Overview
There are some bright spots though. Despite the confusion, there are a few companies who manage to make their intentions clear, or who are genuinely informative, in their risk section. Thanks to the emerging regulatory and enforcement regime in the UK, it is possible to see a consistent approach to reporting risk in British companies, even if there is plenty to do to make that reporting more informative. German firms often position the risk section as part of an outlook statement that assesses potential developments in both the external environment and the company’s performance. Others go further and provide some form of risk impact or sensitivity analysis. Several European companies, both in Germany, the UK and in other markets, give a reasonable account of their risk mitigation policies.