you their firm is also a member of an apartment managers association, and, if they were a larger brokerage, may then have exactly what they told me BUT they are NOT.

I will not accuse the brokerage of misrepresenting to the insurance company – I have only seen 1 policy they had in force where I know this may have happened but if you’re a member of an association, would it not be easier for an insurance brokerage to include this sort of property in their portfolio?

What I do know is that there are several insurance brokerages in my territory of operation who have been misrepresenting STUDENT APARTMENTS to the insurance companies as APARTMENT BUILDINGS – and, for those who are not familiar with the differences, they are huge!  An apartment will house a single family or a couple of unrelated individuals – NOT 5 students who are unrelated in EACH apartment unit.  The risk is greater and very significant to an insurance company so why would any insurance company insure for the same premiums as an apartment and 1/3 or 1/4 what Lloyd’s might charge for Student Rooming Houses?  They would not, knowingly!

I have been researching this a great deal – in both Canada and the USA – and will tell you that there is a good likelihood, in the event of a significant claim, you will find you do NOT have any insurance so why pay for a policy that is not going to respond when you need it to?  If you are paying an insurance premium for “fool’s gold”, do you really believe you can collect for “gold” after the loss?  I am not trying to scare business to my door but being very practical and hope that each of my readers understands that.

It would be easy to document for any company underwriter where the streets are (there are at least a half dozen university campuses – Guelph, Laurier, Waterloo, Western, McMaster, Conestoga – within 1-1.5 hour drive of my home office).  Since I am so familiar with the territory, why not ask?  Even Google Maps will assist if you’re not anxious to contact me.  For those underwriters who are not familiar with this simple fact – Economical and Aviva are presently on risk for many of these buildings that they will not and do not insure – HMMMMM!  How many other insurance companies are insuring “multi-family apartments” within 1-2 kms. of an university campus?  Look at Google Maps and check your building addresses and descriptions!

Knowing that the market in the USA is anticipated to grow (and Canada is following suit) where starts were expected to tally as much in 2011 as in the prior 3 years, I fully understand why insurance brokers are targeting this sort of risk but how long before your reputation is tarnished by not disclosing to your underwriters what is being insured?  How long will it be before loss ratios mount and you risk losing company contracts?

Yes, it may be an impossible task for me to educate everyone involved in the buying, selling and investing in the latest real estate craze but I surely hope to try.  Insurance companies do not have to pay a claim or defend you if there is any known “material misrepresentation” and it will then be up to you to decide how to pursue your insurance agent/broker.  What is the cost – both financially and in time – to you?

Try cutting to the root of the problem and discuss with a professional who is expert in the field of student housing.  I await your comments, mail, calls.  And I cover from Ottawa to Windsor and do know the niche!

Just a Thought – But Can You Imagine?

January 7, 2011

This post will probably generate replies from the legal profession (I do not want anyone to think he/she must be a lawyer to continue, however) but might also from insurance company claims personnel, as well. Why? Read on – and I promise not to bore anyone with this thought!

 

I was enjoying a phone conversation with a prospective client and long-time acquaintance of mine (yes, I’ve known him for 15+ years but really never pursued his business until now). This prospect is wishing to expand his business by opening other locations. I will call him “A” so that you can readily identify him. What is “A’s” business? A licensed pub is what it is and one of the locations we discussed is a former pub site that I have known well for 15+ years, too. The reason it became vacant is that the landlord/property manager increased rents to such an extent that the tenant decided to close up their business. What I enjoyed about the discussion with “A” is that he mentioned an idea that gave rise to my mind thinking of potential lawsuits – now, is that not a great way for a Risk Manager/Insurance Broker to begin 2011? At the minimum, it will encourage growth of my business, right?!

 

“A” suggested that a landlord might have a rental escalation clause after an introductory period that might be significant and could result in a tenant being forced into bankruptcy. I started to think that potential creditors might receive counsel that the landlord/property manager may have contributed to the demise of a tenant’s business; if that were the case, would it not then be possible the landlord/property manager might then be named in any lawsuit? I am curious to know if anything like this has ever happened or whether my expert and learned readers might agree with me that there is a chance that lawyers might be drawn into this type of arrangement?

 

Example – introductory rents for 6 months of $15/sf (OK, I’m not really serious about the amounts but I’m using this for ease in working with) which then escalate to $25/sf of a long-term lease? This example means an increase of approximately 65% which is quite sizable. Would this not be significant enough to cause default if incomes were not increasing, especially if the landlord/property manager had a prior tenant with the same style of business occupying their properties previously and/or if the increased amount was out of line with comparable real estate in the area? Could this not be a cause for a creditor to then sue the landlord/property manager or include its Directors and Officers (D&O) in a claim for payment of a defaulted contract? I propose that it could be, especially with the circumstances I am proposing here. We all know that lawyers’ fees can be significant so is this not another reason to purchase D&O Liability Insurance?

 

Your thoughts are most welcome and encouraged!

 

Happy New Year to all.

Is a Second Opinion Worthwhile?

November 18, 2010

It is possible that, with age/maturity, I have learned a few things in my life but I’m slowly losing my tolerance for others’ stupidity or lack of knowledge when they should (because they’re professionals) know better. Why do I feel this way? To begin, I enjoy learning – profusely learning – through reading, whether it be online, books, periodicals, etc. and attending seminars, speeches, etc. I hope you do too because learning should never stop, especially for professionals – experts in their fields of practice.

Last week, I had the pleasure of identifying several weaknesses in our own firm’s marketing by listening to Faith Seekings, an online connection of mine on Facebook, LinkedIn, etc., while attending the AGM for the Canadian Institute of Management’s Toronto Chapter. I will be the last to admit that our firm is not without fault but we are always searching for ways to improve.

Last night, I attended a joint dinner meeting of the CIM/CMA/CGA Grand Valley in Kitchener and listened to Eugene Roman, in charge of New Product Development for Open Text, one of the numerous success stories of “Canada’s Technology Triangle”. Eugene spoke on issues that directly impact my own industry and attract my attention – risk, compliance, records retention, etc.

So how does this relate to my lack of tolerance then? For anyone who doesn’t know me, I have worked in the “insurance field” for 20+ years, including Risk Management, following a lengthy banking career in both Canada and the USA. I have seen much and I am constantly “shaking my head” at others’ lack of understanding of our business but this week…it was the “icing on the cake”.

For years, I have been in the minority when suggesting that if an insurance broker does not understand the business you, the client, operate, either learn it very fast or suggest that you deal with someone who has the level of expertise required to adequately protect you and to offer you advice.

Now…the rest of the story, as one of my favourite radio phrases goes…A residential builder that I have known for several years and pursued for most of that time has provided me with copies of the firm’s insurance policies – a shambles due to anyone’s lack of insurance understanding (so I am not blaming or placing fault on him) and having many different policies all due at different calendar dates. I know the insurance brokerage well and this client is one of that firm’s largest clients – and surprisingly, does not receive anything special in the area of service (possibly because the brokerage is afraid of the builder learning how inept their firm is).

One project that is currently under construction has 2 phases – with a total “insured value” of $500,000. The problem only begins when I questioned the builder as to his cost and am told the 1 townhouse structure is $800,000. The worst part of the problem is that the 1 building is nearing completion and won’t finish for another 4-5 weeks while the other building is framed and roofed and ready for the exterior to commence.

If a fire occurs and demolishes both structures (likely to happen with high winds and very frequent in the insurance industry), he is required to insure to 100% of his final cost and is penalized for every dollar of loss, except that he only has $500,000 TOTAL when he may lose $1,000,000+.

Will he be bankrupt, at that point, due to the insurance professional’s lack of business acumen? I hate to imagine anyone ever losing their business because they relied on professionals who were less than that. What might my recommendation be? For anyone without a sufficient understanding of risk management and insurance, never rely on anyone for too long without obtaining a second opinion – it might be the difference between success and failure for your company.

Contractual Liability and/or Compliance?

June 18, 2010

Attention!  Accountants, Lawyers, Lenders, Business Executives, Managers and Owners!

Having spent 2+ years reviewing $1.5+B in Commercial Loans provides one with an insight into the insurance industry that even an insurance professional would never normally experience.

What do I mean?  Well, with nearly 20 years in Retail Commercial Banking in both Canada and the USA, I knew that banks do not fully (and never will) comprehend the Commercial Property/Casualty Insurance business.  Yes, I did have some insight into the wonderful world of insurance, having grown up at the dinner table with a father and older brother discussing the intricacies of their day’s activities – Lucky Me!

So that just made it easier to enter the field when I decided that I needed a change and I now have spent 20+ years in this sector of Financial Services.

Following 9/11, I wanted to become more attuned to Risk Management and obtained my Canadian Risk Manager designation (well, I was a Registered Insurance Broker and had previously obtained my American Institute of Banking Commercial Lending Diploma, so why not?) in order to better understand risk as opposed to insurance.

Well, I thought I had seen a lot until the past 2 years of working on Loan Reviews – and this was a real eye-opener!  Borrowers agree to terms in their Loans whereby they don’t ever ask their insurance providers about the terms/conditions regarding insurance and costs, prior to signing (yes, they may confer with their Lawyers but, unless their Lawyer works with qualified insurance people, they cannot adequately advise on the subject of insurance, either).  Lenders neglect to confer with Risk Consultants prior to formulating their own desired requirements and Lawyers do not fully understand what is available and what will never be available in the insurance industry.

An example, I saw, is a Lender who decided to offer facilities to a Client on a number of properties  with a $5Million Liability minimum requirement.  The Insurance Broker offered $5Million on a blanket basis for 37 properties in the Aggregate – something that would, in many cases, be grossly inadequate!  The Lender did not have the ability to amend their Agreement, except within a condition they preferred not to apply to the Borrower – something that I encouraged be done.  I also know of several insurance “professionals” who would never have sold only a $5Million Liability policy in the Aggregate without Umbrella/Excess coverage being applied but the firm insuring these risks did not do so.

What a problem, right?  Well, how about insurance providers who only wish to make a sale and never request copies of leases, contracts, franchise and loan agreements, etc. but also provide ridiculously low deductibles for extremely high property values and then complain that their clients will not pay the added insurance premiums!  I saw this time and time again.

Imagine being able to purchase insurance or consulting service from a professional who was able to reduce your insurance costs and provide better coverage – is this possible?  Many times, the answer is a simple YES!

If anyone – lawyer, accountant, lender, insurance sales professional or a company/business-owner – wishes to contact me for further discussion on this topic, please e-mail me at WRiskManagerBlog@gmail.com with the Subject Line – Contractual Liability and/or Compliance?

I look forward to hearing from anyone reading this blog here or on one of my online network sites.

Commercial Loan Agreement Compliance – Lenders, are you concerned or not?

January 14, 2010

We’re really upbeat on our thoughts for 2010!

It seems like the new decade has arrived with a huge bang after the whimper of 2009 left with such a bad memory.

We have added 2 new Commercial Lenders, including another bank (3 of Canada’s “Big 5” Chartered Banks are using our firm’s services) and we have already exceeded January’s 2009 Loan Review volume in the first half of January, 2010!  WOW – now that is a terrific start to a new decade, isn’t it?

Who else is lending Commercially and who needs outsourcing of Borrower Loan Agreement Compliance? I can give many important reasons for considering outsourcing this task, as opposed to trying to perform an adequate job in-house, but will not do that now.

Why not, simply, leave it to the experts to ensure that your Borrowers meet the terms of their Loan Agreements when they obtain Property/Casualty insurance? Whether you’re in Canada or the USA, outsourcing to reduce your firm’s own risk while knowing that experts in the insurance and risk management field can be relied upon to protect your firm’s balance sheet should be paramount in your decision-making.  That makes us your answer!

As your loan institution cannot be expected to have the knowledge of insurance professionals, why would you not consider allowing a third-party provider that has this expertise to work with you?  You are the experts in Lending, Commercially, and rely on Attorneys to provide legal assistance.  Is this any different from outsourcing insurance documentation skills to those who know the industry?

I look forward to your feedback and have a prosperous, healthy and happy 2010!

Brand Reputation – How Important to you is Managing Media Risk to prevent the damage from Negative Press?

December 2, 2009

I won’t take credit for this since my morning e-mail from RightNow Technologies is a promotion of their upcoming webcast and their firm’s services but…do read.

It is a very interesting article re Media Risk and much of what I have been recently stating on my various WRiskManager platforms on Plaxo, Facebook, etc.  I know that a market capitalization reduction of $180 Million caught my attention – how about you?  It could be a much smaller business but how much effort will now be required to rebuild the reputation you have lost?  How much revenue and profit has been foregone by some needless act?  How will your bankers react?

RightNow Webcast: United Breaks Guitars with Dave Carroll

Dave Carroll’s story depicts the value of great customer experience and illustrates that spending a little can save millions when it comes to your brand’s reputation.

In 2008, Dave was flying United Airlines with his band Sons of Maxwell when a passenger sitting next to the window exclaimed that the baggage handlers were “throwing guitars out there.”

Carroll’s guitar was broken. He spent the next nine months in a service maze pursuing compensation. Eventually, customer service at United Airlines told him they were closing the incident and would not respond to any further emails.

Carroll vowed to write three songs about the experience and post them on YouTube, hoping to achieve a million views with all three combined. But he did much better. He hit one million on the first song within one week, and is at six and a half million views at last count. A media frenzy ensued and United’s market capitalization dropped $180 million over the next three weeks.

Register for this live webcast and hear Dave Carroll tell his remarkable story. He will be joined by Jason Mittelstaedt, RightNow’s CMO and Bruce Temkin, Vice President & Principal Analyst at Forrester Research, for a discussion on customer experience in the age of the social web.

There’s no better way to understand how powerful the voice of the consumer has become than to attend this webcast.

View the United Breaks Guitars video.

Join us:

Thursday, December 10, 2009
11:00 a.m. – 12:00 p.m. Pacific
2:00 p.m. – 3:00 p.m. Eastern

Register Now!

See you on the 10th,
RightNow

136 Enterprise Blvd. | Bozeman | MT | 59718 | 866.630.7669 |

http://www.rightnow.com/summit/Americas/2009/presentations/dave_carroll_tues.php

What else can I say about managing media for both positive and negative reaction – the value of ensuring positive images will definitely outweigh the negative as seen here from the views of YouTube and what someone has now done.  Am I not correct in emphasizing managing positive media as opposed to the damage done from something like this?

There are countless examples of companies who do not emphasize the importance of “perception” and how the public perceives their image of one’s business.  Not training your staff to contemplate the damage that can be done by one little act will cost so much more in lost revenues and profits than any employee will ever realize.  Can this cost be managed?  You bet!  But not by standard Risk Transfer – Insurance!  Only by better training, support, etc. can you ever manage media risk which, in my mind, is a very worthwhile investment in your business.

Use expert Risk Management to reduce the consequences of a similar occurrence happening to you!  Contact the WRiskManager today – larryewinsurance@gmail.com 

Another update to my exciting week!

October 23, 2009

What is of special interest this week, my friends?  Well, let’s begin by thanking the online friends I have south of the Canadian/USA border.

One terrific connection provided me with the contact information for 50 lenders he uses in his brokerage business.  Where did this lead?  I always like to return the favor (favour here in Canada) and am now trying to introduce him to another friend who has a very interesting concept to discuss where I will relish helping both of these fine gentlemen.

This evening, I spoke with another American friend who has connections to Lenders, Accountants, Lawyers and the Franchise Industry – meaning I can emphasize Lender Reviews with the Commercial Lenders, financial issues (including employee dishonesty with CPA’s), suggested/recommended(?) insurance requirements for contracts, leases and Franchise Agreements – 3 of my enjoyable aspects of Risk Management consulting.

I also had 1+ hour of wonderful “free” motivational consulting from “Linda” today and I so appreciate that.  I’ve set-up a “fan page” (is that what it is termed?) on Facebook now – WRiskManager – just like here!  I hope these efforts to “brand” me as the North American “expert” (sorry but my competition is reluctant to utilize the internet and find it a waste of their time 😉 ) will pay huge dividends (and I am very optimistic).

Well, that appears to be it for a Thursday evening.

RISK – My 1st Post! – Well, at least it is #1 for here (and maybe better than my other attempts)

October 22, 2009

This is my first blog attempt here and I hope better than my previous efforts 🙂 .

I have just had the most amazing week in so many ways that my excitement is bubbling over, hehe.  Reason for this is that I wished one of my many online friends a Happy Birthday on Friday last week and he (Craig, you know who you are) then proceeded to offer me immense advice on blogging and setting-up my blog on this site 🙂 .  He explained that I should be blogging every time I see, meet or hear something about “risk” since that is my expertise.  Well, here goes my effort then.

So, what else made my week so spectacular?  Well, one call to a friend of mine (Mike B.) that led to a request to speak to a group of bankers, accountants, advisors, etc. and then an e-mail from another good friend of mine (Mike A.) to gauge my interest to speak for 1.25 hours early next year to a group of Managers and then a follow-up Skype message (Andy – No, not another Mike hehe) re another speech to a group of independent management advisors – this all on Friday!

I then proceeded to mentor another online friend (Victoria) who is making a career move from agent to commercial broker and I offered my years of experience and continuing guidance to assist her.  Even in the same geographic area, it is much easier to use phone/computer communication than managing the headaches derived from fighting traffic to meet face to face.

What else has happened since Friday, then?  Well, I’ve been working with a management consultant friend of mine on his one client’s insurance requirements and ensuring that they’ve been met at affordable premiums.  I’ve provided two contacts’ names/info to another contact of mine who is in need of their services, been provided a list of 50 lenders by a new online connection (sure is nice to share contacts who can recommend me) so that my work during the next week will be quite busy in prospecting.

Well, you can see where my excitement originates from, correct?

What do I do, though?  I work in Risk Management – identifying and analyzing risks, controlling and financing risks.  My expertise is derived from nearly 20 years of Retail Commercial Banking and 20+ years of Insurance/Risk Management.  I work in the realm of Legal Contracts & Leases to Financial Statements through the spectrum of Property, Liability, Income and Human Resources and include Currency, FX, Interest Rate (yes, I did work in Banking), Employee Dishonesty, Media, Trade Credit, Business Continuity and Continuation Planning, Workers’ Compensation and Occupational Health & Safety – a broad spectrum.

Where do I spend the bulk of my time?  I review various Lenders’ Loan Agreements and Borrowers’ Insurance Policies for compliance with the terms/conditions of a Loan, recommending improved security where appropriate and knowing when a particular condition may be waived, as needed.  I even was called upon by a Lender during this week to recommend whether a loan condition for a “seismic report” be required or not – the Borrower already had Earthquake insurance and was located in a zone known to have activity so that I recommended the file be notated to never allow the Borrower to not include “quake” coverage on the policy.

As you can see, a busy and interesting week.  Not knowing when to curtail my comments, I will sign off now and be back later in the week to add something new.