All entities face uncertainty. The challenge for management is to determine how much uncertainty to accept. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management (ERM) enables management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value.

A captive can provide an effective means of funding self-insured risks, lowering the cost of certain types of insurance, and maintaining greater control of the risk management process, while providing long-term stabilized pricing that can issue customized policy manuscripts – independent of the insurance industry’s market cycles, where the uncertainty of a bona fide claim being honored is minimized.

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A risk management framework

ERM helps management ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the entity’s reputation and associated consequences. The following capabilities inherent in ERM help management achieve performance and profitability targets, and prevent loss of resources.

Types of insurable risks

Enterprise risk management is the capability of an organization to understand, control, and articulate the nature and level of risks taken in pursuit of a risk adjusted rate of return. Insurable risks can be grouped into multiple categories.

We work with management to develop a strategy to maximize value by striking an optimal balance between growth and return goals and related risks, and efficiently and effectively deploy resources in pursuit of the business’s objectives.


Working with your management team, Captive Planning identifies events that may positively or negatively affect an entity’s ability to achieve its objectives and performance goals. Potentially negative events represent risks that provide a context for assessing risk and alternative risk responses. Potentially positive events represent opportunities, which CPA can assist management in channeling back into the objectives of the business.


The identified risks are ranked by determining the risk magnitude, which is the combination of likelihood and consequence. Generally, if the magnitude or severity of the risk under consideration is high, the risk response needs to be strong (mitigate, transfer or avoid). Captive Planning works closely with management to determine if certain risks should be retained by the business, transferred to the commercial market, or underwritten in a captive.


Once risks are identified, we determine the likelihood and consequence of each risk. This will include knowledge of the factors critical to success and the threats and opportunities related to the achievement of objectives. This allows CPA, in conjunction with management, to develop an understanding of the nature of the risk and its potential to affect the business’s goals and objectives.

Control & Monitor

We work with management to establish and implement policies and procedures to help ensure the risk responses are effectively carried out. Relevant information is identified, captured, and communicated to enable people to efficiently carry out their responsibilities. Over time, the performance of the risk management strategies are continually gauged in order to provide a context for considering risk that may be scalable over time.