Question

What are the ERM requirements in the U.S.?

What are the regulator rules in the US?

What are the sock exchange rules in the US?

Give a well detailed response.

Answer 1

Before explaining the requirements I would like explain the concept of ERM so that it will be easy for you to understand the requirements of ERM.

1) What Is Enterprise Risk Management (ERM)?

Enterprise risk management (ERM) is a plan-based business strategy that aims to identify, as asess, and prepare for any dangers, hazards, and other potentials for disaster—both physical and figurative—that may interfere with an organization's operations and objectives.The discipline not only calls for corporations to identify all the risks they face and to decide which risks to manage actively, but it also involves making that plan of action available to all stakeholders, shareholders and potential investors, as part of their annual reports. Industries as varied as aviation, construction, public health, international development, energy, finance, and insurance all utilize ERM.

Now I would like to tell you about 3 basic requirements for ERM

• Operations – It is most important so that risk can be managed by effectiveness and efficiency of operations
• Reporting –Reliability of reporting for internal and external use must be go hand in hand for minimising the risk .
• Compliance –last but not least Compliance with applicable laws and regulations must be followed .
• Part 2) Regulator rules in U.S Regulatory policy is formulated by governments to impose controls and restrictions on certain specific activities or behavior. Regulation is not only about rules of governing but also a concept in governance. ... Both state and non-state actors have been engaged in the control of social and economic practices. US regulator rules fall into three basic categories:
• Regulating business: The national government began regulating business in the late 1800s in order to eliminate monopolies, businesses or groups that have exclusive control of an industry. Government now regulates a wide array of business practices, including the elimination of competition and fraudulent product offerings.
• Regulating labor: Most labor policies have come about to protect the American worker. The government has promoted equal employment opportunities, safe and sanitary workplace standards, and fair bargaining practices between employer and workers.
• Regulating the environment and energy.: Environmental policy is the responsibility of many different government departments and agencies. Especially important is the Environmental Protection Agency, which enforces policies on water and air pollution, pesticides, radiation, and waste disposal. Energy policies, on the other hand, are coordinated by the Department of Energy, created in the late 1970s in the wake of worldwide oil and gas shortages. Part 3) Stock exchange rules in US
• Securities Act of 1933: Prohibits fraud in the sale of securities and requires proper disclosure of information about public securities to investor.
• SecuritiesExchange Act of 1934: Extends the Securities Act of 1933 to include securities traded on exchanges and over-the-countermarkets.
• Investment Advisor Act of 1940: Requires that investment advisors and investment advising firms register with the SEC and adhere to its standards. I hope these topics will give you clear explanation of your querry. ?