Total Cost of Recall: Determining the Risk Costs Generated by Product Recalls
Determine and validate the potential total costs of product recalls: with Funk’s expertise in the realm of total cost of recall, we analyze all relevant cost items and develop tailor-made insurance solutions.
In order to remain competitive, companies must modularize and standardize product components. This allows them to save costs and organize efficient processes. However, this also means that huge quantities of goods are usually affected in the event of a fault in production or manufacturing. This increases the risk of product recalls, product warnings, and safety notices. At the same time, industries are increasingly outsourcing development and production tasks to external contractors, which makes it more difficult to keep track of risks. Many companies therefore underestimate their product liability and recall risks. In practice, the sums insured, deductibles, and scope of cover of the policies often do not correspond to requirements. With Funk, you gain transparency about potential risks, total costs, and suitable insurance solutions.
This is how we increase your risk transparency and optimize your insurance cover
Funk provides support in identifying the risk of recall costs and in designing suitable insurance cover.
Analyzing and identifying the dominant recall cost drivers and risk exposure
Joint product- and value-added-related scenario development
Validation/adjustment of coverage taking into account the results
We offer advice and help devise targeted strategies for your company’s recall risks
During the risk review, our Funk experts take into account technical factors of the recall risks, but also – if desired – of additional capital and liquidity burdens. We obtain the information for this through workshops with the product/project managers and the respective departments of your company.
Use ‘Total Cost of Recall’ as an effective tool for cost control
- Transparency with regard to recall cost risks and their impact on your company
- Optimization of the cover structure, taking into account your company's risk-bearing capacity
- Utilization of potential cost savings from the optimization of total risk costs
Reduce the overall costs of your product recalls and optimize your operative business processes
Arrange a non-binding consultation on ‘Total Cost of Recall’ now!
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