Managing risk

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Given the current economic environment, many companies are reexamining their approach to risk management. Private companies in particular, not subject to public-company regulation and often less-resourced, may conclude that paying more attention to identifying and managing risk is quite relevant. There are a number of methods to risk management and internal controls, many of which can be scaled to the size and complexity of a company's operations.

Effective internal controls don’t just help a company reduce business risk; they also:

• Reduce regulatory risk
• Provide financial-reporting benefits
• Provide operational benefits
• Can lower borrowing and financing costs
• Can help attract new business partners and buyers
• Are required for readiness for an initial public offering

Managing risk: internal controls for private companies, provides the PwC perspective on how private companies can assess risk, implement improvements, and bring value to the business.