CRM structuring and risk mitigation, combined with the intelligence and risk-sharing expertise of our partners, aims to create a risk transfer of the operational, third-party and where applicable intangible design or construction and pre-revenue project or business elements.
These mechanisms insure the same financial outcome from the project, or business operation, cost effectively and more comprehensively by fully insuring both the buy, operational and sell sides of the project. In essence Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA).
CRM, in conjunction with their partner insurance advisers and Lloyds of London identify and structured an all-encompassing umbrella of co-joining policies that will identify and remove all known and unknown risks from the project’s buy, operational and sell side streams.
Thereby, providing coverage that effectively convert project or business risk into credit risk at EBITDA level.
The project risk transfers are broken down into three phases, the first being the Design or Construction Phase, second the Operational Phase, lastly Third -Party risk.
All counter party risk providers are regulated, investment grade entities, and minimum A rated by global rating agencies.
CRM utilise proprietary techniques and structures in combination with a limited number of market products to provide combinations of principal and revenue guarantees from third-parties providers or existing client preferred financial institutions.
Any business, investment or lending decision predicates that the proposal in question will generate revenue over and above costs to the project owners, corporate borrower, their lenders and investors; and the residual revenue is sufficient to repay debt and generate acceptable profit levels.
Therefore, the key design element throughout the life of the “business” or “investment/loan” is both the loss of revenue, and the guarantee of operations to produce said revenue.
Essentially, CRM designs certainty of Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) allied to project and business risk conversion to credit risk.
CRM design tailor-made risk mitigation and transferred business models; protecting assets, investors, lenders and clients .