Crowd risk

in #business4 years ago


Crowdfunding, and especially crowdinvesting (equity crowdfunding) will change approach to corporate governance and such its assisting tools as risk management, compliance and internal auditing.

In fact, traditional shareholding and stock market are also crowd-funding examples, but today we employ new technologies, especially those based on active use of Internet. It has evolved to the stage when to acquire shareholder status you don't need to wait for a long time to get knowledge and advices, to toil and study, fill the extra forms and open accounts. The co-investment process is accelerated: you just click a few buttons, and you are a holder of a business with IPO ambitions and plans to overtake Facebook, to break Youtube into ribbons, and bring House Lannister to justice.

The problem is that even at the level of regulators there is no readiness concerning protection of the rights of crowd-investors, and money is already attracted considerable. Surely, a number of the states quickly adopted certain laws and regulations: so in the US JOBS Act was developed, including the section devoted to crowdfunding. But what can we say on standards and practice of corporate governance? Everything isn't simply raw - empty.

In the countries where public investment well develops, there are also strong indications and actuality of economy growth. Therefore perception of corporate governance seriousness, and especially risk management, (mistakenly!) unclear for the majority. "Why to invest a thought in risk management if so everything is good?" way of thinking prevails again. At the same time, the economy wave theories indicate that innovative cycles are asynchronous with business cycles: so the most superior, perspective "know-hows" appear significantly earlier, than growth begins to be felt. And during the growth there massive plagiaristic and second-class ideas which nevertheless is represented as something new and promising. As a result, "bad projects" appeal "silly money". So the moment of "boss, all is lost, all is lost" will come in any case. As a rule, risk management and improvement of corporate governance become matters of concern, rather late, but for correction of mistakes it is anyway necessary to react. ...

further ... https://kudrin.ru/2016/12/11/crowd/
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