Knowing that your firm has a comprehensive value protection program in place will provide you with a great sense of confidence and security.
In our turbulent global economy, where bad news becomes viral in a matter of seconds, designing and implementing strategies for managing risks is essential. Having appropriate plans in place can prevent potential problems from occurring, and can serve to mitigate the harm to your firm and its portfolio companies if they do.
By creating a robust risk management plan, executives at private equity firms and their portfolio companies can increase the probability that their organizations will be able to withstand the impact of a potential crisis, regardless of its nature. There’s no question that creating and maintaining a comprehensive risk management program is a time-consuming task that on the surface has little value creation payoff. However, failure to implement an appropriate program can end up costing your firm a far greater loss of resources, value, and reputation.