Governance & Policy
Risk Disclosure
Definition
Risk disclosure is the public reporting by organisations of material risks and how they are managed, through annual reports, regulatory filings and sustainability reports. In the sustainability domain it has been reshaped by climate risk disclosure: the TCFD framework (2017) structured reporting around governance, strategy, risk management, and metrics and targets, and its architecture was absorbed into the ISSB's IFRS S2 standard, now being adopted in jurisdictions worldwide.
References
Supports definition and framing.
Supports definition and framing.
Overview
How it is used
Mandatory regimes (CSRD/ESRS, ISSB-adopting jurisdictions, SEC climate rules) and voluntary frameworks structure what must be disclosed; assurance requirements are tightening around the data.
Why it matters
Disclosure is the market mechanism for pricing risk: what companies must report, investors can compare, and what can be compared gets managed.