FRC Lab kicks off risk and viability reporting project

The Financial Reporting Council Lab is kicking off a project on risk and viability reporting and is looking for companies, investors and analysts to participate in the research by 21 April

The Lab project will explore how companies can develop effective principal risk reporting and viability statement reporting to meet the needs of investors, and generally improve the quality of reporting in annual reports.

The project will commence in May 2017 with output expected to be published in time to be helpful for December 2017 year-end annual reports.

While the scope of the project may develop over the research period, it will focus primarily on the following issues:

  • 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 judgments 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

This project follows the publication of the Lab Report on Business model reporting which was published in October 2016.

The deadline for interested parties to sign up to the project is 21 April.  

If you would like to participate or want more information, please contact the Lab - FinancialReportingLab@frc.org.uk

The FRC Lab Project Call for Participants: Risk and viability reporting information is available here

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