Understanding IFRS S2 - Risk Management
Chetan Hans
Partner – Head of CFO Services, ESG & Sustainability Services at Grant Thornton Singapore | ESG & Sustainability Reporting | CFO Advisory | Crypto Accounting | Accounting Advisory | Interim CFO
This article focusses on requirements in IFRS S2 related to Risk Management.
The objective of risk management disclosures is to help users understand how an entity identifies, assesses, prioritizes, and monitors climate-related risks and opportunities.
Disclosures should include:
Processes and Policies:
·?????? Risk Identification and Assessment: Describe the processes and inputs used to identify and assess climate-related risks, including the use of scenario analysis.
·?????? Risk Prioritization: Explain how risks are prioritized relative to other risks.
·?????? Monitoring: Detail the monitoring processes and any changes compared to previous periods.
·?????? Opportunities: Describe how climate-related opportunities are identified, assessed, and monitored.
Integration with Overall Risk Management:
Integrated Disclosures: Avoid duplication by integrating climate-related risk disclosures with overall risk management processes.