Companies and institutional investors take note: RiskMetrics Group is launching the successor to its Corporate Governance Quotient on proxy research reports, dubbed Governance Risk Indicators (GRId). Instead of scoring companies on governance relative to their industry and index as with CGQs, the new methodology will give an absolute score based on an assessment of four […]
Risk Management
Posted inRisk Management
RMG Posts FAQs on Policies and New Proxy Disclosure
RiskMetrics Group has published some guidance for companies, in the form of three frequently asked questions, about how its voting policies may apply to some of the disclosures required under the Securities and Exchange Commission’s new proxy disclosure rule. The rule adopted by the SEC in December, which includes new disclosure about risk-management oversight, “risky” […]
Posted inRegulatory Enforcement
SEC’s Schapiro Details What’s Ahead For 2010
More crisis-related cases and more rulemaking, lots of it, are on the Securities and Exchange Commission’s agenda in the months ahead, according to the agency’s chairman. Highlighting some of the recent mortgage-related, pay-to-play cases, accounting fraud, and insider-trading cases brought by the SEC, its chairman, Mary Schapiro, promised more to come. “The pipeline is full […]
Posted inRisk Management
What’s Worrying Risk Officers in Financial Sector
Last week I had the privilege again of hosting a Compliance Week editorial roundtable, this time gathering a dozen chief risk officers in the financial sector to hear their thoughts on the current challenges of risk management in their industry—which are more complicated than the risk management challenges in most other industries. As usual, we’ll […]
Posted inRisk Management
SEC Posts C&DIs on Proxy Disclosure Enhancements
Consider it a holiday gift from the Securities and Exchange Commission: The staff of the Division of Corporation Finance has posted new guidance for companies on transitioning to the recently approved proxy disclosure enhancements rule. The five new Compliance & Disclosure Interpretations posted Dec. 22 comprise the staff’s interpretations of how the rule’s effective date […]
Posted inAccounting & Auditing
PCAOB Revamps 7-Standard Package on Risk Assessment
Based on initial comments to seven proposed standards on assessing and responding to risk, the Public Company Accounting Oversight Board has reworked the package and is asking for public comment on the revisions. The board unanimously approved the revisions suggested by the staff of Chief Auditor Marty Baumann and agreed to put them out for […]
Posted inRisk Management
SEC Oks Tweaked Proxy Disclosure Enhancements for 2010
Those tasked with drafting proxy disclosures take note: The Securities and Exchange Commission has approved proposed amendments to its proxy disclosure rules, with some notable changes from the July proposing release, that you’ll have to incorporate into your 2010 proxy disclosures. The SEC, in a 4-1 vote, okayed proposed changes to the disclosures companies are […]
Posted inRisk Management
Standard Chartered Overhauls Governance
Standard Chartered, the banking group, has overhauled its boardroom structures in an effort to improve its corporate governance. The bank is going to split a board committee that covers audit and risk issues into two new bodies. A risk committee will oversee the management of the bank’s key prudential risks and will review the effectiveness […]
Posted inRisk Management
Metrics for Compliance, Metrics for Risk
Compliance Week had another one of its editorial roundtables this week, and as usual I had the privilege of leading an excellent discussion with compliance and risk executives facing some of the most formidable governance challenges out there. Our full coverage of the forum will appear in Compliance Week’s Dec. 1 newsletter, but for now […]
Posted inRisk Management
The Myth of the Black Swan
Perhaps it’s time to start shooting those black swans. For the last several months we’ve all heard more and more about risk management, primarily because a class of supposed geniuses on Wall Street ruined the economy for the rest of us. Now the buzzword in Washington is risk management, all the time. And the most […]
