Governance in brief: Enhanced reporting of principal risks
This publication from Deloitte discusses the whether companies should be early adopting the recommendations set out in the Financial Reporting Council's (FRC's) consultation on 'Risk management, internal control and the going concern basis of accounting’. The consultation document sets out additional guidance on the content of risk disclosures, as well as making it clear that boards should be using their disclosures on risk to demonstrate the board’s stewardship and governance of risk.
The FRC has provided clear guidance on what it expects to see when companies report on their principal risks. Although this is a consultation at present, the guidance on risk reporting provides useful information for shareholders and, in our view, boards should consider adopting this part of the consultation early.
