CASE STUDIES

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Manufacturer entering the export market in a new territory.

Manufacturer entering the export market in a new territory. Contract for the product included bespoke design and construction, shipment, installation, testing and training of local employees prior to transfer of the equipment whilst maintaining a long-term service agreement.

 

External specialist finance was required for the initial two phases which included Performance and Completion Bonds and loans to enable the manufacture of the key components and purchase from separate suppliers worldwide. Finance was available subject to guarantees from the business and/or insurance policies to pay the manufacturer should something not go to plan.

 

Holtarka met with the client and the project team prior to reviewing the sales, construction and supply contracts in concert with the client’s internal team and their external lawyers. Budgeting discussions included probable planning and insurance options with the necessary legal and finance costs.

 

A regulated specialist insurance broker was appointed to approach insurers for the different options and to offer non-binding terms for the client to review prior to deciding which was appropriate to their needs.

 

Financiers were presented with the risk plan, some of whom introduced to the client by ourselves, resulting in different competitive bids to support the contract for its entire seven year span.  

 

Project completed as contracted including a delayed construction due to supply chain issues, which were met by one insurance policy. Manufacturer subsequently won other similar overseas contracts using a similar template with Holtarka retained as the “in-house” independent risk consultant.

 
Image by Roman Koester
SME commodity trading firm unaware of broad risk mitigants

SME commodity trading firm with strong experience in their sector but who were unaware of broad risk mitigants. At the start, the company purchased on a minimum only basis, approved by the Main Board Directors and the Chief Finance Officer. Financing costs and access were restricted due the company being new in a challenging environment.

 

Our consultancy review of the company operations and procedures included how their goods were bought and sold, seasonality, the basis of pre-payment to suppliers, the basis of re-payment by customers and the movement and storage of goods including shipping. The company’s cost of financing and covenants of funders were reviewed in addition to their framework purchase and sales countries per territory. The NED style approach that we implemented enables effective covenants of funders were reviewed in addition to their framework purchase and sales countries per territory. The NED style approach that we implemented enables effective in-house review rather than purchase only transfers to third party providers (insurers/brokers/adjusters/recovery agents).

 

We put a framework operational checklist in place with an external review of purchase and sales contracts. These operational minimum standards resulted in less wastage and greater profitability. We also enabled the company to buy realistic risk purchase coverage from rated insurance providers with products to match operations, resulting in a transfer of risk from the company’s own capital to an external third-party balance sheet for a known cost. We developed a business continuity plan which identified the company’s true best- and worst-case exposures, enabling the SME to access more funds to support the business at a lower cost, increasing their profitability.

 
Canary Wharf London
International Non-Government Organisation (NGO) insurance

We worked with an international Non-Government Organisation (NGO) operating in all areas, who found that in some countries and territories there was no local or traditional insurance available for their assets. Operations were funded based upon an annual budget with the hope of increased funding based upon specific requests to their suppliers and funders. All costs to date were held on the balance sheet with internal reserving and scenarios for worst case situations built operationally with no secure pre-agreed external funds for any consequential increased costs or losses. Their cyber risk was checked internally with no external review.

 

Holtarka created a Due Diligence Bridge between Operations, Finance, Legal and Insurance through on-site meetings and examination of the company’s current procedures and plans. Our review led to a central co-ordinated understanding of all prior plans and procedures and we provided a revised approach reducing costs and management time. A specific insurance product was designed for the NGO with internal retained risk and catastrophe financial limits purchased to cap any downside. We took a similar approach for their cyber needs.

 

Thanks to the framework put in place by Holtarka, an external consultancy stress-tests the operations and procedures with revision on a continual basis to fine tune the bespoke offering for the needs of the NGO as their own activities change. Management now have a central internal reference point which speeds activity at a reduced cost with pre-determined financial outcomes.