Market reporting

Successful financial services organisations recognise that greater transparency and clear explanation of the rationale for business strategies will be critical in boosting market confidence and securing access to limited capital in the wake of the financial crisis.

Crucial considerations include effective explanation of the risk profile and the underlying strategy and implications. Smart firms are therefore looking beyond basic compliance to provide real insights into the appetite for risk, the priorities and assumptions governing risk management and how risk influences key business decisions.

Forward-looking companies are also looking closely at how to influence and respond to planned changes in market reporting to ensure they reflect the realities of their business and provide more relevant and reliable information for analysts and investors. Proposed developments include modifications to fair value measurement, a finalised IFRS for insurance contracts and the increasing harmonisation of IFRS and US GAAP.