In their latest report, which reviews the governance considerations for audit and risk committees, Criticaleye’s Advisory Partner, EY, analyses what reporting can tell us about FTSE 350 governance practises and how they are likely to evolve in light of the Government’s reform proposals, the shift towards stakeholder capitalism and the pandemic.
Key takeaways include:
Investment managers have an important role to play in the audit and corporate governance reform agenda. This will involve engaging with audit committees on material risks to the long-term value of the company.
A number of companies have explicitly stated that they already are, or will be next year, taking action to prepare for the introduction of new ICFR (Internal Controls over Financial Reporting) requirements in the UK.
Around 80 percent of the companies within EY’s sample had a cyber security related principal risk. A further 12 percent explicitly referenced cyber security as part of their operational risk (financial service companies) or business interruption/ continuity.
This report also includes some valuable examples from 2020 annual reports.