Risk management

The UK Corporate Governance Code makes it clear that the board has ultimate responsibility for an organisation’s overall approach to risk management and internal control, including establishing and maintaining an effective risk management and internal control framework, determining the nature and extent of the principal risks and those risks which the organisation is willing to take in achieving its strategic objectives, agreeing how the principal risks should be managed or mitigated to reduce the likelihood of their incidence or their impact, monitoring and reviewing the risk management and internal control frameworks, and the management’s process for this, and satisfying itself that they are functioning effectively, and that corrective action is being taken where necessary, and ensuring effective external communication on risk management and internal control. The FRC has published guidance to assist with this, 

Financial Reporting Review Panel/Financial Reporting Council

• FRC: Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) – February 2025
• FRC: Guidance on the Going Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) – Consultation – August 2024 
• FRC: FRC Lab Report – Digital Security Risk Disclosure – August 2022
• FRC: Supply chain disclosure – Lab Insight - April 2022
• FRC: Thematic Review – Alternative Performance Measures (APMs) - October 2021
• FRC: Thematic Review – Viability and Going Concern – September 2021
• FRC: FRC Lab Report – Reporting on risks, uncertainties, opportunities and scenarios – September 2021
• Financial Reporting Lab Artificial Intelligence and corporate reporting - How does it measure up? – January 2019
• Financial Reporting Lab Business model reporting; Risk and viability reporting - where are we now? - October 2018
• Financial Reporting Lab Reporting of performance metrics - June 2018
• Financial Reporting Lab Project report: Risk and viability reporting - November 2017
• FRC Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks Guidance for directors of companies that do not apply The UK Corporate Governance Code – April 2016
• FRC Guidance on risk management, internal control and related financial and business reporting – September 2014
• FRC Guidance for directors of banks on solvency and liquidity risk management and the going concern basis of accounting – September 2014
• FRC Feedback statement - Revisions to the UK Corporate Governance Code - September 2014
• FRC Consultation on proposed revisions to the UK Corporate Governance Code – April 2014
• FRC’s feedback statement “Implementing the recommendations of the Sharman Panel -  November 2013

Other guidance

• Risk Coalition: Raising your game – Principles based guidance for board risk committees and risk functions across sectors – February 2025

Sharman Inquiry

• Final report and recommendation of the Sharman Panel of Inquiry “Going concern and liquidity risks - Lessons for companies and auditors” - June 2012
• Preliminary report and recommendations of the Sharman Panel of Inquiry “Going concern and liquidity risks - Lessons for companies and auditors” - November 2011