An IRO's Critical Role in Corporate Events
For a company going through an enterprise-changing event, in-house experience and disciplined preparedness are the keys to optimizing shareholder value. Precious time is wasted during a major acquisition or corporate crisis identifying the few go-to people who can navigate corporate obstacles and locate critical information quickly during the most trying of times. And very few people are around who have the true trust of senior management and great gut instincts to anticipate the market’s potential interpretation of a situation. The investor relations officer (IRO) is in a perfect position to play this role. But, frequently, the IRO is an underused resource.
Management, bankers and other advisers often fail to engage IROs early in the corporate events, instead tapping them in the latter stages to execute a tactical plan. The IRO should have a seat at the table from the beginning. This can save time and money as well as diminish the chance of misstep. For the best result, IROs must be ready long before a crisis, creating tools in their daily work that will be critical when the chips are down.
The following explains how the IRO can be used best in a crisis as well as the tools management should know the IRO has at the ready.