Managing risk
March 2010
At a glance
This PwC publication discusses how enhanced internal controls play an essential role in risk management for private companies.
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.