As reported by Continuity Central last year, the UK government is considering changes to UK corporate governance, which would include the statutory requirement for some organizations to prepare an annual Resilience Statement.
To help organizations understand this requirement the ICAEW has issued new guidance ‘The Resilience Statement – everything you need to know’.
Key points of the ICAEW guidance include:
- The new Resilience Statement will subsume the existing Going Concern and Viability statements. Company directors will have to report on matters that they believe to be material and explain how they have arrived at this judgement.
- Directors will have to disclose how the company is addressing risks or resilience issues, including threats to business continuity, supply chain, and cyber security.
- The new legislation will include the requirement for at least one reverse stress test according to the nature, size and complexity of each business, to be chosen by the company and outlined within the statement.
- The requirement will be applied to all Public Interest Entities (PIEs) that meet the new 750-750 test – large unlisted companies with more than 750 employees and a minimum £750m annual turnover.
- It is expected that the government will have published a draft bill on the proposed reforms later this year. Once the detail is clearer, it is hoped that new legislation will be published in 2023, giving enough time for all stakeholders to get to grips with the new regime.