Industry risk report marketing.
To call or not to call--that's the question that telemarketers
and their clients are asking now that a tangle of Do- Not-Call lists and
other federal and state regulations stand between them and a successful
calling campaign. If they think they can dial up an answer overseas,
they could discover that the emerging risks of outsourcing may put their
marketing on hold, too.
Company Name Location CRO
Acxiom Little Rock, Bill Bruton,
Corporation Ark. Risk Management
Convergys Cincinnati Carol Fox,
Corporation Ohio Director, Risk
Digitas Inc. Boston, Mass. Withheld
Google Inc. Mountain View, Withheld
Interpublic New York, N.Y. Thomas A. Dowling,
Group SVP and Chief Risk
Lamar Baton Rouge, La. James Robertson,
Advertising Corporate Safety
Omnicom Group New York, N.Y. James McGuire,
R.R. Donnelley Chicago, Ill. Linda Lull,
and Sons Inc. Corporate Risk
Viad Phoenix, Ariz. Rosemary Lietz,
West Omaha, Neb. Toni Wieczorek,
Corporation Risk Management
Company Name CFO Revenue
Acxiom Rodger S. Kline, $1,223 million
Corporation Chief Finance
Convergys Earl C. Shanks $2,487 million
Digitas Inc. Brian K. Roberts $382 million
Google Inc. George Reyes $3,189 million
Interpublic Robert Thompson $5,863 million
Lamar Keith A. Istre $883 million
Omnicom Group Randall J. Weisenburger $9,747 million
R.R. Donnelley Glenn Richter $7,156 million
and Sons Inc.
Viad Ellen M. Ingersoll $785 million
West Paul M. Mendlik $1,217 million
No. of Primary
Company Name Employees Broker Captives
Acxiom 6,600 Withheld No
Convergys 66,300 Withheld No
Digitas Inc. 1,500 Withheld No
Google Inc. 3,021 Withheld No
Interpublic 43,400 Aon Triad Assurance
Group Co. Ltd.
Lamar 3,000 Withheld No
Omnicom Group 61,000 Withheld No
R.R. Donnelley 43,000 Withheld No
and Sons Inc.
Viad 3,025 Withheld No
West 2,800 Withheld No
Company Name Risk Exposure:
Acxiom Changes in the consumer and business information
Corporation industries and markets; a breach of security in
the company's computer systems that could interrupt
or interfere with its normal operations; the impact
of changing legislative, judicial, accounting and
regulatory environments in the places where the
Convergys The company's failure to keep its technology up-to-
Corporation date, as well as the threat of defaults and errors
in this technology; emergency interruption of data
centers and customer/employee care centers; the
company's dependence on the continuation of global
business trends like outsourcing; the company's
failure to successfully manage consolidation.
Digitas Inc. The company's failure to meet clients' expectations,
which could result in decreased business, financial
losses and negative publicity in the future; acts
of war or terrorism that could adversely affect the
company's business; fluctuations in quarterly
revenues and operating results that may negatively
impact Digitas' stock prices; the company's ability
to maintain its reputation and expand name
Google Inc. Competition from other Internet advertising companies
and destination Web sites that also bundle their
services with Internet access; the reduction in
spending by or loss of advertisers could seriously
harm the company's business; the company's ability
to expand its base of users, advertisers and network
Interpublic The company's ability to attract new clients and
Group retain existing clients, as well as the continued
financial success of the company's current clients;
potential adverse effects if the company is required
to recognize additional impairment charges or other
adverse accounting-related developments; risks
associated with the company's remaining motorsports
Lamar Risks and uncertainties relating to the company's
Advertising significant indebtedness; the demand for outdoor
Company advertising; the company's ability to renew expiring
contracts at favorable rates; the integration of
companies that the company acquires; the regulation
of the outdoor advertising industry.
Omnicom Group Risks associated with the company's international
business, including currency fluctuations, political
instability and exchange controls; the company's
continued ability to develop creative solutions that
meet client needs; Omnicom's ability to protect its
business from negative interaction with government
agencies and consumer groups.
R.R. Donnelley The rate of migration from paper-based forms to
and Sons Inc. digital formats and its effect on the company's
business operations; changes in capital markets
that could affect the demand for financial printing;
changes in postal rates and postal regulations;
changes in the advertising and printing markets;
the company's ability to secure and defend
intellectual property rights.
Viad Changes in customer-demand patterns that could
Corporation adversely affect the company's operations; industry
alliances, consolidation and growth patterns in the
industries in which Viad competes; the possibility
of natural disasters and other catastrophes that
could negatively affect or interrupt the company's
West Risks in connection with completed or potential
Corporation acquisitions; increases in the cost of telephone
and data services or significant interruptions in
such services that could seriously harm the company's
business and operations; risks associated with
software failure and network security.
Company Name Risk Strategies:
Acxiom The company does not use use derivative or other
Corporation financial instruments to manage risks associated
with interest rates or foreign-currency risks. The
company's board of directors deals with issues of
risk management, and the company maintains a risk
management department, as well.
Convergys Convergys maintains property and business-
Corporation interruption insurance coverage. The company's
risk management strategy also addresses market
risks and includes the use of derivative instruments
to reduce financial losses resulting from fluctuating
exchange and interest rates.
Digitas Inc. Digitas carries general liability insurance coverage,
as well as property/casualty coverage and a builder's
risk insurance policy to mitigate losses resulting
from fires or other catastrophic risks. The company
also maintains an environmental liability policy.
Digitas carries workers' compensation insurance and
a business-interruption policy, as well.
Google Inc. Google purchases various insurance policies to
mitigate a variety of risks and losses, including
directors and officers liability coverage.
Additionally, the company recently established a
foreign-exchange hedging program designed to
minimize the future potential impact of changes
in foreign-currency exchange rates.
Interpublic The company has purchased life insurance policies on
Group participants' lives to assist in the funding of the
deferred compensation liability.
Lamar Lamar has determined that it is not economical to
Advertising obtain insurance against losses from hurricanes and
Company other natural disasters. Instead, the company has
developed contingency plans to deal with the threat
of hurricanes. Additionally, the company self-insures
a group health insurance plan and maintains outside
coverage for workers' compensation and general
Omnicom Group The company's financial risk management effort
includes the use of short-term forward foreign-
exchange contracts to manage currency risks
associated with the company's international business.
The company also has cross-currency interest rate
swap agreements in place to manage these
international financial risks.
R.R. Donnelley The company addresses certain financial exposures
and Sons Inc. through limited use of derivative financial
instruments. R.R. Donnelley enters into interest-
rate swaps to manage its interest costs and exposure
to changes in interest rates.
Viad Viad is self-insured for workers' compensation,
Corporation automobile, product and general liability, and
property loss claims. The company has also purchased
various insurance coverages for amounts in excess of
the self-insured levels.
West West Corporation maintains insurance policies
Corporation covering general liability, casualty and business
interruption. The company also maintains a property
insurance policy, as well.