Instead of learning what these controls are as they go along, managers will have to have access to clearly worded definitions of what the controls are. Secondly, companies will need to work out how they embed the review processes of the control systems that they will operate. This is one obvious question that companies will need to ask. More importantly company risk managers will have to ask themselves what thought processes they want their managers to go through in the review process. In answering these questions companies will have to rethink their philosophy and practice of risk management.
ART is a means of financing risk exposures without recourse to conventional insurance.
ART comes in many forms. The ART market, which once excluded the insurers, is now attracting them. Syndicates at Lloyd's have started to offer products that are basically ART-based and they include policies that will insure against a third party not supplying on time. Some companies are also buying policies that will insure a guaranteed income. These trade-related policies were unheard of five years ago says Ketley.