Under the Financial Reporting Council’s 2024 Corporate Governance Code, listed companies*on the London Stock Exchange will need to further evidence internal controls and risk management best practice – and for financial years beginning on or after 1 January 2026, report with greater disclosure transparency.
Provision 29 of Code requires Boards to assess and report on the effectiveness of risk management and internal controls annually, covering both material controls (including financial, operational, and compliance-related risks) and broader risk governance.
Additionally, Boards must explain through a declaration in their annual Reports and Accounts how they have gone about their assessment, the conclusions reached, and any actions that will be taken with a proposed timeline.
“To comply with elements of the UK Listing Rules these companies must apply the Principles of the Code and comply with, or explain against the Provisions.”
www.frc.org.uk
Declaration confidence starts with Decision Focus
A key challenge lies in the subjectivity and complexity of evaluating control effectiveness. Financial controls typically have established audit processes, while operational and emerging risks require more qualitative judgment. Boards must ensure they have robust evidence to support their statements, which may demand enhanced risk reporting and internal assurance mechanisms.
Decision Focus Enterprise Risk Management (ERM) module offers 360° visibility of risks and controls, organisation-wide. Real-time data insights make it easier to (test), assess, document, and deploy new internal controls as necessary and furnish your Board with the reporting they need to make their UK CGC declaration with agility and confidence.
Supporting all annual declaration requirements:
- A robust process for assessing control effectiveness can readily be explained via the declaration and relied upon under challenge
- Positive assurance that where controls are declared effective they truly are, and this can be evidenced
- Clarity about where control deficiencies lie, and the remedial action being taken
Maintain reputation and trust
With increasing focus on accountability and transparency, Decision Focus can ensure your Board has the accurate, reliable controls and risk data needed to demonstrate clear, meaningful declaration and genuine risk oversight.
Supporting a controls-focused culture
A centralised, ‘single source of truth’ for UK Corporate Governance Code data means a seamless, integrated experience and complete assurance’
Evidence To hand
Decision Focus gathers and orders the evidence you need to demonstrate continued compliance. No need to scramble when the regulator says ‘comply or explain.’
Acceptable risk
Mapping your proposed remediate actions against identified risks and their mitigating controls helps your organisation navigate within its acceptable risk limits.
Future compliant
Decision Focus is super-configurable. You can evolve it to meet future regulatory challenges, independently or with our help. We have Risk Management and Regulatory experts on our team.
Any questions?
The Decision Focus team are here to answer your questions.
Any questions?
The Decision Focus team are here to answer your questions.