A Literature Review with Relevant Measurement Approaches to Risk Reporting in Pandemic Situations

Abstract

The purpose of this study is to analyze the relevance of the financial reporting risks of companies going public during the pandemic. This methodology is carried out with a brief review of several previous studies, so that it can be concluded concisely and in detail without conducting data testing. The results of many studies show that the Corona Virus Disease Pandemic 2019 has changed the company's operational cycle, including reporting risks. This pandemic situation has forced the company to change its business plans and implementation. In a short time, the company can lose its income due to limited business activities. This condition is aggravated by the absence of anticipation of protection of the company's financial condition. Companies that have a high risk during the pandemic will be prodromal. In relation to reporting risks, establishing a good and comprehensive context in risk management will help recognize risks in the first stage, namely crisis/ prodromal symptoms. The right steps at this prodromal stage will be very decisive when the risk is already at an advanced stage. In addition, the establishment of a contingency plan at the risk mitigation stage can also help overcome the risks that actually occur. The formulation of a good contingency plan will be useful to reduce the impact of these risks. Reporting risks triggered by the strong impact of the pandemic will be addressed by conducting appropriate risk management. Proper risk management and supported by thorough planning, can anticipate unexpected risks, and also minimize the impact if risks really occur.