Improved risk reporting can contribute to greater financial stability, but will never prevent business failure, according to a new report by the ICAEW.
The new publication 'Reporting Business Risks: Meeting Expectations' takes a look at current risk reporting across sectors and countries. It sets out a series of recommendations for improving risk reporting but warns users should not ‘expect miracles’.
Robert Hodgkinson, executive director at the ICAEW, said: “There is scope to enhance risk reporting but it is important to appreciate that risk reporting in itself creates risks and is therefore seen as a risk management exercise. Risk reporting requirements vary greatly from country to country but there are some common principles that could enhance this type of reporting around the world.”
Co-author of the report with Hodgkinson, Brian Singleton-Green, outlined the institute’s seven principles to AccountingWEB: