More Change is on the Way

More change regarding how U.S. public companies disclose details about their risk management programs is on the way. The Wall Street Journal recently reported that the Securities and Exchange Commission is re-evaluating disclosure requirements on the heels of financial regulatory reform. Here is what they had to say.

The Securities and Exchange Commission will act quickly to revise corporate risk disclosure requirements and also consider more sweeping recommendations on executive compensation disclosures and easy-to-read corporate filings, SEC Chairman Mary Schapiro said Friday. The SEC also is looking at trading activities such as hedging, shorting, arbitrage and certain types of market orders, to ensure that all investors have access to a highly complex and technologically sophisticated trading market, Ms. Schapiro said in the text of prepared remarks.

SEC staffers now are re-evaluating all corporate filing forms and disclosure requirements, asking whether the information that is being sought is “still relevant,” Ms. Schapiro said. “After this review, I expect the staff will present individual recommendations that we can act on quickly, such as revising the risk disclosure requirements,” Ms. Schapiro said in the text of her speech to the Society of Corporate Secretaries and Governance Professionals.

Companies should be prepared to provide more substantive information regarding their risk programs. Wheelhouse Advisors can help your company with a complimentary risk program diagnostic review. For more information, email us at


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