A New Risk Factor in Corporate Disclosures: Active Shooters

David Martin is quoted in The Wall Street Journal regarding gun violence’s effect on corporate disclosures. Mr. Martin says, “People are legitimately trying to think through whether it’s responsible to put a risk factor like this in the document.” Deciding what to disclose, and which risks count as material, is more art than science. Figuring out whether a shooting is material may depend on whether a company operates spaces that are open to the public, among other factors, he adds. Large companies often vet their risk factors through internal committees, enabling multiple senior executives to weigh in, before disclosing.