Updated on August 4, 2017 by admin
Financial Performance Measurement
The motive of every business is to achieve the bottom line of maximum financial benefits. In order to comply with the same, companies have come up with financial performance measurement techniques. The very idea is to ensure that no matter what the resources do and the way they function, they would have to show profits in the profit and loss statements. It is carried out generally in three different steps. They have been mentioned as follows:
Firstly, it encompasses selecting the goals of the organization.
Secondly, and also as the most important part, it is to consolidate the measurement of information with respect to the performance.
Finally, the required changes made by the managers so as to serve as a remedy over the weak links in the financial charts of the company. So, one can say that the financial aspects of performance measurement is basically sales driven. There are certain milestones that companies set for employees. A deficiency in being able to fulfil even a certain process can be harmful for the position. So, this method of performance measurement is also known to show certain insecurity for the employees. Hence, it might not give the most authenticated results. Business Performance Management is by and large measured by the financial aspects of performance measurement. The specific techniques for the same have been mentioned as follows:
Approaches to Financial Performance Measurement
Economic Values Added
This method deals directly with the economic profit of the organization that goes directly into the balance sheets. This method in other words can be used to measure the Net Operating Profit after Taxes. There are also certain adjustments that are made in the calculation of Economic value added so that the companies can make it more synchronized with the profit entry in the profit and loss statements. This method is generally used by lower stature companies these days. The reason for the same is that at the moment, the companies can afford to look at the business functioning only from the financial perspective. There is much more to achieve.
The fundamental law of economics says that management would have to make the most from the least resources that are available to them. In regard to keeping with the statement, the companies generally identify the processes that are in the system and then classify them as separate activities. Followed by this, the companies assign separate costs to each of the activities. This can be done in the form of direct and indirect costs.
Reason for shift from Financial to Non-Financial aspect
In other words, we can say that this is also a form of performance measurement on the basis of finance aspects. One can assign costs to each of the activities, but then there are always, restrictions on the use of the activities that are highly expensive. Once, again, this method would not be applicable in the long-run. The reason for the same is that this method forms a hindrance to the long-term …
Updated on August 10, 2017 by admin
1. Builder’s All Risk Insurance:
Usually during the contract negotiation stage, when it is as yet unclear as to which party will be accepting which liabilities, which party will be responsible for procuring the insurance and absorbing the deductibles, etc., both parties look more deeply into the breadth of available BAR coverage.
We can say that Builder’s Risk Insurance for the energy class of business provides coverage under three different forms:
Is the protection provided under all BAR policies the same? No! For a comparison between wordings please contact a trusted insurance broker of your choice.
2. War Risks and Strikes, Riots, Civil Commotions (SRCC):
a. Institute War Clauses Builder’s Risks 1/6/88 (CL 349) –
Coverage incepts once the vessel is launched (or wet) and provides coverage for loss of or damage to the insured vessel / rig caused by:
b. Institute Strikes Clauses Builders’ Risks 1/6/88 (CL 350) –
Provides coverage for loss of or damage to the insured vessel / rig caused by:
We recommend that this coverage be amended to include Vandalism and Malicious Mischief.
Please also review if the terrorism coverage provided under this clause is either restricted or broadened, or if there are any other applicable clauses such as Sabotage & Terrorism Endorsements. In any case, be sure that the coverage afforded is adequate for your Client so your Client makes an informed decision.
3. Liability – Insurance coverage that protects an insured against claims made by third parties for damage or injury to their property or person. These losses usually come about as a result of negligence of the insured. In marine construction, this policy is referred to an MGL, marine general liability policy. In non-marine circumstances, the policy is referred to as a CGL, commercial general liability policy. The construction contract should determine which parties are liable in which instances for losses of Third Party Liability nature.
Insurance policies can be divided into three broad categories: