Oecd legal Instruments

IV.A.8. Foreseeable risk factors. 
Users of financial information and market participants need information on reasonably foreseeable material 
risks that may include: risks that are specific to the industry or the geographical areas in which the company 
operates; dependence on commodities and supply chains; financial market risks including interest rate or 
currency risk; risks related to derivatives and off-balance sheet transactions; business conduct risks; digital 
security risks; compliance risks; and sustainability risks, notably climate-related risks. 
The Principles envision the disclosure of sufficient and comprehensive information to fully inform investors 
and other users of the reasonably foreseeable material risks of the company. Disclosure of risk is most 
effective when it is tailored to the particular company and industry in question. Disclosure about the system 
for monitoring and managing risk is increasingly regarded as good practice, including the nature and 
effectiveness of related due diligence processes.
IV.A.9. Governance structures and policies, including the extent of compliance with national 
corporate governance codes or policies and the process by which they are implemented. 
Companies should report their corporate governance practices and such disclosure should be mandated as 
part of the regular reporting. Companies should implement corporate governance principles set, or endorsed, 
by the regulatory or listing authority with mandatory reporting on a “comply or explain” or similar basis. In 
most jurisdictions, a national report reviewing adherence to the corporate governance code by publicly traded 
companies is published as a good practice to support effective disclosure and implementation of “comply or 
explain” codes. 
OECD/LEGAL/0413
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Disclosure of the governance structures and policies of the company, including, in the case of non operating 
holding companies, that of significant subsidiaries, is important for the assessment of a company’s 
governance and should cover the division of authority between shareholders, management and board 
members. Companies should clearly disclose the different roles and responsibilities of the CEO and/or chair 
and, where a single person combines both roles, the rationale for this arrangement. It is also good practice 
to disclose the articles of association, board charters and, where applicable, committee structures and 
charters. 
As a matter of transparency, procedures for shareholders meetings should ensure that votes are properly 
counted and recorded, and that a timely announcement of the outcome is made.