Phil Abram from Thomson Financial's Corporate Advisory Services group discusses the subprime situation in the final installment of Making Sense of Subprime.Transcript:In a challenging, and rapidly changing economic environment, the importance of a strong investor relations program should not be understated as a means to navigate through wide-spread market uncertainty. I'm Phil Abram, back with Thomson Financial's fourth and final segment of "Making Sense of Subprime."To get a sense for how Investor Relations and Management teams are reacting and communicating with the investment community, Thomson Financial conducted a brief survey of IR professionals. Results came from all sectors and all market caps, with a total of 1.2 trillion dollars of market cap represented. When asked whether they have increased, decreased or kept their level of external and internal communication the same, nearly half of those IROs we spoke with indicated that they have increased their level of dialogue. 75 percent of polled IROs said also yes, they have been receiving different questions from the buy-side, AND 70 percent of those yes's said that the economy was the focus of heightened interest. Internally, management has shown slightly less of a reaction, but still, over 40% of surveyed IROs noted that they've seen a sharper interest pertaining to their investor base and how the economy is affecting their stock. The response to the economic environment has been less about change and more about consistency. However, more than 1 out of every 3 IROs we spoke with did say that they have taken action to change their pitch to investors. The majority said that in changing the pitch, they were trying to front run questions about their business and the economy, while others said that they have been trying to provide more detail into their company's financials. Specifically, nearly 20% of respondents said that they have deliberately added new levels of transparency in publicized statements to quell the uncertainty surrounding their balance sheet. Beyond the consensus practice in the IR community, Thomson also spoke with the buyside community to get their perspective directly. Only one third of the participants said that they do not need to be getting any additional information from investor relations. Some responses indicated that investors are looking for IR to be more active communicators. This can mean leveraging key media contacts to get a message out that differentiates the company from competitors; it can mean getting out on the road more to increase general exposure; or it can simply be making yourself more accessible to investors looking for more tangible reasons to invest in the stock. Once in that position, the IRO can expect to field more questions about execution, the use of cash and of course, macroeconomic conditions. 66 percent of polled IROs said that they believe the US economy is currently in a recession. Communicating to investors where and in what capacity business is impacted by this possibility can be a valuable strategy to manage an investor base that is looking for answers in a time of uncertainty.