New SEC Rules Require Enhanced Risk Management Disclosure

This week, the U.S. Securities and Exchange Commission (“SEC”) issued new disclosure rules that will have a significant impact on corporate governance and risk management practices at all U.S. public companies.  The rules become effective February 28, 2010 and require enhanced public disclosure of the following:

  • The relationship of a company’s compensation policies and practices to risk management.
  • The background and qualifications of directors and nominees.
  • Legal actions involving a company’s executive officers, directors and nominees.
  • The consideration of diversity in the process by which candidates for director are considered for nomination.
  • Board leadership structure and the board’s role in risk oversight.
  • Stock and option awards to company executives and directors.
  • Potential conflicts of interests of compensation consultants.

For some companies, these new rules will have minimal impact based on their enhanced risk management practices.  However, for others, it may mean a great deal of work must be completed in the next several months.  If your company needs assistance implementing cost-effective, practical risk management solutions, email us at or visit to learn more.


About Wheelhouse Advisors
Wheelhouse Advisors LLC is the publisher of The ERM Current™, an online publication and blog dedicated to providing the latest updates on current trends in Enterprise Risk Management & Control. Wheelhouse Advisors provides cost-effective Enterprise Risk Management & Control solutions to both large and mid-size corporations. To learn more about Wheelhouse Advisors, please visit our web site at

4 Responses to New SEC Rules Require Enhanced Risk Management Disclosure

  1. Pingback: New SEC Rules Require Enhanced Risk Management Disclosure « The … | Management Business Wisdom

  2. There’s good info here. I did a search on the topic and found most people will agree with your blog. Keep up the good work mate!

    Robert Shumake Paul Nicoletti

  3. MrBarns says:

    Hey, I read a lot of blogs on a daily basis and for the most part, people lack substance but, I just wanted to make a quick comment to say GREAT blog!…..I”ll be checking in on a regularly now….Keep up the good work! 🙂

  4. BillyFox says:

    Thanks for the info. Very good post!

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