Disclosure of overlapping risks between financial disclosure and non-financial reporting: analysis of overlapping risks in audited reports: Disclosure of overlapping risks between financial disclosure and non-financial reporting

Taban Saadi Pasha

doi:10.63841/iue31650

Authors

Taban Saadi Pasha Ministry of Higher Education and Scientific Research, Directorate of Financial Control – Erbil, Kurdistan Region, IRAQ Author https://orcid.org/0009-0002-7698-2488

DOI:

https://doi.org/10.63841/iue31650

Keywords:

Overlapping, risks, financial disclosure, non-financial reporting, audited reports

Abstract

The demand for information by stakeholders has led to rise in the financial and non-financial disclosures. This study focused on the niche of overlapping risks between financial disclosure and non-financial reporting. The study sought to find out the extent to which these risks appear in financial statements and non-financial reporting. The study focused on Emirates NBD and used a mixed method approach, focusing mostly on case study, content analysis in qualitative aspect as well as Python to quantify the results. The study revealed an interesting mix of results. Five overlapping risks were found which are regulatory, reputation, cybersecurity, human capital and climate risk. Results showed that for the most part risks were disclosed more in the non-financial reporting compared to the financial disclosures with a glaring disparity on consistency levels. Regulatory risks showed excellent consistency of 4.7 out of 5 reflected in the ratio of 124:117 for the ESG and financial statement respectively. The financial recognition revealed that all the risks were disclosed through impairments. The financial recognition gap analysis showed major gaps on climate risk and human capital which reflected low integration and potential for greenwashing tendencies in terms of the connectivity analysis climate risk and regulatory risk were found to be the most connected which revealed integrated risk understanding. Siloed thinking was reflected in the lack of connection between cybersecurity and reputation. Overall, the company showed a forward looking and balanced future focus. The study was limited in terms of generalization as it particularly focused on one company. Future studies are recommended to widen their sample size as well as evaluate overlapping disclosures in a longitudinal way.

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Author Biography

Taban Saadi Pasha, Ministry of Higher Education and Scientific Research, Directorate of Financial Control – Erbil, Kurdistan Region, IRAQ

Ms. Taban Saadi Pasha, an Assistant Lecturer at the Directorate of Auditing and Finance within the Ministry of Higher Education. I am currently serving as a lecturer in the Department of Accounting at knowledge University. I hold a Master of Science (MSc) in Accounting, which I obtained from Near East University in Turkey–Cyprus in 2022. My academic and teaching interests focus on the fields of accounting and finance.

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