Risk reporting - Airmic support for Financial Reporting Council proposals that put greater emphasis on risk

Airmic has made a response with CIMA (the Chartered Institute of Management Accountants) to proposals by the Financial Reporting Council to its proposals to reform the UK Corporate Governance Code.

The associations broadly support the planned changes, which put increased emphasis on risk management in the financial reporting process. “We welcome the importance given to the cultural and behavioural aspects of risk management,” they say in a joint letter from CEOs John Hurrell and Charles Tilley.

“The FRC’s proposals are very much in line with our findings when we published Roads to Ruin in 2011, so we naturally support their general thrust,” said Hurrell.

Airmic and CIMA are, however, urging the FRC to make some changes. In particular, their letter calls for greater clarity, because they say the structure and wording are confusing in places.