Risikorapporteringens informationsværdi

Pernille Olsen

Student thesis: Master thesis

Abstract

All companies are exposed to risks which unfortunately prevent the companies from achieving their financial and strategic objectives. This may have negative consequences both for the companies and their interested parties. Therefore it is important that companies have an efficient risk management process to identify, assess and respond to considerable risks and thereby increase the possibilities to achieve the objectives. Interested parties need to gain an insight into the risk management process of the companies. In bigger companies the interested parties gain this insight through the annual report. Both the Danish Financial Statement Act and the Corporate Governance Code regulate the risk reporting in the annual report. The legislation is intended to ensure that the interested parties have easy access to relevant information about the companies risk managements. Unfortunately a study called ‘The value of the annual report’ shows that the companies in general fail to comply with the interested parties demand for specific information about the risk management. This is problematic because the interested parties then make important decisions based on insufficient information. In this thesis I will set out relevant legislation and analyse different management reviews which all are considered as being best practice reports. The purpose of the thesis is to analyse what characterize a best practice risk reporting in Danish public companies and whether this have any information value to the interested parties. The analysis shows that the best practice reports all contain relevant and informative information and that the information is well arranged. The risk reporting is in overall very transparent and the interested parties are able to gain a good insight into the companies risk management. Therefore the conclusion of the thesis is that best practice risk reports of Danish public companies have good information value for the interested parties and there is no need to make any changes in the legislation. Instead the companies are recommended to get inspired by the best practice reports and thereby increase the information value in their own reports. That would be an advantage for both the companies and their interested parties.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2015
Number of pages86