NEW YORK: PepperCom and IR firm G.A. Kraut have developed a crisis workshop aimed at helping CFOs and other financial executives deal with corporate financial crises. Such situations might include events like earnings restatements, negative stories in the financial press, and proxy fights. PepperCom will combine its experience in crisis with Kraut's financial expertise.
While PepperCom has been running several crisis workshops for companies in the wake of the September 11 attacks, this latest workshop is designed to help companies prepare for a sudden crisis of confidence in their financial position.
The offering comes after several high-profile blow-ups like Enron and WorldCom have unnerved Wall Street.
The workshop will run executives through several financial-crisis scenarios over a two-day period, pointing out various strengths and weaknesses.
PepperCom says the recurring mistake management teams tend to make is that they ignore their key constituents during a crisis. Such omissions are even more likely in a financial crisis.
"In a financial crisis, the normal constituencies remain important, such as clients, employees, and the media," said Gary Kraut, founder of G.A. Kraut. "But during a financial crisis, you can add to the mix institutional investors, brokerage analysts, retail investors, credit rating agencies, private lenders, and the IRS, just to name a few."