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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 program 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 organization and its leadership.

Considering that an organization’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 organization'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 program 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 organization has gone public, while taking action to identify potential gaps in human resources and developing a clear succession plan.

Continuously assess the insurance program’s adequacy

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

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