Educate key stakeholders with actionable, compelling risk reports.
- Gartner client? Log in for personalized search results.
Risk reporting fails when it skips over root causes
Risk reporting is necessary to contextualize risks for decision makers and clarify actions and trade-offs in pursuit of objectives. Detailed risk reports provide a structured framework for understanding the potential impact of various risks on a business’s objectives, thus informing decision making at all levels of an organization.
When risk reports are not actionable, they fail to serve their purpose. Too often, general counsel and other legal leaders focus on reporting activity and efficiency metrics. While useful for tracking functional activity or program progress, they don’t indicate what has increased the organization’s susceptibility to a failure, how to avoid similar mistakes in the future, or the links between risks and executive priorities.
Risk reporting must be actionable
Actionable risk reporting ensures that overall business planning factors in emerging risks and strengthens an organization’s resilience and adaptability.
Shift from key performance indicators (KPIs) to key risk indicators (KRIs)
KPIs, such as training completion rates or help line call volume, don’t typically indicate when an organization is at risk of failure — or the source of the issue. A measurable root cause might be, for example, employee misunderstandings or an overly permissive culture.
Unlike KPIs, KRIs enable legal leaders to spot early warning signs and communicate them to executives, who can then take proactive steps to mitigate the risk.
Standardize risk reporting to simplify decision making
Inconsistent risk reporting can complicate executive decision making. A standard risk reporting template gives stakeholders visibility into a risk’s current state and a clear understanding of their risk exposure.
A six-section template, for example, might include:
Risk overview to provide context on why this is a principal risk the organization needs to focus on
Risk tolerance to define the organization’s level of comfort with the current risk exposure
Risk metrics to indicate whether the risk is within the desired risk tolerance level and whether action plans deliver on their goals
Action plans to demonstrate what measures the organization is taking to address the current risk exposure
Risk mitigation and assurance to inform how the risk is managed in the first line of defense and the level of ongoing oversight provided by the second and third lines
- Assurance results to indicate how effective the material controls are and possible areas of improvement
Use graphics to simplify risk reports
Risk reports can be text-heavy and unstructured, making them time-consuming to review and difficult to understand. To speed up comprehension and drive action, identify graphics that emphasize the most critical data. Consider the following types of visualizations:
Heat maps
Charts and graphs
Infographics
Real-time dashboards
Link risks to corporate goals for maximum impact
To encourage executives to act, articulate the big picture of how legal protects the company and supports its current strategy. Invest time in creating materials that directly relate to enterprisewide goals, and explain the various available options to respond to an emerging risk. This solution-options approach — which relies on legal leaders to detect the emerging risks that warrant immediate action, identify the low-cost, low-regret actions for executives to take, and guide the executive learning journey — proves most effective.
Risk reporting FAQs
What is risk monitoring and reporting?
Risk monitoring and reporting is a process general counsel use to drive executive action on emerging risks before they escalate to real threats. Compelling risk reports are designed to educate key stakeholders about risks and encourage next steps.
Why is risk reporting important?
Effective risk reporting ensures that executives receive information pertinent to their priorities. It also helps build support to encourage risk mitigation actions before emerging risks present the potential to lead to an organizational failure.
What makes a good risk report?
A good risk report helps legal leaders coordinate across assurance functions. Consistency of risk reporting and monitoring activities, along with a comprehensive view, improves risk management by giving stakeholders visibility into a risk’s current state and a clear understanding of their risk exposure.
Attend a Conference
Join Gartner experts and your peers to accelerate growth
Gather alongside fellow leaders on September 8–9 in Grapevine, TX to gain insight on emerging trends, receive one-on-one guidance from Gartner experts and create a strategy to tackle your priorities head-on.
8 – 9 Sep 2025
Gartner Enterprise Risk, Audit & Compliance Conference
Grapevine, TX
Drive stronger performance on your mission-critical priorities.