Pre-emptive action

While audit firm Price Waterhouse has decided clamming up is the best strategy to deal with the fallout of the Satyam affair, it might want to learn a lesson or two from other beleaguered firms. McGraw-Hill, the owners of ratings firm Standard & Poor’s, have announced the appointment of an ombudsman for the rater. Ray Groves, the new ombudsman, is a former chairman and chief executive officer of Ernst & Young. The company says the appointment is one of a series of actions the company is undertaking to further strengthen its ratings process, increase transparency and better serve capital markets around the world.