Modern international fund board’s face a wider range of risks than ever before. Directors need ever better data, advice and support in understanding, managing and financing their governance risks.
The Thorndon Board Process Support service is designed to prepare and equip directors and boards to meet this challenge.
Thorndon is pioneering the provision of independent expert support focused on an holistic approach to provide directors with:
- a detailed understanding of the risks they face
- complete clarity on the arrangements of indemnification on which they collectively and individually rely
- timely information regarding changes in the governance risk environment
- expert, independent support and advice in the selection of broking support and the purchase of D&O insurance
- expert, independent support and advice in responding to any risk events that arise
The outcome of this will be safer governance and better decision making.
What we deliver
1. An initial review and annual health check
- the fund and its group structure, along with the make up of all boards involved
- the arrangements with all other parties involved
- the documentation of all indemnity arrangements
- the insurance arrangements in place
- the documentation of all risk mitigation arrangements supporting directors
From this we produce an onboarding report for submission and discussion with the Directors, providing them with an clear view of their risk environment and mitigation factors and enabling them to make informed decisions with confidence.
2. D&O renewal support
- support the Directors, company secretary and administrator in collating and preparing renewal information
- identify and include improvement proposals in cover
- work collaboratively with the brokers to facilitate their understanding of the information and its presentation to underwriters
- assist the directors in the assessment of terms and conditions of renewal, in particular identifying any weaknesses, gaps in covers, onerous warranties or conditions, and significant changes from the previous year
- provide market-informed insight into the competitiveness of the terms proposed
From this we provide clear technical advice regarding the fitness for purpose and value for money of renewal terms and, where necessary, what further steps might be considered to improve matters.
3. Board / director support – Thorndon Club
- support individual directors on an ad hoc basis
- regular Club events at which current hot topics are discussed amongst our client directors on an informal and “Chatham House” basis
- regular technical briefings on developing issues and key risk issues
- ad hoc enquiries concerning fund / group developments and their risk / insurance implications
From this directors gain the opportunity to develop their risk insight both from our input and from their interaction with their peer directors.