Feature
LEGISLATION
Coming into the light The European Commission is implementing two major initiatives aimed at enhancing corporate transparency, but what is the role of the risk manager likely to be? BY JO WILLAERT
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ince the financial crisis, there has been a strong trend in the European Union in its member states and other bodies for ever greater transparency from large companies, including risk-related information. As risk managers, we believe that we have an important role to play in helping our organisations meet these requirements through enterprise risk management. Currently, EU pressure for more corporate transparency translates into two main areas. Non-financial reporting, covering issues like the treatment of employees, the environment, human rights and anti-corruption. And country-by-country financial reporting, which came into effect for certain industries in 2014, and now could be extended to all large multi-nationals in Europe. Non-financial reporting is the latest measure to come to the fore. The Non-Financial Reporting Directive has been agreed and will be implemented by the end of 2016 in all EU countries. The directive specifically asks that the nonfinancial statement that companies will have to provide from 2017 contains a description of its principal risks and how the organisation is dealing with them. These non-financial elements are principally environmental, social and employee matters, or what are often called corporate social responsibility (CSR). It also applies to the
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Above: Jo Willaert, President of the Federation of European Risk Management Associations (FERMA).
Enterprise Risk
