Compliance
The latest report from The Conference Board shows that over 70% of S&P 500 companies have listed AI as a major risk in public filings, compared to only 12% in 2023. Reputational risk is the most common disclosure category (38%), with cybersecurity risk accounting for 20%. Meanwhile, PwC's 2025 director survey reveals that only 35% of boards have formally integrated AI into their oversight responsibilities, indicating that governance frameworks still need improvement.
The IRS suspended most operations on Wednesday, retaining only core employees, after exhausting unused funds. The agency had used Inflation Reduction Act appropriations to operate for another week but now has to place most staff on furlough. The acting human capital officer stated that the timing of employee pay is unpredictable. Previously, the Treasury Inspector General for Tax Administration warned that staff reductions could affect refund processing during the next filing season.
California Governor Newsom signed AB 1175, providing an alternative path to CPA licensure that does not require 150 credits, with the new rule taking effect on January 1, 2027.
This week, a U.S. federal judge denied the motion by Antonio Martino, former CFO of the collapsed Silvergate Bank, to dismiss the SEC's securities fraud lawsuit. The SEC alleges that Martino misled investors about the bank's severe financial condition after FTX's bankruptcy, including approving false financial reports and making misleading statements during conference calls. The judge determined that the SEC's allegations were sufficient, and the case will proceed to trial.
During the federal government shutdown, the U.S. Securities and Exchange Commission (SEC) will largely suspend the processing of initial public offering (IPO) reviews. Although the EDGAR system still accepts new submissions, the corporation finance division will no longer review or comment on filings, retaining only a minimal number of staff to handle fee calculations and emergency filing relief issues. Lawyers note that the shutdown effectively creates an 'IPO freeze,' potentially disrupting companies' listing preparation plans that span months or even years. The recent IPO market has shown signs of recovery, such as California-based robo-advisor Wealthfront having publicly filed its listing documents, but the shutdown may impede its progress.
FASB on Monday issued scope refinement guidance for derivatives, hedging, and contract revenue accounting, aimed at clarifying the applicability boundaries of existing Topics 815 and 606. The new guidance exempts certain ESG-related financial instruments and specific research and development and litigation financing contracts. The amendment is effective for annual and interim reporting periods after December 15, 2026. This update is the Board's seventh standards amendment of the year, following the initiation of a related project in 2023 to curb "scope creep" in derivative determinations.
CyberCube reported on Thursday that the cyber insurance market can reduce catastrophe risk exposure by diversifying portfolios across geography and industry and adopting mitigation strategies to lessen the impact of major attacks. The current market is highly concentrated in the United States; combining diversification across geography, industry, revenue, and technology can reduce risk by 40%. Additionally, adopting mitigation measures such as patch management, network segmentation, and robust data backups can cut losses by nearly 60%.
Risilience's latest survey finds that about 36% of capital expenditure at major US and European companies is aligned with sustainable development goals, with 95% of companies discussing environmental risks on the board's standing agenda. Despite policy reversals at the US federal level, companies are still advancing decarbonization plans, with 52% having established net-zero roadmaps.
The U.S. Department of Homeland Security (DHS) recently proposed a rule to reform the H-1B visa lottery selection process, attempting to restore policy adjustments introduced during the first Trump administration. Under this rule, DHS would weight registrations based on the equivalent salary level that employers offer to visa beneficiaries. The rule establishes a four-tier salary ladder, placing higher-paid applications in higher tiers and giving them more chances in the lottery compared to lower-paid applications.
A survey by cybersecurity firm VikingCloud found that nearly half (48%) of cybersecurity leaders did not report "major" cybersecurity incidents to senior management or the board over the past year, mainly due to fears of punitive responses from leadership and the board (40%) and financial or reputational harm from public disclosure or regulatory consequences (44%). Experts note that companies should tailor incident response plans and cultivate a safe reporting culture.