Turned Around Under-Performing Finance Departments

The clients’ commercial environment had changed due to a combination of market forces and regulation. The legacy finance departments were unable to produce suitable management accounts and struggled to meet statutory deadlines. This ultimately led to criticism by the external auditors. Greenwood Consulting was able to help the client by:

The clients’ finance departments are now operating efficiently; produces management accounts that guide strategic thinking and receive positive feedback form the external auditors.

ICA Submissions Including Models And Supporting Documentation

Greenwood Consulting designed the models for several ICA submissions. The complexity of the models varied proportionality with the client’s business. For one client all that was need was a simple stress test, for one an examination of a various scenarios and business threats. The largest clients’ needed a full stochastic DFA model. These were constructed in excel using VBA and @risk. These models have proved to be robust as they are still in use and will remain so until Solvency II is fully implemented. Greenwood Consulting produced the bulk of the supporting documentation, especially those sections relating to risk identification and management.

All of these submissions were approved by the FSA who accepted that the capital calculated by the model was appropriate. The FSA further stated at an industry forum that they preferred the treatment we had adopted for certain risks compared to other submissions.

Implementation Of A New Insurance Management Information Department

The existing Management Information System (MIS) was poorly managed and relied on undocumented manual procedures. The problems were highlighted following the resignation of key member of staff. At the year the company had difficulty evaluating the reinsurance recoverable and other figures. This caused problems both in making the recoveries and in drawing up the accounts. Phil recruited suitably qualified staff who were able to put in place a fully functioning MIS. This meant that the company was able to make its reinsurance recoveries, have accurate data for the accounts and, more importantly, have reliable information to manage the business. Phil ensured that the new MIS was fully documented and automated. This meant that the department was able to concentrate on providing information to managers confident in the robustness of the system.

Introduction Of A Pricing Tool

This involved commissioning actuaries to perform a cross correlation exercise to establish the historic cost of the risks underwritten. Phil’s role was to determine the appropriate granularity and to supervise the data cleansing required before suitable data could be used. Phil was responsible for interpreting the reliability of the results for the underwriters and general management.

Designed A Business Model That Would Allow Strategic 'What If' Planning

Using the advanced features of Excel Greenwood Consulting designed a dynamic business model for a client.  The model allowed the management team to evaluate the effect of a variety of business plans in real time. The model included statistical modelling so that the client to see the best possible, most likely and worst possible outcomes and an indication of the chance of each outcome. This meant that the client could plan a strategy based on a though understanding of the risk/reward balance.

Evaluated A Variety Of Business Options

An SME client was looking to expand their operations.  Greenwood Consulting produced a report detailing the various options eg franchising, acquisition etc.  The benefits, rewards and risks of each option were evaluated together with a projected cash flow and profitability analysis. On the basis of this report the client was able to decide on the best way forward.

Raising Finance

Greenwood Consulting successfully recapitalised a lifestyle business through the issue of preference shares. This put the business into the position to become a growth company.

Greenwood Consulting also advised a Radio Company on how to draw up and present their business plan for Venture Capital funding.

Investigated Sources of Finance For A Start Up

In the current climate traditional financing is in short supply. For this start up Greenwood Consulting outlined the various options, including government schemes, to obtain the finance required to launch and support their brand.