KnowledgeLeader Blog

Communicating With Shareholders: What You Need to Know

Posted by Protiviti KnowledgeLeader on Fri, Feb 15, 2019 @ 11:36 AM

Communicating with shareholders is about capital – the ability to access either equity or debt at the lowest possible cost. By understanding investor motivation and maintaining relationships within the investment community, companies are strategically positioned to address operational funding issues proactively and thus can exercise greater control over the capital formation process. By identifying sources of capital, world-class companies can maintain capital structures through a mix of long-term debt and equity funding options at the lowest possible cost.

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Topics: investments and foreign exchange, audit committee & board, accounting/finance, financial reporting, performance management/measurement, KL Tools, Mergers & Acquisitions, communication, kpis

Currency Risk: The Purpose and Risk of Money

Posted by Protiviti KnowledgeLeader on Fri, Dec 14, 2018 @ 01:14 PM

What is Money?

People may say that “money is the root of all evil,” but is it? It may be best to point out that the original quote is better expressed as, “for the love of money is the root of all evil,” which more properly conveys the idea that money is just a thing and not evil itself, but greed and excessive desire for money can be judged morally.

Enough philosophy – let’s get down to brass tacks. Money is useful.

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Topics: enterprise risk management, risk assessment, investments and foreign exchange, accounting/finance, cash and treasury, performance management/measurement, KL Tools, KL Publications

What is Financial Instrument Risk?

Posted by Protiviti KnowledgeLeader on Thu, Jan 25, 2018 @ 05:13 PM

""What is Financial Instrument Risk?

Buyers and sellers may enter into sub-optimal financial or commodity instrument structures that have been standardized for efficient electronic trading. Conversely, buyers and sellers may enter into transactions where some trade terms were not anticipated due to shortcomings in the electronic communication means portraying the transaction.

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Topics: compliance, investments and foreign exchange, financial services industry, energy & utilities, performance management/measurement, KL Tools

Settlement Risk: Using Key Performance Indicators to Mitigate Exposure

Posted by Protiviti KnowledgeLeader on Fri, Jan 12, 2018 @ 09:59 AM

Settlement risk, in its simplest form, is the risk that one party won’t hold up their end in a transaction. There are several reasons this can occur, including time delay, system failure or default, and can also include risk associated with unexpected cost and/or administrative inconvenience.

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Topics: investments and foreign exchange, performance measurement, risk management, settlement risk, cash and treasury

Risk Management Beyond Borders: Protiviti's Tips for Country Risk

Posted by Sharise Cruz on Wed, Aug 14, 2013 @ 11:10 AM

Country risk comprises the various risks of investing in a foreign country that can lead to either investment impairments or reductions in returns on investment (ROI). Investment impairments may arise from confiscatory actions by a sovereign (e.g., nationalization of the business or expropriation of assets). ROI reductions may arise from discriminatory actions by a sovereign directed to the company, a targeted industry (say, energy or banking) or companies from certain countries (e.g., additional taxation, price or production controls, exchange controls, currency manipulation, expansion controls, performance requirements and other regulations). Both may arise from destructive or disruptive acts by others (e.g., violence, terrorism, war, strikes, infrastructure deficiencies, kidnappings or physical phenomena). The primary objective of managing country risk is to protect company investments in foreign markets and sustain acceptable investment returns.

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Topics: Protiviti, enterprise risk management, risk assessment, Cross-border & Non-US issues, Board Perspectives, country risk, investments and foreign exchange, asset management

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