Risk Management and Financial Reporting

This assignment delves into the interconnectedness of risk management and financial reporting. It examines various aspects of risk disclosure, risk management strategies, and their influence on firm performance. The analysis draws upon academic research, industry best practices, and relevant case studies to provide a comprehensive understanding of this crucial topic in accounting and finance.

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Running head: INTEGRATED ACCOUNTING PROJECTS
Integrated Accounting Projects
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Abstract
According to the present trends of financial field, risk management and risk disclosure both
are well known in the field of accounting. Considering the importance of both of these aspects in
corporate world, the present proposal is focused on the development of study in the context of
risk management with respect to risk disclosure. Based on the initial research development, the
proposal formed a comprehensive research aim, objectives and research questions, on the basis
of which further analysis for final report will be done. The prime focus of this proposal is allied
with uncertainty of investments, risks disclosure, quality of disclosure, and risk management
theories. Considering the requirements and the ability of researcher, the proposal has selected
qualitative method for further processes. With the assistance of secondary data and grounded
theory inclusion, thematic analysis will be performed in the final report. The literary supports
from different scholars have helped to construct effective understanding on the identified issues.
The flow chart diagrams and theoretical frameworks are able to portray the basic requirements of
the study and further analysis.

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Integrated Accounting Projects
Introduction
Background of the Study
The economic environment has become completely uncertain, which is further combined
with the financial crisis along with its persisting effects globally. This instance has lead to the
increased interests considering risk management, as well as, risk disclosure from the
organizational perspective, where they are search and focus on policies, which will be helpful for
minimizing risks. Controlling the accounting data does not complete the process related to the
management of risk. The process should be dependent taking the organizational business model
specifically into account. Investors or shareholders insist for the information related to the
systems for risk management along with future uncertainties. Hence, it becomes necessary for
the organizations to report the risk considering the investor, helping them in making effective
decisions regarding the investments made. The process of risk reporting is an important element
of investment practices as along with the financial statements (Manes-Rossi, Nicolo & Orelli,
2017).
The Significance of the Study
The research is quite important considering the financial crisis occurring in the recent
times, where firms are pressurized by the regulatory authorities for disclosing accurate
information about risks related to cash flows. Therefore, accounting standard boards including
the International Accounting Standards Board (IASB), Australian Accounting Standards Board
(AASB), as well as, International Accounting Standards Committee (IASC) among others helps
in developing as along with approving International Financial Reporting Standards (IFRSs) and
International Accounting Standards (IAS) for the organizations. Thus the regulatory bodies,

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which develop these standards, play a crucial role in managing and disclosing risks for the
investors. Regulatory capital has gained importance over the last past years on which banks
remain dependent during the time of stress considering failures and bailouts, as leading financial
institutions globally getting nationalized (Grody, Hughes & Toms, 2010; Heinle & Smith, 2015).
Hence, the risk culture surrounded in the processes along with the people helps in
protecting the organizations against any failures occurring in the financial crisis situations.
However, it has been evident during the research that traditional methods of periodic disclosures
used to concentrate majorly on the aspect of financial reporting numerically. This resulted in
failure to disclose the risk factors associated with the investment. Hence, the study has a unique
significance behind its completion. In spite of the fact that majority of the risk disclosures are
normally bad, but still it becomes necessary considering the corporate world. This helps in
preventing the investors from the risks related to insider trading, boosting confidence amongst
the investors as well as enhancing the efficiency of information (Grody, Hughes & Toms, 2010;
Heinle & Smith, 2015).
Purpose of the Study
For the successful completion of the paper, the following objectives will be addressed and
analyzed are as follows:
 To explore the uncertainties of the modern world in regards to political, economical, societal,
as well as, environmental landscapes considering the organizations, where large investments
are made
 To assess the role of AASB, IASB, as well as, IASC considering the disclosure of risks for
the investors in the market economy

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 To focus on the aspects of improvement considering the quality of disclosures
 To analyze the theories and practices related to risk management
Research Question
 How disclosure of organizational risks is important for the investors considering the
uncertainties?
 How efficient is risk management in controlling the risk related to investments?

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Literature Review
General Idea: Risk and Its Associated Amenities
According to Grody, Hughes & Toms (2010), different global events including financial
crisis, security threats, corporate scandals, and outbreaks of miscellaneous issues are the
important aspects in today’s data. These random topics of global field have been contributing
significantly towards growing impact of uncertainty in the corporate field. Considering the
aspects, risk reporting becomes an effective scenario to connect with the companies and their
investors. According to the present global corporate scenario, organizations are often facing
variety of risks associated with their daily operations. Companies are able to assume their pattern
of risks, which may help them in ensuring further risk avoidance and undividable growth.
Considering the contemporary trends of global market, it is evaluated that investors ask for the
risk reports for respective companies to conduct a transparent risk disclosure procedure. This
pattern of risk disclosure is significantly increasing in the global field, especially with respect to
the accounting practice to understand the associated risks and uncertainty (Grody, Hughes &
Toms, 2010). Considering the severity of the associated aspects, the study highlighted different
fields related with risk disclosure and management. Linsley & Shrives (2006), states that risk
disclosure is one of the most crucial aspects that helps in improving the efficiency of the capital
market’s (Linsley & Shrives, 2006).
According to the study findings of Linsley and Shrives (2006), risk disclosure can be
identified as the necessity of corporate organizations to concentrate on the numerical financial
reporting to reveal any kind of underlying factors, which are associated with risks. Corporate
disclosure has a form of risk disclosure and considers as the initial form of investment protector.
Contextually, it has been evaluated that there are several types of risks associated with the

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corporate organizations. Contextually, Linsley and Shrives (2006) further highlighted that there
are six types of risks including financial risks, operational risks, empowerment risks, technology
risks, integrity risks, and strategic risks. On a similar note, Manes-Rossi, Nicolo & Orelli (2017)
asserted that financial instruments and different derivatives are able to portray the frequent risks
associated with the organizational operations. Contextually, it can also be stated that the risks are
always company specific and has an in-depth impact on organizational aspects (Manes-Rossi,
Nicolo & Orelli, 2017).
Business climate change is one of the new risk factors, which is able to change the aspects
of the business and industries’ drastically. In the context of company’s financial risks, the trend
of risk reporting is one of the emerging aspects through which companies can develop a narrative
approach for disclosing their risks. Risk related information can be disclosed with a descriptive
manner, which can be prevailed as quantitative risks. The quantifiable risks, which heavily
incorporated and integrated within the different companies’ financial statements, can be more
meaningful and effective for the investment decision makers (Manes-Rossi, Nicolo & Orelli,
2017; Grody, Hughes & Toms, 2010).
Considering the research findings of Ryan (2012), risks reflect the random variation within
the corporate organizations in terms of their present economic performances, as well as,
available information. Risk culture of a company can suggest the company’s capability to report
the risk exposures within a specific time span. The risk culture influences the organizational
culture, employees, and stakeholders to take risks for the sake of organizational betterment.
Woods, Linsley & Maffei (2017) stated that incentives among the executives can play a
distinctive role in encouraging to the organizations to take high risks. An appropriate risk culture

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can be prepared by addressing the risks along with managing it accordingly. However, several
researches have significantly highlighted that risk culture and risk measuring is still in the
practice phase. This is because risk management aspect is full of uncertainty and can lead to the
failure as well. Therefore, it needs comprehensive practices with the behavioral elements to
make it effective (Woods, Linsley & Maffei, 2017).
Investments and Its Related Uncertainty
The term ‘investment’ is allied with the perception of an asset, where individual spend
money to generate future income. According to Stokey (2013), investment has two significant
inputs for a corporate organization such as projects and cash. Projects can lead towards specific
investment opportunities for the organizations. Most often, the investors are following the path
of ‘wait and see’ strategy, which can be portrayed that investors are uncertain regarding the final
outcome of their investments. It takes time to learn the investment strategy by observing
previous investment decisions and its related aspects along with the final outcomes. Additionally,
from the research conducted by Stokey (2013), it is also highlighted that investors are the key
component, who are associated with the investment along with the risks in the company. They
are the prime element, who needs to know about the companies’ situation along with its overall
associated risks. The uncertainty of investment is associated with final outcome. Diversification
in investment may not assure the profit or guarantee about the amount of loss. Due to this reason
investment involves is significantly associated with risks. Considering the study findings of
Emsbo-Mattingly (2014), it can be stated that the value of investment can fluctuate over time so
that the respective investor may either gain profit or incur loss on the investment made. Based on
the understanding of practical field of investment and its uncertainty aspects, Emsbo-Mattingly
(2014) also provided certain issues regarding business cycle, investment strategic approach,

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different phases of business cycle and its relation with investment and asset class performance
pattern among others. This can help in understanding the market uncertainty, which can further
assist in taking the right steps for the investment as well (Emsbo-Mattingly, 2014).
Contextually, Levišauskait (2010) highlighted that the examination of investment goals,
risk tolerance of the environment, and diversified investment portfolio must be maintained
before and during the investment on a particular field for individual investment. According to
Levišauskait (2010), these are the preliminary aspects, which should be clarifying the associated
risks. Besides, Bloom, Bond & Reenen (2007) emphasized that “irreversibility higher uncertainty
reduces the responsiveness of investment to demand shocks”. Based on the findings of Alao &
Adebawojo (2012), it can be stated that uncertainly may increase cautions relating to the value
making organization at the time of investment. Stokey (2013) evaluated that the intensity of
investment in a specific field can be an irreversible decision. In order to depict about the
intensity of investment within a comprehensive organizational environment, Stokey (2013) also
stated that it has distinctive trait, which is identical to the putty-clay character. The
characteristics portray “flexible ex ante” (forecast) but “fixed ex post” (result). In addition,
investment has such features, which can be possessed in a relaxed manner. The core traits of
investment can be compared with a model that has costly reversibility and complexity, which
often includes a similar conclusion
Risk Disclosure and Related Aspects
According to the report of Financial Reporting Council (2014), risk disclosure is a form of
document, which can help in disclosing all the potential risks associated with the future trading.
The concept of risk disclosure is emerging in the present day, because of security development

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among the companies. Risk disclosure is important for the assisting the stakeholders, investors,
and respective companies. Furthermore, it also assists in gaining adequate knowledge regarding
their upcoming associated risks and its possible mitigation process. Considering the future
prospective of the risk assessment, risk disclosure is essential and prime most aspect for all the
existing companies, which deals with comprehensive financial field operation. According to
Adamu (2013), risk disclosure is a necessary aspect in organizational environment for
maintaining corporate transparency.
Based on the study findings of Adamu (2013), it has been observed that corporate
transparency can enhance investors’ confidence. Therefore, on the basis of proper understanding
of in-depth risk disclosure, it can be stated that inadequate disclosure indicated towards the lack
of superior information exposure to the investors. This is only possible to mitigate by
incorporating professional risks analyzer and appropriate analysis of associated risks.
Contextually, Cordazzo, Papa & Rossi (2017); Heinle & Smith (2017) both agreed on the fact
that risk disclosure is one of the essential aspects for portraying the efficiency of respective
capital market. Moreover, research findings of both Woods, Linsley & Maffei (2017); Grody,
Hughes & Toms (2011) agreed on the fact that there are several types of risk disclosure, which
can be adopted by different companies according to their organizational infrastructure, previous
associated risks’ patterns, and the level of vulnerability among others. On a similar note, Duffy
(2014) opined that traditional periodic disclosure is a type of numerical reporting, however, it not
appropriate for all types of risk disclosing due to its insufficient focus on associated risk factors.
Based on the Miihkinen (2013)’s research findings, it can be evaluated that most often investors
need reliable, as well as, feasible information on the associated risks of the respective companies.

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Such type of information is able to portray not only the financial statement of the companies but
also the value of the existing assets and further prospects as well. Across the globe, there are
different countries that mandate risk disclosure for the corporate firms, which ultimately assist
the overall investment process. On a contrary, Abraham & Shrives (2014) stated that risk related
information is not comprehensively useful for the process of risk assessment with respect to the
investors. Additionally, Abraham & Shrives (2014) also found that there are certain problems in
the existing risk assessment and reporting system, which needs to be improved. Considering
different countries’ risk disclosure aspects, the book published by Great Britain: Parliament,
House of Lords, European Union Committee (2010) highlighted that lack of coherence and less
transparency both are considered as problems in different firms along with the lack of risk
related qualification among the organizational people.
Manes-Rossi, Nicolo & Orelli (2017) supported the fact of lack of qualification among the
corporate people, who are directly related with the risk assessment programs is the critical issue
for the respective organizations. On a similar note, Abraham & Shrives (2014) emphasized that
provision of risk disclosure is not completely fruitful for a group of investors. This is because
responsible managers, who report the risk disclosure maintains it in a symbolic manner rather
than substantive approach due to which, associated group of investors are unable to obtain clear
information regarding the related risks (Abraham & Shrives, 2014).
On the other hand, from the research findings of Mokhtar & Mellett (2013), it is observed
that mandatory risk disclosure standard can be effective for the companies because there are still
low levels of compliances found in the companies. With the help of the standards, the companies
with low level compliances can achieve a better position in risk disclosure. Contextually, it also

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evaluated that voluntary risk disclosure cannot be appropriate for the companies, as they are not
taking the requirements seriously. According to Manes-Rossi, Nicolo & Orelli (2017); Mokhtar
& Mellett (2013), voluntary risk disclosure is a procedure, wherein the companies take part in a
selective manner and does not even produce a narrative and past-oriented report for better
assistance of their investors.
Based on the research of Manes-Rossi, Nicolo and Orelli (2017), it is highlighted that
integrated report of risk disclosure which considers the traditional financing report with present
risk disclosure is the best possible way to maintain transparent risk disclosure to the investors.
Considering the factors related with the risk disclosure and the regulatory regimes of associated
risks reporting, Elshandidy, Fraser & Hussainey (2013) evaluated that proper risk disclosures
should be encouraged rather than mandate the process. Miihkinen (2013) supported that fact and
provided an inference of Finland, wherein companies are maintaining the procedure of risk
disclosure regulation to improve the quality along with upholding the standards as well.
A narrative risk reporting is always appropriate for the companies, as well as, the investors.
Risk-related information must be reported in a descriptive manner, through which investors are
able to understand the quantitative approach of risks (Mokhtar and Mellett 2013; Manes-Rossi,
Nicolo & Orelli, 2017). According to Woods & Linsley (2017), quantified risk disclosure is
appropriate for the investors, as these specific type of risk reporting can assist in adequate
understanding of the associated risks from financial statements in a more meaningful and useful
manner. This integrated system has also helped in making decisions for further investments.
Based on the findings of Manes-Rossi, Nicolo & Orelli (2017); Grody, Hughes & Toms (2010)
quantifiable risk disclosure is more appropriate as compared to the qualitative risk disclosure for

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the investors. Lack of support in terms of methods and techniques of the risk information may
hamper the appropriateness of risk reporting. Contextually, Linsley & Shrives (2006) derived
that monetary terms can be highlighted as issues associated with risk disclosure. Based on the
study findings of Grody, Hughes & Toms (2010), it was also depicted that in recent time,
nominal transactional values for risk reporting is introduced within respective market region. It
significantly became popular among the companies; however, some of them were unable to
utilize it due to their internal complexities (Grody, Hughes & Toms, 2010).
Risk Management
Based on the discussion of the above mentioned sections’, the study is able to find out the
basic ideas regarding the associated risks with financial statements, uncertainty in investments,
risk reporting, and appropriateness of risk disclosure. In addition, it was also able to determine
other risks related aspects that can influence the overall corporate operations. Considering the
understanding of prior discussions, in this section, the study is highlighted the risk management
approach along with its related theories, which can strengthen the corporate organizational
aspects to mitigate the negative impacts of associated risks. Additionally, it can also help in
maintaining the appropriate risk disclosure policies. The concepts of risk, risk disclosure, as well
as, the risk management are emerging areas that can significantly affect the business operation
along with its investment decisions. On the basis of modern researches, it is found that due to
globalization, contemporary organizations become prone to risks. According to Mwakima
(2014), due to various financial scandals, the global companies have become more aware of the
importance of transparency and risk management as the effective practice for companies.

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Based on depiction of Szafranko (2017), risk management deals with varied sets,
principles, and frameworks that can handle the associated risk factors of respective
organizations. Considering the ISO guidelines of the risk management aspects, Szafranko
(2017); UNECE (2014) reported that there are three components associated with risk
management. This includes descriptive factor, probability, and consequence factor. In this
context, descriptive factor of risk management portrays different future events with respect to the
organizational corporate dealings and helps in forecasting the effects of the operations as well.
Probability factor assists corporate firms to gain knowledge on the chances of future events,
while the consequence factor focuses on estimating the associated costs of the events. With the
assistance of these risk management aspects, existing companies are able to disclose their risks,
possible future impacts, and probable changes in the corporate environment. In the context of
changing corporate world and demands, companies must adopt new concepts in order to
maintain their existence in the market competition. On a similar note, it is evaluated that
stakeholders of different companies demand complete risk disclosure, better control on identified
risks, and manage the scenario completely.
According to Soin & Collier (2013), considering the present requirements of markets,
corporate firms are raising their awareness on enterprise risk management (ERM) system. It
helps to control the internal mechanisms and deals with risk management aspects as an element
of appropriate risk governance. Based on the report of Financial Reporting Council (2014a), the
ultimate responsibility of risk control is allied on the corporate board of the individual
companies. Management of the individual firms should pay attention on regular practices and
strategies of operations for the purpose of controlling the risks. Considering the standards of risk
management and other risk related aspects, there are certain government agencies that have

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several corporate financial security and investment related Acts and standards. In this particular
context, the (IASB) and AASB among other names are highlighted. These agencies provide the
financial report standards to the companies and deals with the security along with investments
related legal aspects, inter-agency coordination, as well as, provide assistance in companies’
financial operations and risk management policies (Deloitte Global Services Limited, 2017;
Australian Accounting Standards Board, 2017).
Theoretical Framework
Considering the above description of different literatures on uncertainty of investment, risk
disclosure, and risk management, it is evaluated that the further final report will be developed
based on certain variables. This includes investment uncertainty, investors’ interests, risk
disclosure, risk reporting, quality of risk disclosure, and risk management. Based on the
theoretical understanding developed from literature reviews, it can be stated that these factors are
interrelated and helps in generating combined effects on companies’ financial statements. The
projected research questions also highlighted the areas of risk disclosure in terms of obtaining
beneficial impacts for investors and facilitation aspects with respect to risk management in
controlling uncertainties of investments. In relation to the projected objectives and research
questions, the present study portrays the research hypothesis, which will help in developing
further analysis on the subject issue in the final report.
Research Hypothesis
The research hypotheses are provided below:
Hypothesis 1: Quality risk disclosure is essential for investment decision making
Hypothesis 2: Quality risk disclosure assists in controlling the uncertainty of the investments

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Hypothesis 3: Risk management helps largely in investment decision-making process
Hypothesis 4: Risk management controls the uncertainty of investments
The following conceptual theoretical framework and flow-chart diagram will assist in
understanding the conceptual map of final report:
Figure 1: Conceptual Framework

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Figure 2: Flow-Chart Diagram

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Materials and Methods
Instruments
Before discussing the instruments, a brief idea about research methodology needs to be
discussed. Methodology helps in justifying the use of a specific research method, where
theoretical along with systematic analysis is applied considering the study conducted.
Methodology comprises two key categories including materials required, as well as, the methods
used in the research. Moreover, it is evident that the researcher cannot control the variables
present and can only report the happening mentioned through their research. Research methods
may vary between analytical and descriptive, fundamental, applied, qualitative, quantitative as
along with empirical and conceptual among others. Considering the study, qualitative data needs
to be taken for conducting the research, because risk disclosure or risk management requires
diverse explanations, which has less numerical data. Different risks associated with the
investment in the modern day, which can only be evaluated through qualitative research and
cannot be measured numerically in few instances. Qualitative data will thus help in determining
the in-depth understanding of the topic with the use of non-statistical analysis (Goodwin, 2012;
Silverman, 2016).
Additionally, it should be kept in mind that data is subdivided into two types, primary as
and secondary data. Primary data is collected by the researchers themselves, while secondary
data is analyzed data that are already available in the forms of journals, articles, annual reports,
news magazines, case studies, as well as, scandal reports among others. Taking the study into
concern, secondary data will be used for analyzing the adverse effects considering non-
disclosure of risk in the financial statements. From the above mentioned secondary data sources,
case studies and annual reports can be used as instruments for conducting the research because

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they are reliable and contains the exact information of the activities of the organization in the
past. Case studies helps in simplifying the complex concepts associated with the organization
(Goodwin, 2012; Silverman, 2016). Moreover, the real life situations are exposed through case
studies, where data is easily assessed. Annual reports will also help the researchers in finding the
exact information regarding the amendments made by the company considering accounting
policies along with the standards. This will help in providing a clear view of the financial status
of the organization. Thus, these reliable instruments can be easily be used in the research paper
to determine the areas, where the organization is lacking. In addition, this will also help in
determining the investments, which are secure and profitable in the future. Furthermore,
uncertain situations, which can be harmful for the investors will also be addressed through the
case study and annual reports of the organization, which directly enriches the research paper
(Goodwin, 2012; Silverman, 2016).
Additionally, the secondary data analysis conducted taking case studies as instruments will
provide an additional benefit for further research work in the future, where they can access an in-
depth financial analysis of the organization. The importance of risk disclosures, and uncertainties
related to it along with better processes to risk management will be explained through this
research study. It is evident in the study that case study approach will help in qualitative research
because of its information, facts, figures, and financial statements. Moreover, validity and
reliability are important aspects of case studies. Reliability depends upon accurate representation
of qualitative data, which provide consistent results over time. Evaluation of quality along with
providing explanations is the key purpose that helps to generate better understanding. The
validity of the qualitative data expires after a specific period because new instances of
amendments, policies, standards, accounting policies, and financial theories. Hence, qualitative

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research will help in delivering better results with the support of secondary data from diverse
resources (Goodwin, 2012; Silverman, 2016).
Procedure
Qualitative research should be followed in a step-by-step manner or sequentially, which
provides an easier and faster way to find the data required and analyze them. Secondary data
should be taken into consideration during qualitative research. Secondary data, as mentioned in
the above section can be evaluated from academic fields, company reports, news paper articles,
as well as, the books. Hence the procedure of qualitative research starts with a search strategy,
which is described in the table below:

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Inclusion and Exclusion Criteria.
Inclusion criteria are those characteristics, which the prospects in the study should be
included, while exclusion criteria are the ones that should be included in the overall study.
Inclusion criteria help in generating minimum outcomes, whereas exclusion criteria do not have
any outcomes. For successful outcomes of the study, relevant inclusion criteria need to be

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selected. The study will include secondary data, which have been published in the last ten years.
Hence, the data used are valid and reliable for analyzing the research question.
Data Analysis
Data Analysis is the final aspect, where the methodology part ends. According to the
qualitative research, thematic analysis will be the best suitable forms for evaluating the
information gathered, as it will help in emphasizing examining, pinpointing, as well as, recording
themes or patterns within the data. Themes need to discussed, as it is the pattern that surrounds
the data and is often considered essential for describing the phenomenon associated along with
the research question specifically. There are two key themes such as risk disclosure and risk
management, upon which the entire study rotates around. Sub-themes include uncertainties
related to non-disclosure of risks by the organizations and up to what extent it can affect the
invested capital of the shareholders. Additionally, the quality improvement concerning the risk
disclosures needs to be addressed, and clarifies that the objective is also a part of sub-themes.
Themes and sub-themes are combined together for answering the research question arising
throughout the study objective. Qualitative data along with thematic analysis is necessary to
complete the study, as it justifies the research in clear and concise way. Secondary data are
analyzed in the research study with the help of diverse themes along with sub-themes. Hence, the
research study will be enriched with the use of thematic analysis as along with the qualitative
data because of the clear vision and successful completion of the objective. Moreover, based on
the projected research assumption statements, the gathered data will be analyzed with the
assistance of grounded theory. It is a clear inductive method, which helps in providing the
research towards a systematic path.

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Taking into concern, the research question and uncertainties, which are associated with the
investment through buying of shares, property or assets needs to be disclosed, as it will lead to a
successful transaction in the market place. This helps in enhancing the brand value of the
organization. It was evident in the global market that uncertainties related to investment have
increased to higher levels at present as compared to the past. Hence, disclosures have become
significantly essential for the investors for the purpose of analyzing the market value. Thus, with
the help of thematic analysis, the risk disclosures and its importance in the global market can
easily be assessed, which will act as an eye-opening example for the organizations as well as the
new researchers. This will also assist in motivating the study. The other research question,
focusing on the importance of risk management system will be analyzed with the use of themes,
where discussions related to issues based upon risk will be addressed. Moreover, quality is the
key aspect, where qualitative data can be considered to be quite helpful and will help in
successful completion of the study objective. Subsequently, thematic analysis with the support of
grounded theory can be the best option considering the research study. The following flow-chart
diagram is able to create a clear understanding regarding the methods:

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Figure 3: Flow-Chart Diagram on Research Methods
Limitations
Considering the selected methods and techniques for further data analysis in final report,
there are certain drawbacks highlighted in the present study. Thus, the present study considers
secondary data for the data collection method and primary data is excluded from the research
methods. The issue of time constraints and inappropriate circumstances, primary data will not be
gathered for analysis. On the other hand, the proposal will select qualitative research method,
which can be reflected in a rigid manner in terms of data observation and information
interpretation. Considering the identified issue based on the subject matter of the study, it can be
also stated that reviewing the cases, annual reports of the companies are completely based on the
researchers’ ability of interpretation. Hence, due to this particular reason, the data can be
relatively infringed with influences of biasness.

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Furthermore, the data will only utilize limited number of case studies and companies’
reports, which may not able to portray a clear picture regarding the risk management in relation
with risk disclosure. Themes and sub-themes are also selected by the researcher, which may
indicate biasness of selective resources and data. Considering these stated aspects, it can be
evaluated that the prime limitations of this proposal are allied with lack of primary data, data
rigidity, and relative biasness on the selection of analysis process along with resources.

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References
Abraham, S., & Shrives, P. J. (2014). Improving the relevance of risk factor disclosure in
corporate annual reports. The British Accounting Review, 46(1), 91-107.
Adamu, M. U. (2013). The need for corporate risk disclosure in the Nigerian Listed Companies
Annual Reports. IOSR Journal of Economics and Finance, 1(6), 15-21.
Alao, E. M. & Adebawojo, O. (2012). Risk and uncertainty in investment decisions: An
overview. Arabian Journal of Business and Management Review, 2(4), 53-61.
Australian Accounting Standards Board (2017). Australian accounting standards board.
Retrieved October 21, from http://www.aasb.gov.au/
Bloom, N., Bond, S. & Reenen, J. V. (2007). Uncertainty and investment dynamics. The Review
of Economic Studies, 74(2), 391–415.
Cordazzo, M., Papa, M., Rossi, P. (2017). The interaction between mandatory and voluntary risk
disclosure: A comparative study. Managerial Auditing Journal, 32(7), 682-714.
Deloitte Global Services Limited (2017). International accounting standards board (IASB).
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Elshandidy, T., Fraser, I., Hussainey, K. (2013). Aggregated, voluntary, and mandatory risk
disclosure incentives: Evidence from UK FTSE all-share companies. International Review
of Financial Analysis, 30, 320-333.

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Emsbo-Mattingly, L. (2014). How to invest using the business cycle. Retrieved October 21, from
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Financial Reporting Council (2014). Guidance on risk management, internal control and related
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