The increasing demand for more transparency from the stakeholders' standpoint but also from the stock exchanges regulators, and auditors calls for new rules for risk management reporting in the annual reports.

Besides the corporate governance principles, enterprises are thus required to provide detailed information regarding notably the shareholder value creation and the risk factors.

Risk factors have to be described taking into account the activities of the company and its financial situation. In addition risks have to be classified according to their importance with respect to the activities. The link between risks and company's activities have to be clearly established.

Finally risk reporting rules require a risk quantification and monitoring and a detailed analysis of risk measurement and risk coverage.

This matter has been addressed by Gecalux during a workshop at the Annual Conference of the AMRAE (Association pour le Management des Risques et des Assurances de l'Entreprise). At this occasion, we presented a methodology aiming at identifying risks and volatility sources, measuring the financial impacts of risks and presenting the results in accordance with usual financial indicators. Such a methodology thus enabling to comply with risk management reporting requirements and to connect closely the risk management strategy and the financial and strategic objectives of the company.