Which of the following should be the PRIMARY basis for deciding whether to disclose information related to risk events that impact external stakeholders?
Which of the following should be the PRIMARY basis for deciding whether to disclose information related to risk events that impact external stakeholders?
Regulatory requirements should be the primary basis for deciding whether to disclose information related to risk events that impact external stakeholders. This is because failing to comply with regulatory requirements can result in legal penalties and sanctions. It is essential to adhere to laws and regulations to avoid legal repercussions and ensure the organization is operating within the legal framework. While management assertions, contractual requirements, and stakeholder preferences may play a role, regulatory requirements take precedence as they are legally mandated.
C. Regulatory requirements
I believe it should be contractual requirements. What if the organization does not operate in a regulated environment? The organization is bound contractually to disclose information regarding risk events that may impact their customers. I stand corrected though.