This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print this page

The Value Killers Revisited

A risk management study

To use our embedded media player, please install the latest version of Adobe Flash Player.

Download report | View infographic

The last two decades have seen a number of events driving major value losses in individual companies, and collectively in the global economy.

Since Deloitte LLP's first value killers study in 2005, risk management has grown in importance to corporations worldwide. We find boards, management, and regulators paying increasing attention to risk management and governance. New disclosure requirements seek to help shareholders become more aware of company-specific risks. Yet, many companies experience significant value losses in a short period of time.

“The value killers revisited” reexamines the 2005 study, in which we assessed the drivers of 20 percent or greater value losses in a company within a one-month period relative to a broad market index. Following up on our prior research, this latest study examines the drivers of major value losses from 2003 through 2012. The losses, while distinct, were often driven by similar underlying risks. Deloitte LLP’s CFO Program, in conjunction with Deloitte Touche Tohmatsu's Global Risk & Capital Management practice, analyzed the factors contributing to severe losses in value to identify strategies for protecting shareholder equity. In all, we observed five major themes:

  1. High-impact, low-frequency risks
  2. Correlated and interdependent risks
  3. Liquidity risks
  4. M&A risks
  5. Culture and compensation risks

View the infographic to dive deeper into these themes and the key considerations for each. And, download the complete report (see above).

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

 

Related links

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options

Stay connected