MATERIALITY 3: IT’S A RISKY BUSINESS – OR IS IT

Jan 19, 2015 | Blogs

It gave me a big shock.

It really did.

My survey showed corporate risk processes second most influential in determining materiality.

Really?

Don’t get me wrong. It’s not that I think materiality is all grasping opportunity, sunlit uplands and boldly going where no man has gone before.

It’s this: how successful have corporate risk practitioners been at spotting emerging sustainability issues?

Did they spot the dangers of corporate tax?

Were they sensitive to the growing issue of water?

Data privacy?

No! No! No! as Mrs Thatcher might put it.

And the bottom line of my thoughts? Take your main business risk into account when assessing materiality: Yes. Give them pride of place in the process? Now that would be entering into risk.

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