SCALABILITY AND ANTIFRAGILITY OF THE REPORTING SYSTEM AS A KEY TO ORGANIZATIONAL SUSTAINABILITY

Abstract

The article examines the regulatory requirements that cannot be ignored, and subsequent mitigation measures organisations could take. The regulatory requirements regarding the reporting that organisations must follow have recently increased significantly - in addition to the already familiar and widely used financial statements and financial reporting (in particular, International Financial Reporting Standards (IFRS) or financial reporting standards based on similar conceptual reporting frameworks (US GAAP), such concepts as sustainability reporting and integrated reporting have been introduced. The challenge is that even an incorrect interpretation or incomplete compliance with regulatory requirements may lead to negative consequences for organisations, which may be multilayered - from direct monetary sanctions in the form of fines to reputational consequences, which in some cases may even result in threats to the business continuity (going concern). Global challenges for society impose new, rather stringent requirements on specific organisations. The practice shows that significant identified cases of regulation breaches or fraud lead to a straightforward response from national regulators, professional communities, and foundations. Such reactions are often expressed in creating and implementing new, usually quite strict and rigid rules and requirements related to reporting and the functioning of corporate governance and reporting systems. Based on the discussion above, it is clear that the environment in which organisations operate has a corresponding impact on the policies and procedures that should be applied in reporting. If an organisation operates on a multinational or global basis, it faces the challenge of considering detailed rules and broad principles. In order to minimise the impact of cultural sensitivities on an internal reporting system, organisations need to consider cultural differences when designing and implementing such a system. A critical issue for organisations is how quickly and efficiently they can adapt their internal processes and data management systems to new or enhanced rules and regulations. The complexity of the issue often lies in the fact that the world is moving towards total digitalisation, and a critical issue is how the system of processing and managing data, which is the basis for obtaining proper information, is built. Developing a scalable system is often the key to responding adequately to changes in the regulatory environment. An essential aspect of any system is its ability to withstand challenges, which is reflected in its robustness and reliability. Based on this, the author believes that for organisations that have identified compliance with the concept of sustainable development as one of their key goals, the necessity to build an integrated reporting system that considers the top-level concept of "antifragility" can be identified.