"Earnings consistency typically explains 25% of the annual change in share price" Source Tower Perrin. Consistency Analysis of Selected Industries.
Risk Management & Performance Reporting
So how do investors assess good risk management? They consider Board level ownership, understanding and communication of risk issues as the keys to risk management success. Investors also see very clear benefits from getting it right, including fewer negative surprises, greater financial stability and opportunity for profitability.
Investors will reward and penalise companies based on their perceptions of risk management:
82% will reward good risk management by paying a premium
61% have avoided investments because of insufficient risk management
48% have de-invested because of it.
Investors believe responsibility for risk management starts at the top with the CEO and the Board.
Investors want more openness and face-to-face communication beyond the reports and accounts, to understand risk management policies and practices.
Transparency was a top priority for 69% when making an investment, ahead of the business model and track record of the company.
How does idRisk Performance Suite (RiPS) help?
It enables you to produce risk management information that is relevant to senior managers, supports decision making and is produced using financial information that already exists within your organisation. See summary presentation below, More ...
