Many public companies face an imminent deadline to comply with new Securities and Exchange Commission (SEC) disclosure requirements regarding risk management.

Two provisions of Rule No. 33-9089; may be of specific interest to board members, senior leaders, and risk managers:

• Section A1: Narrative Disclosure of the Company's Compensation Policies and Practices as They Relate to the Company's Risk; and
  
  
• Section C: New Disclosure about Board Leadership Structure and the Board's Role in Risk.
  
  
  

Recommended Action

Marsh recommends that all organizations review their risk management policies and processes. Suggested activities include instituting or refining enterprise risk management (ERM) processes, conducting a compensation risk management assessment, and improving risk management oversight.

To learn more about this new rule, its implications, and the support that Marsh Risk Consulting's Enterprise Risk Services and Solutions Practice (ERSS) can provide, please read New SEC Risk Management Disclosure Rule Demands Immediate Compliance Actions Be Taken in its entirety.