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Risk management after an IPO-The impact on business performance - EY - Global

Risk management after an IPO

The impact on business performance

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Compound annual growth rates 2004 – 2011* by risk maturity level
How does risk management drive financial results?
*2011 YTD reported as of November 18, 2011
Source: Ernst and Young's Turning risk into results report, 2012
Key research study findings

Companies with more mature risk management practices outperform their peers fi nancially. In our recent study, we found that companies with the most mature (i.e., the most sophisticated) risk management practices generated the highest growth in revenue, EBITDA and EBITDA/EV.
Done well, risk management enables an organization to seize opportunities ahead of its competitors.

Excellent risk management involves more than just thinking harder about “what might go wrong.”

If executed correctly, a risk management program can be a driver of growth and business performance, enabling a company to take better-educated risks.

A company that knows how to take risks in a more calculated and controlled manner than its rivals, customers or suppliers will be able to find sources of profitable value. Our research shows that 96% of company executives believe strong risk management has had a positive impact on their long-term earnings performance.

Compound annual growth rates 2004 – 2011* by risk maturity level


How does risk management drive financial results?

2011 YTD reported as of November 18, 2011
*Source: Ernst and Young's Turning risk into results report, 2012















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