@Risk

The U.S. Securities and Exchange Commission has adopted amendments to its rules that will require enhanced risk management disclosure at all U.S. public companies.

These requirements become effective February 28, 2010 and will require registrants to make new or revised disclosures about:

• 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.

The new rules will also require quicker reporting of shareholder voting results.

Each of these new requirements is discussed in detail in this 129-page document from the SEC.

“We believe that providing a more transparent view of these key risk, governance and compensation matters will help shareholders make more informed voting and investment decisions,” the SEC says in the document.

If you would prefer a summary view of the new SEC rules, see this press release.