Publicly Held Companies
ICA has served national, international and foreign publicly held companies for over sixty years in nearly every industry, including some of the largest Clients in real estate and development, REITS, hospitality & entertainment, retail, chemical, pharmaceutical, manufacturing, healthcare, financial institutions and other industries. As one of the most diverse categories of business, publicly traded companies are exposed to risks that other types of businesses do not face, mainly that of ownership by a diverse group of individuals that own the company’s stock. Therefore, the pressure on management as well as their focus is on maximizing the value of their company’s market capitalization.
Decision makers of public corporations who understand the importance of managing the interests of their organization, as well as those of its shareholders, must also understand the scope of their risks that create probable causes of action. For instance, one breach to a publicly held company’s data may critically affect the finalizing of a Merger or Acquisition. See our Mergers and Acquisitions Consulting services.
In today’s world, exposures facing public companies include a growing risk of cyber intrusion, loss of data, non-compliance and regulatory issues, employment exposures and loss of key personnel by poaching or their demise, among other exposures that may directly or indirectly damage or cause their reputational harm. For instance, executive management, Board of Directors and other decision makers acting in their capacity are held to a higher standard of care as responsible parties to their shareholders, and acting as fiduciaries to parties where their financial obligations to others have been created by law. For example, a large manufacturer with facilities or suppliers abroad, making products using undocumented laborers or minors could plummet the manufacturers’ share prices upon discovery, if left unmonitored by management. See our Risk Management for Directors and Officers Services.
Therefore, the parent corporation’s decision makers are required and constantly improving their audit procedures and controls, which include exercising risk management due diligence to ensure that their exposures are addressed by management before such information becomes public. If not, their stock price will reflect stockholder disapproval. It is therefore imperative for decision makers to first know what risks expose them to loss, and the alternatives along with their attendant costs, available to them for actively managing their risks. ICA’s Risk Management Consulting – Comprehensive Service will help them find these answers.
ICA also provides specialized services that public companies typically request when seeking assistance for a comprehensive insurance review of their insurance program as well as Enterprise Risk Management. Therefore, decision makers of publicly held corporations should familiarize themselves with ICA’s Risk Management and Insurance Coverage Analysis services as well as ICA’s Enterprise Risk Management Services.
The below excerpts from client testimonials speak to the value that public company decision makers understand, after employing ICA as their independent risk management watch-dog:
“Besides the annual D&O and package renewals, which is one instance where ICA really adds measurable value, I always feel that my insurance experts are only a phone call/email away.As a public company CFO, knowing that I can rely on ICA to support my team and eliminate blind spots is extremely valuable.” – Public Company Client
“They held a meeting during which they explained to all of our senior executives exactly how each possible loss scenario would play out from an insurance perspective. This was a huge learning and eye-opening experience for all of us, and we were reassured once again of ICA’s expertise.” – Public Company Client
Contact ICA for a comprehensive list of client references.