Save the analysis, charts, numbers, and glowing reviews for the report itself. The executive summary is also an important way for you, as the entrepreneur, to determine which aspects of your company have the clearest selling points, and which aspects may require a bit more explanation. Investors, lenders, executives, managers, and CEOs are busy.
Executive Summary Financial Markets and Transparency One of the essential functions of financial markets is to price risk to support informed, efficient capital-allocation decisions.
Accurate and timely disclosure of current and past operating and financial results is fundamental to this function, but it is increasingly important to understand the governance and risk management context in which financial results are achieved.
The financial crisis of was an important reminder of the repercussions that weak corporate governance and risk management practices can have on asset values.
This has resulted in increased demand for transparency from organizations on their governance structures, strategies, and risk management practices.
Without the right information, investors and others may incorrectly price or value assets, leading to a misallocation of capital. Financial Implications of Climate Change One of the most significant, and perhaps most misunderstood, risks that organizations face today relates to climate change.
While it is widely recognized that continued emission of greenhouse gases will cause further warming of the planet and this warming could lead to damaging economic and social consequences, the exact timing and severity of physical effects are difficult to estimate.
The large-scale and long-term nature of the problem makes it uniquely challenging, especially in the context of economic decision making.
Accordingly, many organizations incorrectly perceive the implications of climate change to be long term and, therefore, not necessarily relevant to decisions made today.
The potential impacts of climate change on organizations, however, are not only physical and do not manifest only in the long term. To stem the disastrous effects of climate change within this century, nearly countries agreed in December to reduce greenhouse gas emissions and accelerate the transition to a lower-carbon economy.
The reduction in greenhouse gas emissions implies movement away from fossil fuel energy and related physical assets. This coupled with rapidly declining costs and increased deployment of clean and energy-efficient technologies could have significant, near-term financial implications for organizations dependent on extracting, producing, and using coal, oil, and natural gas.
While such organizations may face significant climate-related risks, they are not alone. In fact, climate-related risks and the expected transition to a lower-carbon economy affect most economic sectors and industries.
While changes associated with a transition to a lower-carbon economy present significant risk, they also create significant opportunities for organizations focused on climate change mitigation and adaptation solutions.
For many investors, climate change poses significant financial challenges and opportunities, now and in the future. At the same time, the risk-return profile of organizations exposed to climate-related risks may change significantly as such organizations may be more affected by physical impacts of climate change, climate policy, and new technologies.
Both investors and the organizations in which they invest, therefore, should consider their longer-term strategies and most efficient allocation of capital.
Organizations that invest in activities that may not be viable in the longer term may be less resilient to the transition to a lower-carbon economy; and their investors will likely experience lower returns.
Compounding the effect on longer-term returns is the risk that present valuations do not adequately factor in climate-related risks because of insufficient information. As such, long-term investors need adequate information on how organizations are preparing for a lower-carbon economy.
Furthermore, because the transition to a lower-carbon economy requires significant and, in some cases, disruptive changes across economic sectors and industries in the near term, financial policymakers are interested in the implications for the global financial system, especially in terms of avoiding financial dislocations and sudden losses in asset values.
Given such concerns and the potential impact on financial intermediaries and investors, the G20 Finance Ministers and Central Bank Governors asked the Financial Stability Board to review how the financial sector can take account of climate-related issues.
As part of its review, the Financial Stability Board identified the need for better information to support informed investment, lending, and insurance underwriting decisions and improve understanding and analysis of climate-related risks and opportunities.A new World Bank report shows that climate change will make water supply more erratic and uncertain, with severe consequences on economic growth and political stability.
To avoid this scenario, countries must act now and develop water-efficient policies. CRSTAL RIE ARLINGTON IRGINIA SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION I am pleased to present SIGAR’s High-Risk List report to the incoming Administration and.
30 September - Comprehensive public health action on population ageing is urgently needed. This will require fundamental shifts, not just in the things we do, but in how we think about ageing itself. The World report on ageing and health outlines a framework for action to foster Healthy Ageing.
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3 Report on FINRA Examination Findings | December Selected Examination Findings As the nature and sophistication of cybersecurity threats continue to evolve, even robust cybersecurity programs can be compromised when, for example, an employee opens an email.
President Trump issued Executive Order , Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure on May 11, , to improve the Nation’s cyber posture and capabilities in the face of intensifying cybersecurity threats. EO focuses Federal efforts on modernizing Federal information technology infrastructure, working with state and local.