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when things start to get out of control good governance demands that you create an exception [Music] report an exception report is a report that you prepare to report upon exceptional circumstances and it serves two critical governance purposes the first is to create a physical record of what has happened and how your team has responded it creates an audit Trail and also creates transparency around your actions secondly it provides all of the information the decision makers need to make an informed decision to take the appropriate action to respond to the exceptional events its our understanding of these two purposes that dictates what were going going to put into our exception report but first and foremost we need to think about what we will do before we even start to create our exception report because something extraordinary has happened some critical event and therefore you dont want to respond by sitting behind your desk typing up a report no the first and most important thing