ACCA Strategic Business Leader (SBL) Practice Exam

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What are the benefits of integrated thinking and reporting?

  1. Improved short-term financial performance only.

  2. Greater focus on individual departmental goals.

  3. Holistic view, enhanced stakeholder communication, and effective risk management.

  4. Increased regulation and standardization of procedures.

The correct answer is: Holistic view, enhanced stakeholder communication, and effective risk management.

Integrated thinking and reporting provide a holistic view of an organization's performance by incorporating financial and non-financial information into a single report. This approach enhances stakeholder communication because it allows stakeholders to see how various factors—such as environmental, social, and governance issues—impact the organization as a whole. By presenting a comprehensive view of the company's strategy, governance, performance, and prospects, integrated reporting can foster better understanding and engagement among stakeholders, including investors, customers, and employees. In addition to communication benefits, integrated thinking enhances effective risk management. By considering a range of factors and their interconnections, organizations can identify risks and opportunities more comprehensively. This leads to more informed decision-making, which can improve overall resilience and long-term sustainability. The other options do not capture the full scope of benefits associated with integrated thinking and reporting. Focusing solely on short-term financial performance disregards the broader implications and strategic considerations that are vital for long-term success. A greater emphasis on individual departmental goals could lead to disjointed efforts and siloed thinking, which runs counter to the objectives of integrated reporting. Lastly, increased regulation and standardization often emerge as a consequence of integrated reporting rather than as a direct benefit, which detracts from the intended advantages of improved communication and risk

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