Thursday, November 20, 2014

The Importance of Risk Management for IPO-bound Companies

A news release posted on Insurance News Net discusses the need for companies preparing for their IPOs to thoroughly look into their risk management and compliance practices.    

“Risks, controls and compliance become vital drivers of sustainable growth, giving companies the tools to meet their new investor, market and regulatory expectations, according to PwC”

The article shares seven tips to lead a company to success through the IPO and beyond. Here are a few that stood out to us:

"Evaluate your Sarbanes-Oxley readiness and controls infrastructure
Meeting the provisions of the Sarbanes-Oxley Act represents a compliance challenge for many companies planning an IPO. Management should start planning as early as possible to understand the various compliance timeframes and strategically plan for implementation."

"Conduct a compliance risk assessment
An IPO-bound company should conduct thorough compliance risk assessment to help the organization catalogue and prioritize the full spectrum of its compliance risks, and gauge its resource allocations. A compliance risk assessment is part of a larger enterprise risk assessment that provides a detailed, overall picture of current and emerging risks to the organization."

"Elevate your governance, risk management, compliance and internal audit activities
Companies preparing to go public will need to build out their risk, controls, compliance and internal audit functions, prioritizing the people, processes and technologies that will be most valuable. When these efforts are brought together in a coordinated system rather that operating in silos, the result is not only greater in efficiency but the ability to align systems, people and culture with management’s strategic priorities."

For the full new release, click here


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