What keeps you up at night? How do I manage my business risk?

1. Business Risk What Keeps You Up at Night? A Risk Management Seminar for Business Owners Patrick A. Haake Northwestern Mutual Financial Network Northwestern Mutual Life Insurance Company Milwaukee, WI

2. Am I taking good enough care of my employees? Some of my competitors are beefing up their benefits package. What if one of my top guns decides to leave? Losing a key employee could send me back to square one. 9:42 pm

3. Outsourcing the design of our new product line makes economic sense. But what if the quality isn’t up to snuff? The last thing I need is a lawsuit from some unhappy customer. 12:59 am

4. I could use some time off. But if I can just take my business to the next level, I’ll be able to relax – maybe even steal a whole week away with my family. In the meantime, what if something happens and I can’t work? How will I meet the payroll? The rent? My other expenses? 3:31 am

5. There has to be an easier way to protect my business… my employees… my family… my future.

9. An Integrated Approach You shouldn’t accept a “one-size-fits-all” approach. Business Owner Estate and Business Succession Planning Personal Planning Business Planning Employee Benefits Risk management

10. Without a strategy for managing risk, a lifetime of work and dreams can be lost in a flash. Getting a Handle on Risk

11. True or False? Some of the biggest risks to your business are the ones that are less obvious.

12. Protecting Your Whole Business You have more to protect than you may think.

14. Two Ways to Protect Your Business Ask yourself: Is self funding worth the financial risk? ? Self insuring a risk or Assigning it to an insurance company

15. A Proactive Approach to Risk Management Pays Source: The University of Southern California’s Marshall School of Business as described in The Proactive Position: Business Vision, Fall 2007. A sound risk management strategy can increase your business’s chances of success. Companies proactively managing risk Companies reactive in managing risk Return on assets Business lifespan Incidence of “trouble events” 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

17. Covering Your Bases Liability insurance can protect your ability to do business. Business Liability Insurance Property Insurance

18. Business Liability Insurance Key Person Coverage Property Insurance Covering Your Bases Key Person Coverage can help you protect your human capital.

19. Which is the Greater Risk? Odds of Long-Term Disability vs. Death 2.7 to 1 2.8 to 1 S & P 500 Treasury Bills 3.5 to 1 3.3 to 1 Disabilities Deaths 2.2 to 1 Source: Disability Insurance Resource Center Your chances of becoming disabled are greater than you may think. 37 27 42 47 52 Age

20. Claims Approved 2004-2006 75% of disabilities are caused by illness. By Medical Cause of Disability* *Number of claims approved by a cause of disability as a percentage of the total number of claims approved for the period 2004-2006 with Northwestern Mutual. Infectious Diseases 2% Malignant Tumors 17% Mental Disorders/ Substance Abuse 12% Nervous System 10% Heart/Circulatory 9% Digestive System 2% Musculoskeletal 35% Injuries Excluding Musculoskeletal 3% Other 10%

22. Covering Your Bases Business Overhead Protection can be a financial lifeline in times of uncertainty or crisis. Business Liability Insurance Key Person Coverage Business Overhead Protection Property Insurance

23. Evolving to Meet Your Changing Business Needs Your risk management strategy should have the flexibility to grow along with your business. startup growth maturity transfer risk management Protect against business liability Protect business from loss of owners or key employees employee benefits business succession personal planning Expanded protection against loss of owners and key employees Expanded protection against loss of owners and key employees Review/transfer protection plans Group medical plan* Group life insurance* Group disability Group benefits Basic retirement plans Selective retirement and benefit programs Employee benefit communication programs Selective disability protection Long-term care insurance Selective retirement/ benefit programs Review/transfer protection plans • Group Disability • Group Dental* • Additional group benefits • Voluntary group products Buy-sell agreement Review buy-sell agreement Exit strategy Protect income stream Protect family Retirement plan Review personal needs for owners Review personal needs for owners Estate planning Review personal plans for owners Review estate plans

27. Behind Every Great Professional is a Network of Specialists It takes teamwork to answer your business planning needs.

30. I Want Your Feedback Lastly, Thank you and sleep tight!

31. For the first time in a long time, I feel confident about the future. I know what I need to do to protect my family and my business. And I know where to go to get the support I need. Bring on the competition. I’m ready to win! 6:15 am