The financial crisis has spawned new regulations and enhanced federal enforcement efforts. The crisis, the authorization of hundreds of billions of dollars in new federal funding, and a desire to strengthen regulatory controls have combined to make scrutiny of potential fraud, waste, and abuse a mantra of the federal regulatory and law enforcement community. This Public Policy Alert focuses on important recent regulations spawned by the financial crisis, and demonstrates how these policies, heightened enforcement activities, and penalties for noncompliance escalate the need for comprehensive risk management.

Fraud and misconduct are also top of mind for many leaders for whom the greatest concern is the potential loss of public trust when market confidence is at a premium. Rigorous compliance and anti-fraud programs are marks of leading boards and management that are endeavoring to identify and address potential problems before they erupt.

Given the escalating penalties for the disclosure of inaccurate information or information that is harmful to the organization, many executives are anticipating their compliance needs and reevaluating their processes for collecting and reviewing disclosures.