There is a growing understanding that risk reporting needs to change; better risk reporting is integral to better governance. This research project, based on interviews and case studies, seeks to identify how both the quality and value of risk reporting can be improved. How can an organisation strike the right balance to include sensitive information without giving away competitor advantage?
At the conference, 67% of those answering agreed or strongly agreed that commercial sensitivities are used as a barrier to risk reporting, it acts as a fantastic smokescreen to hide all sorts of information that could give away competitive advantage. 80% also thought the current trend towards voluminous reporting on risk, especially at banks, is obscuring the key risks. As panellist Eric Tracey puts it, an integrated approach to risk reporting is the key to helping investors make the right decisions. Frank Curtiss, also panellist to the GRP conference, agrees and affirms that investor primacy and a clear narrative in the voice of management are key elements in risk reporting.
To the question ‘what should a risk report include?’, financial analyst Ewald Müller replies that “[his] ideal risk report would contain more pictures than words, and should explain what matters to the company, what the company did right, what it did wrong, and what it changed”.
Additional interviews are to be published and the main report will be issued at the end of July 2014.