Ed Buthusiem - The Materiality Trap

On this episode of the Thinkset Podcast, host Eddie Newland talks with BRG Managing Director Ed Buthusiem about the growing trend of multi-national corporations joining highly regulated industries in search of margin growth. Ed describes this growing trend as the ‘materiality trap’, as many companies struggle to adapt their risk assessment procedures in these lucrative new industries. Topics include: motivation for this growing trend (1:15), how to avoid problems on the front end (3:40), structure of risk assessment programs (5:45), the materiality trap (7:20), calculating risk vs materiality (10:20), the regulatory viewpoint (16:00), venture capital savvy in dealing with materiality trap (19:00).