Group of risks impacting on strategy and long-term plans of the organisation. The risk groups include: market and customer trends; economy/ policitical stability; competition; tactical decisions (investments, mergers, etc.); achieving predicted performance; major catastrophe/incident, including reputational risk; ethics, culture; corporate governance. They demonstrate the need for holistic risk management.

A performance bond that guarantees to a highway authority that a building developer will fulfil his obligation to construct roads on the estate or area of his development. The bond is usually 100 per cent of the construction costs involved.

A demand on physical or mental energy. It can cause a breakdown in a person’s physical or mental health. Employees, whose stress is caused by their employers’ breach of duty, may bring actions in the civil courts for damages or, if linked to dismissal, compensation may be awarded by an employment tribunal. The risks come under employers’ liability insurance and/or employment practices liability insurance. Employers need to include stress in their risk assessment and educate employees in stress management.

The Institute Strikes Clauses (Cargo) (1/1/82) cover loss or damage to cargo by: (a) strikers, lockedout workmen or persons taking part in labour disturbances, riots or civil commotions; and (b) any terrorist or any person acting from a political motive. Under the Institute War and Strikes Clauses (Hulls – Time) similar cover is included with the addition of damage by ‘any person acting maliciously. Shipowners face the prospect of cover being cancelled at short notice but voyages underway are permitted to complete their transit.

Arrangement between the claimant and the defendant’s liability insurer whereby the lump sum payment for future losses is replaced by periodic payments for a fixed period or until the claimant’s death. They may be index-linked, varied or ‘structured’ during the period. The insurer uses the ‘lump sum’ to buy an annuity that funds tax-free payments to the claimant. The court has no power to order such a settlement (Damages Act 1996, s.2).

UK: a method of settling claims in respect of damages for personal injury under which the casualty insurer, instead of paying a lump sum to the plaintiff, makes a series of periodic payments which are usually funded by the purchase of an annuity on the life of the injured person.
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MEDICAL, US: Agreement to pay a specific amount at regular intervals instead of a lump sum payment.
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An alternative to lump-sum settlement of bodily injury liability claims or court verdicts. The claimant is paid specified sums at specified intervals as compensation for loss of income, medical and rehabilitation expenses, and pain and pain and suffering until a designated future date (possibly the claimant’s death). Many structured settlements are financed through insured annuities, and payments can be adjusted for changes in price levels or in the claimant’s situation.