Managing the risks of revenue loss.Do you have exposures and can you explain them to underwriters.

Zurich Technology Conference

Date: 26 May 2005

Marsh Ltd 2

Managing the risk of revenue lossPresentation team

Katherine Kanaga is the Property Advisory Leader for Marsh Europe/Middle East.She has been with Marsh for 20 years and works with our offices in the region to ensure that we bring the best technical expertise to every client and prospect.

Andrew King is Forensic Accounting and Claims Service Leader for Marsh Europe/Middle East.A Chartered Accountant, he is immediate past President of the Chartered Institute of Loss Adjusters and an examiner on business interruption claims.

Marsh Ltd 3

Managing the risk of revenue lossPresentation team

Alexander Schmidl is an underwriter and Loss Prevention Engineer with Munich-American Risk Partners.He has been with the Munich Re Group for 8 years and assesses and writes large commercial risks in the North American dept utilising his expertise in the aerospace industry.

Patrick Steenwegen is a Senior Underwriter with Munich- American Risk Partners.He has 12 years experience writing multinational commercial lines insurance and is currently in charge of European headquartered corporate clients. He has worked in France and Germany and has a Masters degree in Economics.

Marsh Ltd 4

Managing the risk of revenue loss

Technology companies encompass a very wide range of activities and structures

The ultimate aim of all however is to maximise shareholder return

This means maximising revenue and profit

Marsh Ltd 5

Managing the risk of revenue lossSolutions ,solutions

Comprehensive

Intelligent

Complete

End to end

Innovative

Networked

Leading edge

Partnering

Marsh Ltd 6

Managing the risk of revenue lossSolutions ,solutions

Not simple business models

Partnering: with suppliers ,with customers,with competitors,with governments.

Multinational sites , multinational partners.

Segmented organisations offering bespoke products to specific sectors , with several income streams in each segment

Marsh Ltd 7

Managing the risk of revenue lossIssues that could impact the revenue stream Loss of customer

Loss of customers or partners customer

Loss of supplier or suppliers supplier

Loss of critical site

Loss of research and development facility and /or results

Loss of intellectual property

Loss of key personnel

Loss of critical plant

Loss of customers kit

Loss of critical service suppliers infrastructure

Marsh Ltd 8

Managing the risk of revenue lossIssues that will affect a revenue loss

Key customers: how many revenue streams depend on certain customers-do we understand all the linkages to our business.

Key suppliers: what are the alternatives - are we certain that the alternative can deliver.

Terms of trade: standard or bespoke - what penalties are we exposed to.What obligations are included within legal agreements.

What is in the pipeline in terms of new contracts,new products,new customers,new markets.How far forward should you be looking.

Do you understand what the key processes and relationships are.Does anybody ?

Are you comfortable that the financial information being provided to you provides sufficient timely detail for you to be able to calculate a complete ,accurate and adequate insurable amount.

Underwriter perspective: Munich Re

Dialogue and Q&A

Marsh Ltd 11

Dialogue & Q&A

How do you characterise your BI exposure?

What are your interdependencies?

How do you quantify your exposure?

Do you need BI insurance at all?

Marsh Ltd 12

Managing the risk of revenue lossClaims issues

Have you had a BI claim - were you comfortable with your recovery and how you were treated.

Did your coverage adequately cover the loss.

Was the process transparent , explained , communicated.

Were those appointed to deal with the claim intellectually up to the task.

Did the outcome satisfy you.What about the business unit concerned and the group.

Marsh Ltd 13

Managing the risk of revenue lossClaims issues

Detail is crucial - understanding of the business processes, relationships and key risk exposures.

Internal communication with business groups is essential

Understand exactly what the policy language means

Be certain what the processes are when a claim occurs and how the carrier will respond

Be certain as to how you will respond to maintain and drive the process.