The project which follows the publication of the Lab report on Business model reporting will “explore how companies can develop effective principal risk reporting and viability statement reporting to meet the needs of investors”.

The scope of the project includes: 

• how companies identify their principal risks, the controls that mitigate the risks and how they are communicated;
• the linkages to the business model, strategy and other parts of the Annual Report;
• how companies develop the viability statement and how this links to the risk and control framework;
• communication of key judgements made, including any qualifications and assumptions, and the rationale for the number of years the statement is covering;
• communication of approach to modelling and stress testing; and
• how investors use principal risk disclosures and viability reporting to inform investment decisions and their stewardship of companies. 

The Financial Reporting Lab are interested in hearing from companies, investors and analysts.  The project will commence in May 2017 with expected output produced in time for December 2017 year-end Annual Reports. 

Interested parties should indicate their interest by 21 April 2017. 

Further information including the press release is available on the FRC website.