Risk came at CFOs from seemingly every corner in 2010. Two major global brands faced reputational disasters, as Toyota’s safety problems and BP’s record-breaking oil spill grabbed headlines. The unstable global economy made news throughout the year, prompting finance chiefs to evaluate their currency risk exposures and consider the impact of an array of global trade issues on their businesses. Regulators also kept finance chiefs busy wondering about so-called little GAAP and proxy disclosures.
Many finance executives monitored all of these issues with significantly reduced staffs, thanks to layoffs in finance and risk-management departments during the recession. All in all, 2010 was a busy year for those charged with minding risk.
Currency Risk
As currency risk intensifies, companies of all sizes are taking steps to protect cash flows.
By intervening to stop a strengthening yen, Japan’s central bank throws uncertainty into the forex strategies of U.S. companies.
The ongoing European debt crisis creates new risks for CFOs.
Reputational Risk
In the wake of the Toyota recall, more companies grapple with how to manage something they can’t measure.
What can the BP oil spill disaster teach finance executives about risk?
Regulatory Risk
Private U.S. companies and their stakeholders may soon get the “little GAAP” they have long sought. Could this dream-come-true turn into a nightmare?
Some experts say audit committees take on too many risk-management duties. The SEC’s new proxy-disclosure rule should shed more light on the issue.
SEC Pushes Companies for More Risk Information
The regulator pushes back on companies’ risk disclosures and considers changing its related rules.
Other Risk-Management Stories
Stating up front how much risk a company is willing to take on can save that company a world of trouble, two finance chiefs maintain.
Have Risk-Management Cuts Gone Too Far?
During the recession, companies slashed their risk costs by 3.1%, a recent study found. As a result, a major catastrophe could test their ability to respond.
Many companies have no intention of adopting enterprise risk management, a survey finds, while many others have less-than-robust ERM processes.
