Providing shareholders with more information over the resilience of a company has never been more important. The Brydon proposals are moving the debate in the right direction.
Recent economic shocks such as COVID-19, and the importance of emerging threats like climate change, have brought this into the spotlight. The current viability requirements do not provide sufficient transparency or a long-term view of the resilience of a company’s business model. In addition, the level of disclosure around risk management, including the controls and governance processes in place to manage those risks, could be enhanced.
We believe that change is needed and the audit profession has an important role to play. The question is how to do so. Maintaining confidence in the capital markets depends on getting this right. To drive meaningful change, the new Resilience Statement should be subject separate assurance under a clear framework, Directors should be accountable for providing high-quality disclosures and the regulator must act proactively to challenge companies on resilience reporting.
Read our paper to explore:
- the details of the proposals;
- our perspectives on the benefits they bring;
- the key questions which need to be resolved to avoid unintended outcomes;
- how companies can improve reporting today using existing requirements; and
- the key considerations for preparing a robust Resilience Statement.
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