The Risk Cycle
Posted on June 1st, 2010 by Katina »Permalink
If you’re on the Twitter, you probably know how very cool it can be to have a trusted voice introduce you (usually via re-tweet) to somebody you might never encounter otherwise. As faithful readers know, we at Audit Trail count Francine McKenna as a long-time friend (and we happen to be a sponsor of hers, too). Of the many things we like about her, one of the most outstanding is that she’s a great resource for good writing on all manner of things that interest us.
This week is no exception, coming as it does with an introduction to Kevin LaCroix of D and O Diary. Kevin’s got a heck of a piece up right now on events that often lead to securities investigations – insult to injury investigations, he calls them. It’s a good exploration of the complicated ways that exposure to one type of risk might lead to other, different risks. So, imagine your company has exposure in, say, operational safety. Kevin’s saying you shouldn’t be too surprised when any ensuing high-profile disaster also leads to a securities class action as soon as your share price tanks. Nobody said this would be easy . . . it’s important, but it’s not simple.
In other news, KPMG and PwC are apparently considering an entry into the credit rating business. Going Concern says they aren’t serious about it, but still. Wowza. Let us know what you think about it in the Comments. Seriously.
