4/2/2020 1 Risk Rewarded COVID-19 and Surety Considerations CSDZ Construction Practice Virtual Townhall Series Risk Rewarded CSDZ Townhall Moderators Joshua R. Loftis Sr. Vice President, Surety Bob Bowman Surety Underwriting Manager Colby White Surety Operations Manager Brian Oestreich VP, Client Executive
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4/2/2020
1
Risk Rewarded
COVID-19 and Surety Considerations
CSDZ Construction Practice
Virtual Townhall Series
Risk Rewarded
CSDZ Townhall Moderators
Joshua R. Loftis
Sr. Vice President, Surety
Bob Bowman
Surety Underwriting Manager
Colby White
Surety Operations Manager
Brian Oestreich
VP, Client Executive
4/2/2020
2
Risk Rewarded.
Participating in the Virtual Townhall
To submit a question in writing - use the question panel.
Write your question here and click send.
You can ask a question during the presentation
Type here
Risk Rewarded
This is a Human Problem
Organizational Wellbeing
Finding Alignment
Seeking Answers Together
Welcome & Opening Thoughts
4/2/2020
3
Risk Rewarded
Contracts & Supply Chain
• Force Majeure
• Substitutions
Financial
• Overhead
• Liquidity / Borrowing resources
COVID-19 Specific Inquiries
• Impacts and action plans
• Upstream and downstream risk
COVID-19 Surety Discussions
Risk Rewarded
Portfolio Management
Reinsurance Dynamics
Understand How You are Evaluated –
Credit Scoring & Evaluation
Corporate Capital Allocation –Surety and Other Lines of Insurance
Surety Behind the Scenes
4/2/2020
4
Risk Rewarded
What’s Our Strategic Plan Now?
Risk Rewarded
What’s Our Strategic Plan Now?
4/2/2020
5
Risk Rewarded
We can improve visibility of change with
increased measurement and communication
We can control our preparation with Scenario
Planning that models:
• Backlog Delay Sensitivity
• Overhead Decisions
• Cashflows
We can proactively prepare for liquidity
shortfalls – talk to your Bank about adequacy
of current program and the CARES Act
What Can We Control?
Risk Rewarded
Lean into your Work-In-Process for Financial Modeling
• Accuracy and Frequency of Backlog Metrics from the Field
• Predictability of Project Delay or Shutdown
• Timeliness of Monthly Financial Reporting
Consider how you measure Revenue Acquisition
• Define the horizon for overhead decisions and outlook for 2021
Can you Shift Fixed Costs to Variable Expenses
• Start with Allocation Related Costs
• Example: Owned vs Rented Equipment
• Example: Variable Compensation for Business Development