We were having a discussion on how best to explain to remarkable benefits of enterprise risk management with a captive insurance company, when Tom King, Principal and Founder of CIC Services proclaimed, “This really is the best self-insurance money can buy!”
Tom was referring to the chart below that visually depicts
For many business owners and CFOs, risk management is not an enjoyable topic. So, how can Enterprise Risk Management (ERM) surge wealth? After all, a complex nomenclature like “Enterprise Risk Management” sounds like code for “spend more money.” However, the opposite is the case. Developing and executing a more mature risk management approach – described as ERM – will almost always increase the total wealth of a business and its owners, while better managing risks.
Over the years, entrepreneurial thinking has created tremendous wealth in the United States, fueled upward mobility, expanded the middle class and provided a standard of living that would have been unimaginable to America’s founders. This same entrepreneurial spirit
Over time, taxes can take a heavy toll on a business and its owners. Year after year, profits are stripped away to pay taxes often resulting in a business that is less prepared for the challenges and risks it may face in the future. The good news is that, thanks to Congress you don’t have to choose between paying taxes
I was on a hike in the mountains, when my children jumped on a log on the side of the trail. It crumbled under their weight, and we realized it had been hollowed out by insects and termites. The log looked solid enough to hold their weight, but clearly wasn’t. This log reminds me of a lot of small and mid-size businesses.
Hollowed out businesses are poorly positioned for long term survival. Excessive taxes can take a heavy toll on the economic viability of a business. This is particularly true for small and mid-size