Publicly Held Companies
ICA has served publicly held companies for over sixty years in nearly every industry, including some of the largest real estate and development industry clients, hospitality, entertainment, retailers, chemical, manufacturing, 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 coverages and gaps, or areas of risk 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.
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, among others that may directly or indirectly damage the entity, or create large retailer reputational harm. For instance, the degree of risk to the 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 in circumstances as fiduciaries to parties where certain financial obligations exist. For example, a large manufacturer with facilities abroad making products by use of undocumented laborers or minors, could plummet the manufacturers’ share prices upon discovery, if left unmonitored by management that could create an unaddressed exposure to loss.
Therefore, the parent corporation’s decision makers may find it necessary to implement better audit procedures and controls, and exercise routine 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 Audit will help them find these answers.
ICA also provides a specialized service for companies planning to merge, as well as for distressed companies undergoing consolidation, or those seeking assistance if undergoing reorganization or bankruptcy. Therefore, decision makers of publicly held corporations may also wish to familiarize themselves with ICA’s Mergers and Acquisitions Service as well as ICA’s Expert Witness Service.
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.