The Reality of Geopolitical Risk Disclosure in Financial Reports: An Analytical Study of the Content of Financial Reports of a Sample of Libyan Commercial Banks

Abstract

This study aimed to analyze the reality of geopolitical risk disclosure in the financial reports of a sample of Libyan commercial banks, in light of the growing importance of this type of risk and Its implications for performance and continuity. The study adopted the descriptive-analytical approach by using content analysis of the published financial reports of four Libyan banks, namely: Jumhouria Bank, Sahara Bank, Bank of North Africa, and National Commercial Bank, over the last five years. The analysis was guided by relevant professional and regulatory frameworks issued by the IASB, ISSB, SEC, and GRI, while employing the unweighted dichotomous variable approach. The findings revealed that disclosure of geopolitical risks does exist; however, it remains incomplete, varies across banks, and tends to be more general and descriptive than quantitative and systematic, with limited disclosure of direct financial impacts, management mechanisms, and response measures. The results also indicated a gradual improvement in some banks, although without reaching the level of integrated institutional disclosure. The study recommended the development of more robust disclosure policies, strengthening the quantitative and analytical dimensions of disclosure, linking such disclosure to risk management and business continuity, and issuing a supportive regulatory framework at the level of the Libyan banking sector.