There are numerous financial risks associated with the management of any business. Like any other exposure to loss, certain financial risks are insurable and certain financial risks are uninsurable. Unlike business and operational risks, where the line of insurable vs. uninsurable is clear, the insurability of financial risks are a "moving target".

Traditional financial risks are classified as those risks associated with the financing for and financial management of a business. Including:

• Interest rate risk
• Foreign currency risk
• Credit risk (from customers)
• Credit risk (to suppliers)

Non-traditional financial risks are classified as those risks not associated with the financing of a business but, rather, those risks that have a direct financial impact on the business and are not otherwise classified as business or operational risks. Including:

• Risks from shareholder litigation
• Risks from third party (non-product related) litigation
• Risks associated with political instability (confiscation, contract disruption, war)
• Risks from regulators and other governmental agencies
• Risks associated with mergers/acquisitions/divestitures

Equity Risk Partners has devised unique risk transfer and risk sharing alternatives for clients with exposures in these areas.