Risk management disclosure starts with a discussion of the firm's policy regarding the identification and monitoring of the market and credit risks associated with its trading activities. In the same vein, the annual report should discuss the internal organisation adopted to manage those risks and identify the top to bottom levels of risk management responsibilities. The report should also mention whether the firm manages those risks separately or on an integrated basis as well as the type of market risks covered (for instance, equity, foreign exchange, interest rates and commodity risks). The report should partition by financial instruments (preferably by client versus proprietary trading activities), type of credit risks covered, concentration (across the type of assets traded), geography, industry and currency.

The report should summarise recent economic performance as well as associated major economic, political and institution specific risk factors. The average daily revenue from trading and its standard deviation should also be disclosed, compared to last year figures and analysed with respect to its origination, by asset class, currency, industry, geographical region and credit rating concentrations. Finally, the report should mention if its target trading profit objective was achieved and, if not, explain the origins of the under-performance. A profit forecast provides a good indication of the firm's risk appetite.