Is risk management explicitly mentioned in the Companies Act 2006?

The Companies Act 2006 does not explicitly state the term "risk management"; however, it encompasses provisions that imply the importance of risk management within the broader context of corporate governance and financial reporting. For instance, the Act requires directors to exercise reasonable care, skill, and diligence in managing their companies, which inherently involves identifying, assessing, and mitigating risks that could impact the organization's performance and viability.

Furthermore, while risk management is not detailed as a specific duty, the inclusion of guidance on maintaining adequate accounting records and preparing a strategic report inherently demands that organizations consider risks related to their business activities. This indirect approach indicates that while the Act does not mandate formal risk management frameworks, it does imply that businesses must engage in practices that align with effective risk management principles to fulfill their legal obligations to stakeholders.

The other options suggest a more definitive stance on the presence of risk management in the Companies Act. However, the lack of direct mention aligns better with the idea that risk management is implied rather than explicitly stated or mandated.