Financial communication is an important part of the corporate communication workflow. The target groups for financial communication are both important and demanding. Corporate communications consultants have extensive experience in investor relations for publicly traded companies. This type of work is characterized by advanced financial skills and high levels of precision. At the same time, an additional dimension to work needs to be added through a broader understanding of public affairs and society at large. Today, financial markets are increasingly international and corporate communication has a well-established international network of partners in the world’s financial centers.
In the field of financial communication , it is essential to be assisted in three different areas:
1. Investor relations
Investor Relations (IR) covers strategic and operational communication with investors and other relevant financial target groups and helps make the company’s potential more visible and better understood, while reducing uncertainty. Listed companies are often supported in areas such as:
- Quarterly reports
- Execution of the Investor Relations function
- Video production
- Regulatory issues
- Investor meetings, presentation tours, etc.
- Targeting investors
- Corporate governance
- Issue management
Financial transactions present complex communication challenges, and corporate communication helps with some of the most important transactions, equity issues and stock quotes.
3. Financial Public Relations
In the field of corporate communication, you need a thorough knowledge of finance as well as an extensive understanding of communication. This combination reaches its full potential in financial public relations, creating synergies between public relations and international relations for publicly traded companies. The reputation of a company can be improved by engaging in proactive media work based on financial information. In the same way, good visibility in the media can help to increase investor interest. The best way to do this is to integrate your public relations and public relations work.
Financial public relations also includes advising companies in the financial sector, such as banks, fund management companies, brokerage firms and private equity firms. These clients point out that communication strategies and activities are based on financial knowledge and understanding.
Effective financial reporting on the performance of a business can affect share price performance and the cost of capital for the business. Financial communication (often managed by an investor relations function) is an important link between the company and its investors, especially when the global financial markets are difficult . Not surprisingly, the top ten priorities of management and boards of directors include opportunities for effective financial communication with investors.
The excellence of financial communication depends on the external and internal effectiveness of the investor relations function.
- The effectiveness of internal communication is also based on clear processes and structures governing the information that will be provided and how the different units act together until the final disclosure.
- The main objectives of the investor relations function.
Why assess financial communication?
The first external indications that action is needed to examine the investor relations and financial reporting function include a fall in share prices relative to your peer group, despite good financial results or low latent liquidity in the action or high volatility. Internally, there could be uncertainty about the reliability or transparency of internal processes and a lack of clear definition of responsibilities; repeated non-compliance with budget figures; and an increase in the number of questions from the board of directors on certain aspects of the strategy.
Improve the RO function to seize opportunities
In addition, you may also see opportunities to improve financial communications. You can also seek to align the organization, processes and infrastructure more closely with the increasing importance of the investor relations function, particularly in difficult global financial markets, in order to improve their efficiency in the future.