According to the Basel Committee on Banking Supervision: Risk management reports should accurately and precisely convey aggregated risk data and accurately reflect risk. In addition, reports should be reconciled and validated. The reports should also be accurate and precise to ensure a bank’s board and senior management can rely with confidence on the aggregated information to make critical decisions about risk.

Risk management reports should also cover all material risk areas within the organization. The depth and scope of these reports should be consistent with the size and complexity of the bank’s operations and risk profile, as well as the requirements of the recipients

Risk management reports should communicate information clearly and concisely. Reports should be easy to understand yet comprehensive enough to facilitate informed decision-making. In addition, reports should include meaningful information tailored to the needs of the recipients.

The board and senior management should set the frequency of risk management report production and distribution. Frequency requirements should reflect the needs of the recipients, the nature of the risk reported, and the speed at which the risk can change, as well as the importance of reports in contributing to sound risk management and effective and efficient decision-making across the bank. The frequency of reports should be increased during times of stress/crisis

Risk management reports should be distributed to the relevant parties while ensuring confidentiality is maintained