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When is the Correct Time to Reduce Exposure in a Company?

Posted By On 1/08/2009 09:05:00 PM Under

1. This is a crucial question which needs to be answered related to the time frame when the exposure in a company be reduced or completely avoided and same can be attributed tp the cockroach theory.

2. Cockroach theory means that when a single cockroach is seenit means more are behind the veil i.e behind the cupboard, wall etc. Similarily moment a fraud or a bad news related to company which is attributable to company actions should provide a clue to the client to reduce the exposure in the company as bad news begets bad news. Thus one can be on the look out for the negative actions which can be attributed to wrong actions and policies of the companies and this assumption stems from Satyam Fraud which has brought disgrace to a nation.


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