Which principle relates to governance and risk reporting?

The correct choice highlights the importance of transparency and accountability in governance, particularly as it pertains to risk reporting. Principle 10 specifically addresses the necessity for effective governance structures in organizations, emphasizing that firms should have robust systems in place to ensure accurate and timely reporting of risks. This is essential for stakeholders, including management, investors, and regulators, as it fosters informed decision-making and enhances the understanding of an organization's risk exposure.

By prioritizing risk reporting within governance frameworks, organizations can properly assess and mitigate potential risks, aligning with best practices in the industry. This principle underlines that a business must not only identify risks but also communicate them effectively to maintain operational integrity and stakeholder trust.