Abstract
Integrated Reporting (IR) and Enterprise Risk Management (ERM) are two ways that have to converge into the “integrated thinking” approach, as both of them push towards a new long-termism in management decisions. Risk management aims to protect company value, this way making the business sustainable over time; so risk issues should be well considered into the integrated report and, in the meantime, company providing the integrated report should demand for the existence of an ERM. Analyzing the companies of the IIRC Pilot Programme we find that: the number of companies filling the IR and contemporaneously adopting the ERM is increasing over time. However, shifting from the traditional to the integrated report doesn’t imply a simultaneous adjustment to an integrated risk management, but when both approaches are present companies have higher performances with respect to those that only do the IR. This evidence supports the hypothesis that ERM can be useful to make the integrated thinking effective.
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Notes
- 1.
The content analysis is “a wide and heterogeneous set of manual or computer-assisted techniques for contextualized interpretations of documents produced by communication processes in the strict sense of that phrase (any kind of text, written, iconic, multimedia, etc.) or signification processes (traces and artifacts), having as ultimate goal the production of valid and trustworthy inferences” (Tipaldo 2014).
- 2.
The list of the companies of the Business Network of the International Integrated Reporting Council is updated up to January 2015.
- 3.
We computed the average by the ratio between the total number of words in each report and the number of reports considered.
- 4.
Sometimes companies refer to the ERM using different expressions as integrated risk management (IRM) or enterprise-wide-risk-management (EWRM). We searched for ERM evidence in the annual reports, sustainability reports and integrated reports
- 5.
We remind the reader that information about 2014 is incomplete.
- 6.
The numbers in brackets represent identification keys that the software atlas it attaches to specific words and documents. In reading the quotes they can be disregarded.
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Bertinetti, G., Gardenal, G. (2016). Enterprise Risk Management and Integrated Reporting: Is There a Synergism?. In: Mio, C. (eds) Integrated Reporting. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-55149-8_11
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DOI: https://doi.org/10.1057/978-1-137-55149-8_11
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