Emerging Practices for Capital Adequacy © Copyright 2003, CCRO. All rights reserved. 9 Figure 5: Restoring Capital Adequacy 1.4.3 Promoting Transparency in the Industry The capital adequacy framework may help promote transparency throughout the industry as management’s use of the principles of this framework allows for a more complete assessment of the business and financial risks the company faces. It provides more insight into factors that drive uncertainties and their influence on short- and long-term financial results, which may be communicated with stakeholders. Competitors of any size that understand the uncertainties they face can provide clear insights into their true economic capital requirements. Ultimately, regardless of size of the company, this framework is a mechanism to provide many stakeholders with improved transparency into risk factors, risk management capability, and capital adequacy levels.