Reporting risk in a smart way: Risk Reporting Comparison Tool

Reporting principal risks is a requirement of UK listed organisations. We’ve produced a Risk Reporting Comparison Tool enabling our members to easily compare their submissions and enhance their own risk reporting methods.

Inspired by a series of member meetings with risk leaders from UK listed and other internationally listed organisations on this topic, we’ve developed a tool to help risk managers understand how other companies are reporting their principal/material risks in annual reports.

We’ve collaborated with members to produce a tool that works for them, based on their needs around risk reporting.

The tool, available on our Intelligence platform, aims to:

• help risk managers benchmark their reporting approach against others
• provide data to validate an approach to risk reporting
• identify what emerging risks other companies are reporting
• give easy access to the risk sections of annual reports for large-capacity companies

Members are using the tool and its objective set of data points to better inform their own risk reporting strategy.

The tool presents, and runs intelligence on, all risks reported by every FTSE 100 company, plus others in key sectors. Did you know, for example, that of all FTSE 100 companies:

• 74% include trends in the risk section of their annual reports
• 29% include likelihood/impact matrices
• The average number of principal risks reported is 12.42

These stats aren’t even the tip of the iceberg, though. The data set allows members to filter by individual companies as well as by sector and, because it’s dynamic, the other data points give members even further insight on whatever companies or sectors they want to explore: the percentage of risk pages per annual report; average words per risk page; whether a report links risk to strategy; whether it categorises risks; whether it mentions appetite and whether it lists ownership of each risk are just some of the intelligence points captured in this tool.

Future versions will focus on key sectors and international markets. These versions will also explore whether companies include KRIs, indicate whether each principal risk is tested against a viability statement, mention opportunities against risks and whether companies order risks in their reports.

But collaboration remains at the heart of our network, and this tool is no exception. We’ll enhance future versions based on member feedback and requests, alongside regular updates when new annual reports are available.

To find out more about the Risk Reporting Comparison Tool and how joining the Risk Leadership Network could help you, request a demo here.

For access to the tool plus all our other content and member meetings, or any enquiries you have, find out more about how membership works today.