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Risk in Context Podcast: Managing people and insurance risks throughout the IPO journey

In this episode our hosts discuss the multiple challenges that companies may face during their IPO journey, and share strategies for mitigating these risks and building a robust risk management and insurance programme to protect the company throughout the IPO process and beyond.

Pursuing an Initial Public Offering (IPO) may present significant opportunities for growing companies, providing them access to increased funding and more capital. However, the journey to going public can be fraught with potential challenges for the organisation and its leadership.

Considering that an organisation’s risks tend to evolve once it becomes a public company, it is critical to take early steps to identify and evaluate the various challenges and develop a tailored risk management plan and transfer strategy. Perhaps most significantly, as employees play an essential role in an organisation's success during and after its IPO journey, business leaders should proactively seek to improve employee retention and attraction and create a robust succession plan.

In this episode of Risk in Context, Ruth Kochenderfer, Marsh's Directors and Officers (D&O) Product Leader for the US, speaks with Nathan Reyes, Global Risk Management Advisory Practice Leader within Marsh’s Financial and Professional Liability Practice, and Ryan Cameron, Senior Principal within Mercer’s Human Capital Group. They discuss the multiple challenges that companies may face during their IPO journey, and share strategies for mitigating these risks and building a robust risk management and insurance program to protect the company throughout the IPO process and beyond.

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Key takeaways

Consider insurance implications early on

The shift from a private to a public company changes risks and liabilities, requiring a thorough review of the existing insurance programme and early discussions with insurers to determine which, if any, should remain as providers post-IPO.

Develop a strong retention and attraction strategy

A well-defined retention and attraction strategy can help maintain the engagement of essential personnel throughout the IPO journey and once the organisation has gone public, while taking action to identify potential gaps in human resources and developing a clear succession plan.

Continuously assess the insurance programme’s adequacy

It is critical to regularly evaluate your overall insurance programme, allowing for adjustments in coverage limits and terms in response to the public organisation’s evolving valuation, risks, and market conditions.

About our speakers

Ruth Kochenderfer

Ruth Kochenderfer

D&O Product Leader

  • United States

Ruth Kochenderfer is Marsh’s D&O Product Leader in the US and a broker within Marsh's FINPRO Practice. Based in Washington, DC, she advises clients on evaluating and designing risk transfer solutions that address financial and professional exposures, including directors and officers liability, errors and omissions, employment practices liability, fidelity (crime), employed lawyers liability, and fiduciary liability. Her clients include US-based and multinational publicly traded as well as private organisations in various industries.

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Nathan Reyes

Global Risk Management Advisory Practice Leader, Marsh FINPRO

  • United States

Nathan Reyes is the Global Risk Management Advisory Practice Leader within Marsh’s Financial and Professional Liability Practice. Based in Chicago, he provides strategic guidance and expertise in directors and officers liability and other executive liability lines of coverage. His responsibilities include client education, client renewal preparation, setting and executing strategic renewal goals, and negotiating with insurers on behalf of Fortune 1,000 public companies and high-valuation private companies seeking initial public offerings. In addition, he developed and leads FINPRO’s Rapid Growth Center of Excellence on a national level. This dedicated team focuses on advising high-valuation private companies throughout their journey to an initial public offering.

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Ryan Cameron

Senior Principal, Human Capital Group, Mercer

  • United States

Ryan Cameron is a Senior Principal in Mercer's Career business in Los Angeles and a global resource for Mercer’s Executive Rewards Practice, leading international training and development of market best practice methodology for both early-stage (pre-IPO) and late-stage incentive equity plans. He consults across many aspects of the career business, advising clients on how to strengthen the relationship between business strategy, human capital strategy, and programmes. He has extensive experience advising boards of directors and senior management on the design of executive compensation programmes that align decision-making with shareholder value creation and are consistent with sound governance practices.

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