21Apr, 2017

The Role of Investor Relations in a Company

public relations, The Role of Investor Relations in a Company-Public Relations and Communications Business Portal News Indonesia

By: Indah Soepraba – Business Group Director of Fortune PR

Investor Relations (IR), according to The National Investor Relations Institute, is a strategic management responsibility that is capable of integrating finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies.

IR is one of a department inside a company that handle questions from stakeholders, investors, and other parties that might be interested in the company’s stock or financial stability. IR officers and consultants normally interact with the highest level of company management, including CEOs, CFOs, and boards of directors. Their very specific abilities are vital in companies that already, and about to carry out Initial Public Offering (IPO).

IR is a multidisciplinary role, drawing upon skills in communications, finance, marketing, and advance numerical skills to enter this field from each of those disciplines. IR professional has a strategic management responsibility that manage the content and flow of company information to financial and other constituencies to maximize relative valuation. This is done through creating annual report, financial report, incidental report, stakeholders meeting report, as well as press releases and the company’s financial statement.

Companies in Indonesia rarely own an internal IR function. Whereas the role of an IR is important for the company’s financial sustainability. The role of IR professional in a company is important to make sure that investors, individual or in forms of an association, are well informed and profitable on their investments. IR professionals must convince the public that their company is doing great financially and will generate profit for the years to come.

Besides having a strong background in economics and communications, IR professionals also need to be very strategically positioned, as they need to maintain relations not just externally, but also internally within the company.

In order to get a deeper understanding about investor relations, on Friday, April 7th, 2017, Indah Soepraba, Business Group Director of Fortune PR, presented a very detailed training about how the role of IR professionals can interact with the financial community and develop various forms of communication strategies to the public. Besides explaining about the basics of IR functions, Indah also shares her professional consulting experiences dealing with financial crisis.

 

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