The communications department is integral at any organization because it is responsible for dealing with inquiries from the public and the media that otherwise would flood the offices of top executives. Investor communications is especially necessary for companies that trade shares of stock or bonds in the financial markets. This division serves as a liaison between the public and the company's management team, including the chief financial officer and chief executive officer, along with attorneys in some cases. In order to communicate sensitive financial information effectively while protecting the privacy of the company being represented, the investment communications team should respond to queries promptly, be proactive about any unexpected financial events or information and keep abreast of economic trends.
When a company issues a financial statement, such as quarterly or yearly earnings, it is a vital piece of information that is usually filed by a key member of the management team. The company typically will offer a press release summarizing the key pieces of information in that document, such as whether profits and revenues met expectations and any future growth plans outlined by the company. This document will be distributed to media outlets and investors, and the contact information at the bottom of the page will often be that of the investor communications team.
In order to handle any queries that might result from a financial release, the investor communications team should be well versed on economic terms and how they relate to the industry in which the company operates. They should be well read on global economic events that might have an impact on the company, because these are all potential concerns of investors and the media. Also, this team should be aware of any growth plans or potential restructurings that might be on the agenda, and this can be learned by sitting in on conference calls with investors and holding internal meetings with finance executives whenever possible. Even if the investor communications professional cannot yet share this information with others, he or she will serve as the gatekeeper to protect that data and to portray any other information in the right context given the forthcoming events at the company.
As in any profession, the members of an investor relations team should make themselves valuable to the company. There should be a genuine interest in the industry in which the company participates, because those are the types of questions that must be fielded from the public. Also, they should be sensitive to the boss. If a company does not want to reveal information or have any information attributed to the company or even a spokesperson, this person must know how to resist pressure from the media.
