What does risk reporting entail?

Risk reporting primarily involves documenting and communicating information about identified risks to relevant stakeholders. This often includes details such as the nature of the risks, their potential impact, and the measures being implemented to manage them. Effective risk reporting is crucial because it ensures that all stakeholders have a clear understanding of the risks the organization faces, how they may affect objectives, and what strategies are in place to address those risks. This transparency is essential for informed decision-making and resource allocation within an organization.

While implementing measures to mitigate risks, evaluating the likelihood of risks, and actual risk mitigation are important components of risk management, they do not encompass the full scope of what risk reporting aims to achieve. Risk reporting acts as a bridge between the assessment and management of risks and those who need to be informed about the organization's risk profile.