Dynamic accountability and the role of risk reporting during a global pandemic
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 14 June 2021
Issue publication date: 3 January 2022
Abstract
Purpose
This article lays out some conceptual considerations of how dynamic accountability and risk reporting practices could be tailored during and after a global pandemic.
Design/methodology/approach
This conceptual paper seeks to foster the debate on the crucial role of risk reporting considering the impact and uncertainty caused by the coronavirus disease 2019 (COVID-19) pandemic and stakeholder information needs in this context. The authors draw upon neo-Durkheimian institutional and legitimacy theories and elements of the accounting and risk management literature to discuss the challenges that the pandemic poses to risk recognition and assessment and the subsequent disclosure decision of risk information.
Findings
Risk reporting has its roots in risk recognition and assessment. To live up to their accountability in these times of uncertainty, organisations need to address their stakeholders' new and changing information needs. Ad hoc disclosures and linking risk management and reporting to their business models (BM) would improve the risk recognition and assessment practices and the meaningfulness of the disclosed information. Hence, we provide some examples and discuss potential avenues to address these challenges and adapt risk reporting accordingly.
Originality/value
This conceptual paper contributes to the risk reporting and accountability research fields. Previous studies on communication during a crisis have focused on sustainability reporting. Thus, this study contributes to that literature by considering the role of risk reporting in times of an unexpected large-scale global crisis, such as the COVID-19 pandemic, and by highlighting possibilities for moving risk reporting towards becoming more accountability based.
Keywords
Acknowledgements
The authors thankfully acknowledge the insightful comments from two anonymous reviewers and the guidance from the handling guest editor Giulia Leoni and the guest editorial team during the revisions of this article. The authors also thank Evelyn Braumann for her useful comments.
Citation
Crovini, C., Schaper, S. and Simoni, L. (2022), "Dynamic accountability and the role of risk reporting during a global pandemic", Accounting, Auditing & Accountability Journal, Vol. 35 No. 1, pp. 169-185. https://doi.org/10.1108/AAAJ-08-2020-4793
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited