User:A.Yagi924/sandbox

James Lam Associates (JLA)
James Lam Associates (JLA) is the independent consulting firm founded in 2002 by James Lam. The firm is exclusively focused on risk management and works directly with chief risk officers (CROs), CEOs, CFOs, and other executives from global financial institutions, energy firms, multinational companies, and government service organizations. The firm offers consulting services in all aspects of risk management and board and executive training services.

In 2004, James Lam Associates researched on the main cause for financial distress at companies that publicly traded.

The research question was: when a company faces a major market value decline which is a 30 percent relative decline, what was the main cause? The research team found that 76 S&P500 companies had suffered a dramatic decline in market value in a month, after analyzing the market value data of S&P500 companies from 1982 to 2003. The JLA research team determined the root case of their market value decline by reviewing news reports, regulatory filings, and company statements. These 76 companies worked with a cross major industries such as energy, materials, industrials, telecommunications, consumer products, health care, utilities, and financials. Overall, the JLA's study found that 61 percent of occurrences were due to strategic risks (i.e. consumer demand, M&A, competitive threats), 30 percent were caused by operational risks, and 9 percent were due to financial risks. Yet, in practice, a lot of Entertainment Risk Management (ERM) programs downplay or ignore strategic risks.