REPORT OF THE BOARD OF DIRECTORS
Financial Operations: The Treasury Department manages with distinctive competence to monitor the financial markets, analyze data, study market trends, follow up changes in the exchange and interest rates in order to avoid the risk of inflation, credit risks, fluctuations in the exchange and interest rates. By doing so, it will determine the best ways to reduce financial risks and explore the avail- able investment opportunities to utilize the company’s surplus cash funds. Information Security: The Information Technology Department adopts the best practices in the areas of security system and protection of computer hardware and software used in the field of information and communications. In this regard, a set of software and means of security are currently in place to achieve full safety and to safe- guard confidentiality of information against attempts of cyber crimes. Operations: The Insurance Department is dedicated to update the emerging insurance coverages and techniques to minimize cost without compromising the quality of the coverage is one of the main goals of the department. The Insurance Department continually improves the insurance coverage and avoids redun- dant coverage areas in its policies. The Department’s strategic plan when the fleet number will grow and new competition are required to ensure the best coverage combined with the best available premium is provided. The Department will monitor the progress of insurance providers with regard to their financial strength, ability to meet its liability and its technical ability. NSCSA participated with two protection clubs and held a variety of agree- ments with insurance companies in the following areas: • Marine insurance - includes insurance coverage of the fleet and equipment as well as the crew and cargo carried on board the vessels. Civil liability and the consequent marine risks whereby certain countries stipulate that to enter their ports, the vessels must have proper insurance coverage consis- tent with the requirements of these countries. • Non-maritime insurance - includes comprehensive coverage of the com- pany’s offices, buildings, vehicles and personnel as required in addition to medical insurance for the employees in accordance with the guidelines of the Health Insurance Council. • Protection & Indemnity Clubs - The size of the company and its fleet en- abled it to be an active member in two of the largest clubs for protection in the United Kingdom. These clubs cover risks arising from the accidents of ships and damaged cargo. Being a member of the clubs, NSCSA is entitled to vote on certain resolutions of the Club related to protection and compen- sation strategy. This membership will be of great benefit to the company through the exchange of experience and avoiding exposure to any additional contingent costs.
The National Shipping Company of Saudi Arabia Annual Report 2010
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