Building a better MD&A: Risk disclosure

Regulators and investors alike continue to demand improved disclosure about risk. Discover practical tips to help decide what risk disclosures to make in your Management’s Discussion and Analysis (MD&A).

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Investors and others need to assess a company’s financial condition and future cash flows, but they also require disclosures about uncertainties that could undermine the company’s financial health and disclosures about the company’s ability to respond to risk.

The Canadian Performance Reporting Board (CPRB)’s Building a Better MD&A: Risk Disclosure:

  • addresses how to decide which risks should be disclosed and what to disclose about those risks
  • provides questions directors could ask to determine if the risks disclosed are adequate and complete

You will learn about:

  • six general disclosure principles to consider as your starting point
  • sources you should check to find MD&A disclosure requirements beyond those required by securities regulators
  • how to decide which risks to disclose
  • what to disclose about risks in terms of content and explanation
  • where to place risk disclosures
  • a checklist of questions boards and board committees can use to help them fulfil their oversight responsibilities related to risk disclosures