Where do organizations typically report their principal risks?

Organizations typically report their principal risks in their Annual Report and Accounts because this document is a comprehensive summary of the company's financial performance and operational activities over the past year. It is a formal means of communication to shareholders and stakeholders, providing insights into various aspects of the business, including risk management. The Annual Report often includes a dedicated risk management section where organizations discuss the key risks they face, how these risks are being managed, and the potential impacts on the business.

This practice emphasizes transparency and allows stakeholders to understand the risks that could affect the company's future performance, aligning with regulatory expectations and best practices in corporate governance.

In contrast, while Risk Management Guidelines may outline how an organization identifies and manages risks, they are generally internal documents not shared broadly with stakeholders. Stakeholder meetings can provide a forum for discussing risks, but they may not capture the full scope or detail typically found in an Annual Report. Social media channels are often used for marketing and public relations purposes and are not suitable for comprehensive reporting on principal risks.