Question

In the 2017 Annual Report, on page 10, ANZ’s Directors highlighted that they care about integrity and accountability. On page 35, they described the reputation risk facing by the business and how the business manages this risk. Given the impact on the share price of ANZ following the scandals identified by the banking roy al commission during 2018, discuss whether you believe ANZ’s 2017 annual report adequately or properly represents the reputation risk that ANZ is facing and whether the firm has been acting with integrity and accountability. In your response critically identify some of the key findings from the royal commission and evaluate the extent to which the firm has been successful in managing its reputation risk

Answer 1

Annual Reports gives position of company in comparison to previous years and also explain the future goals of the company. Annual Reports carry facts and figures about the overall performances, applicable control structure and effectiveness of such controls. Area of integrity and accountability highlight the responsibilities of the board towards their shareholders. Board works on behalf of Shareholders and they are accountable for their each and every act. Board appointed by shareholders so that company can work in favor of all the shareholders equally.

As in current scenario where financial figures are forged to give true and fair view on financial statements. All business carry risk with it and explaining the same in annual report act like alarm to shareholders so that they can invest only after ascertaining the level of risk of company.

In the given case where ANZ have issued their Annual Report with reporting on integrity and accountability along with talking about risk taking areas in the company and the issues faced by them. As scandals have been identified by the bank royal commission in 2018 but that cannot create the integrity and accountability as reported in Annual Report of 2017. As ANZ already informed about the business risk and they have cleared there point on steps they are taking.

Although as scandals have been identified in 2018 it can be claimed that there must be lack in risk managing abilities in the company board which leads to scandals in 2018. Even if the board has identified the business risk they should have tackled it in a better manner.

As banking royal commission is successful in identifying the scandals this will lead to lack at the end of board in managing the risk they have already identified in 2017.