Businesses should report opportunities alongside risks: ACCA report

LONDON: Businesses may be spending so much time preparing for what could go wrong that they are overlooking what could go right.

That is the central message from new research by ACCA, which argues that corporate reporting has become heavily skewed towards risks, often at the expense of opportunities that could drive growth, innovation and long-term value creation.

The report examines how business leaders, particularly finance professionals, approach the challenge of reporting opportunities while balancing concerns around commercially sensitive information, organisational preparedness and stakeholder expectations.

According to the research, a natural human tendency to focus on downside risks has become deeply embedded in corporate reporting practices. While such caution may be understandable amid geopolitical tensions, economic uncertainty and market volatility, ACCA warns that an excessive emphasis on risks can unintentionally restrict investment and make it harder for organisations to secure the capital needed to pursue new opportunities.

The study argues that opportunities deserve a more prominent place in corporate disclosures because they often sit at the crossroads of strategy, sustainability and capital allocation decisions. By clearly articulating growth prospects alongside risks, companies can provide investors and stakeholders with a more complete picture of their future potential.

A key finding is that organisations should build internal alignment around opportunities before communicating them externally. Businesses need confidence in their strategy, execution capabilities and long-term objectives before presenting opportunity-driven narratives to investors and the wider market.

The research also highlights the growing importance of linking sustainability ambitions with financial outcomes. Rather than treating environmental, social and governance considerations as separate from commercial objectives, companies are encouraged to evaluate both through a balanced lens.

The report notes that sustainability benefits should not automatically outweigh financial considerations, nor should economic gains be pursued without regard for broader environmental or social impacts. Instead, organisations should assess opportunities pragmatically, considering both dimensions when determining long-term value.

Commenting on the findings, ACCA head of corporate reporting insights, sustainability, Hsiao Mei Chow said organisations must carefully consider when and how they communicate opportunities.

She noted that business leaders and professional accountants need to tailor disclosures to their specific circumstances while ensuring information remains useful to stakeholders, protects trust and safeguards competitive advantage.

The research also revealed a broader industry challenge: the absence of a universally accepted definition of what constitutes an “opportunity” in corporate reporting. Participants called for greater collaboration between policymakers and industry practitioners to establish common criteria, which could improve consistency and comparability across sectors and jurisdictions.

As reporting requirements continue to evolve, ACCA believes the conversation must move beyond compliance alone. The report argues that stronger collaboration, clearer communication and a more balanced view of risks and opportunities will be essential for organisations seeking to build resilience and attract investment in an increasingly uncertain world.

In short, while risk management remains critical, ACCA’s message is that growth stories matter too. Companies that can explain not only the threats they face, but also the opportunities they are pursuing, may be better positioned to win both investor confidence and future capital.