U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Office of Global Security Risk

The global risk environment has changed dramatically over the past few years, and continues to change almost daily as we learn of new or possible threats of terrorist activity around the world. The SEC and its Division of Corporation Finance have a unique role in seeking to enhance the investing public's access to the information it needs about any public company to make an informed investment decision, including material information about global security risk.

The federal securities laws are premised on the idea that a company must disclose information that a reasonable investor would think is material, in light of the circumstances under which the disclosures are made (including the mix of information), in assessing an investment in the company. The Commission's disclosure-based regulatory approach has served the investing public and this agency well over the years, and the standard for disclosure - that of materiality - has long been the foundation of the Commission's work. We are committed to maintaining the materiality standard as the basis for our disclosure-based approach.

At the direction of Congress, we have established the Office of Global Security Risk within the Division of Corporation Finance. This office works closely with our Division review staff to monitor whether the documents public companies file with the SEC include disclosure of material information regarding global security risk-related issues. The staff of the Office of Global Security Risk is taking steps to apprise our Division review staff of significant developments in this area of which it becomes aware, and is thereby assisting the Division in maintaining high standards of review in considering these issues.


Modified: 03/02/2005