Abstract
Banks are considered as risk-taking enterprises and therefore, it is expected that there should be disclosures of the relevant risks and the management thereof. The disclosures enables stakeholders and shareholders to assess and manage their risk positions in an organisation. The 2008 financial crisis has emphasised the need for high-quality risk management and the relevant disclosures, specifically in the banking sector. Providing significant risk disclosures helps banks to be transparent to their stakeholders and shareholders, who can then make informed decisions based on the banks’ performances, risk profiles, business profiles and risk management. Deriving from the literature reviewed, this study evaluates risk management disclosure requirements in terms of King IV and Basel III that should assist stakeholders in making informed decisions and enhances transparency in the banking sector. Through this, the study then develops a research instrument and using this instrument to evaluate whether the top four banks in South Africa comply with the risk management disclosure requirements. The results were gathered by analysing the annual integrated reports together with the Basel III reports of the top four banks. The results of the study indicate that only one, out of the top four banks did not fully comply with the risk management disclosure requirements of Basel III. The study did, however, indicate that all the top four banks complied with the risk management disclosure requirements of King IV...
M.Com. (Computer Auditing)