Yakub02
Banned
Risk governance Good risk reports would include the following:
a description of risk governance arrangements;
a description of how emerging risks are being managed.
Situation in the UK The UK Corporate Governance Code requires the board of directors to maintain a sound system of risk management, to carry out a review of effectiveness of the risk management system at least once each year and report to shareholders that the system is effective.
The UK Corporate Governance Code requires companies listed on the London Stock Exchange to report their risk management activities.
All companies listed on the London Stock Exchange publish a list of significant risk factors with explanation of why they are deemed to be significant and the steps taken to mitigate the risk. Typically, good reports would satisfy all of the requirements in the previous section
Financial summaries Financial statements contain a great deal of detail. Public companies often publish summaries of key figures from the financial statements as an aid to users. Good practice would require that figures in the financial summaries should be referenced back to the financial statements.
Financial summaries are useful to provide an overview of financial performance and financial position but a true understanding can only come from a detailed analysis of the financial statements in the light of knowledge of the industry within which the company operates.
a description of risk governance arrangements;
a description of how emerging risks are being managed.
Situation in the UK The UK Corporate Governance Code requires the board of directors to maintain a sound system of risk management, to carry out a review of effectiveness of the risk management system at least once each year and report to shareholders that the system is effective.
The UK Corporate Governance Code requires companies listed on the London Stock Exchange to report their risk management activities.
All companies listed on the London Stock Exchange publish a list of significant risk factors with explanation of why they are deemed to be significant and the steps taken to mitigate the risk. Typically, good reports would satisfy all of the requirements in the previous section
Financial summaries Financial statements contain a great deal of detail. Public companies often publish summaries of key figures from the financial statements as an aid to users. Good practice would require that figures in the financial summaries should be referenced back to the financial statements.
Financial summaries are useful to provide an overview of financial performance and financial position but a true understanding can only come from a detailed analysis of the financial statements in the light of knowledge of the industry within which the company operates.