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THERE have been significant improvements in corporate governance disclosures in Singapore companies since 2013, a study has found, though it underlined the need for more attention to be paid to disclosure on areas not stated in the guidelines.
Areas for improvement in disclosure include strategic risk, cyber risk, risk tolerance and fraud risk management, according to the study of over 200-listed companies by the Institute of Singapore Chartered Accountants (ISCA) and KPMG.
The study found that large market captalisation companies have more forthcoming disclosures for a majority of risk governance structures and practices; there is also enhanced clarity in the disclosure of the board's responsibilities in risk governance among Singapore companies.
But more could be done for areas that are not specified in the Corporate Governance (CG) Code, as well as emerging areas of risk governance such as risk tolerance, risk culture and fraud risk management, the study added.
KPMG head of risk consulting Irving Low said that disclosures relating to behavioural factors such as risk culture are not as forthcoming and are not currently featured in the Code.
"With the impending review of the CG Code, this provides an opportunity to consider incorporating more of the behavioural elements influencing risk," he said. "Risk culture is arguably the most critical aspect of risk management because even if you have the best policy and process in place, if it is bypassed due to people not respecting it, the company is exposed to adverse outcomes."