transfer production to another country.-Planning consents and enquiries, local authorities can take a very long time to come to a decision on planning consents.--Building time- reinstatement on site may have some difficulties.4) CONCLUSIONBusiness interruption is a form of commercial damages. Although normally part of an insurance claim along with a claim for damaged property, financial experts may from time to time be hired to estimate the losses relating to an interruptionevent. The expert’s calculations may be used in conjunction with the claim filed withthe insurance company or a lawsuit against athird party that allegedly caused the propertydamage and business interruption.Any expert asked to make such an analysis should consider lost profits (projected revenue for the loss period less saved expenses), non-saved expenses that are ongoing, and extra or expedited expenses thebusiness has to incur to reopen.Although the assignment to estimate a business’ losses due to business interruption may seem straight forward, it calls for a detailed analysis of several prior year’s income or profit and loss statements along with income, profit and loss and/or checkingstatements since the damaging event occurred.Ultimately, the three sets of losses are totaled to sum the loss incurred by the business in regard to its operations. These losses are separate from property damage claims made by the business. However, the expert must be aware if an insurance claim has been or will be made for damaged or lostinventory. Any payment for the value of the damaged inventory must be considered in the lost profits analysis to avoid double counting.An expert should be aware, this analysis may be time consuming, but can be rewarding for the damaged business becauseit means all of its losses will be considered and reviewed. Even though the business interruption loss period may be brief, the financial expert should also consider the economic, business, and competitive environment in the damaged business’ market during the loss period. In this way, the expert may provide a well-rounded assessment that provides defensible, reasoned, and detailed loss estimates.The objective of the research 1. Generally this research is based on revenue loss due the interruption might havecause the damages.2. Expense from operating at temporary location And other utility cost.Reference.A Risk Management Guide for Marketing and Management Consultants by: Warren Buffet 2003 editionRisk management guide by: Benjamin Graham 2003 edition
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