ASX Principle 7 Compliance 

Managing and recognising risk under the ASX Corporate Governance Principles has become a new challenge for listed companies.

Sally Freeman

Sally Freeman

Partner in Charge, Risk Consulting

+61 3 9288 5389

The Australian Securities Exchange's Principles of Good Corporate Governance were revised in 2007.


In particular, listed entities must decide whether to comply with the important revised Principle 7 — Recognise and Manage Risk — and the consequences of this decision. Compliance is optional, but failure to comply may alienate important stakeholders.


Principle 7 requires companies to make an informed disclosure about their management of material business risks, including ‘sustainability’ risks.


How we can help
KPMG works with a range of listed entities, assisting them to achieve meaningful disclosure under the revised ASX Principle 7. Our experienced risk and governance professionals help clients to:

  • define material business risks
  • learn how to identify and analyse these risks
  • ascertain the ‘reasonable expectations’ of stakeholders
  • develop systems to manage business risks and attest to the effectiveness of this management
  • design or analyse reports from management on the management of business risks.


We also assist with drafting sign-off documents, testing control frameworks, documenting the risk and control process, developing gap analysis and action plans and designing self-assessment controls.