The UK Financial Reporting Council (FRC) recently released a report titled "Reporting on Risks, Uncertainties, Opportunities and Scenarios: Closing the Gap," in which the regulator's Financial Reporting Lab lays out the information investors are seeking on risk, uncertainties, and opportunities. The report found that there remains a gap between the information investors want and the data available in disclosures, which is widening as more investors seek to utilize ESG data in making investment decisions.
"[Investors] want to understand how the risk management framework and mitigation tool kit have adapted and changed in the face of the COVID-19 pandemic and how those changes more effectively equip the company for an uncertain future," the authors wrote. "They also need to understand how and where these uncertainties might impact the company and the opportunities and the risks relevant to the company’s future."
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