Risk managers can play an important role in complying with thecorporate disclosures required by the federal Sarbanes-OxleyAct--though few do today, according to a recent survey of insurancebuyers.

Indeed, firms involving risk management in the SOX complianceprocess under the Public Company Accounting Reform and InvestorProtection Act receive great benefits, according to a reportwritten by David Bradford, editor-in-chief for Advisen, a NewYork-based consulting firm that frequently works with the Risk andInsurance Management Society.

Advisen asked 6,500 risk managers to take part in an onlinesurvey during the last week of July. Of the responses, 215 camefrom publicly held companies and 87 from nonpublic firms thatcomply with the internal control rules.

Almost 73 percent of the risk managers said their departmentsare not involved with the committee or teams overseeingSarbanes-Oxley compliance. In fact, almost 74 percent do not play arole in auditing, monitoring or collecting data for compliance.

More than 50 percent of the risk managers are happy with thatsituation. Interestingly, 24 percent said implementation ofenterprise risk management was spurred by SOX compliancerequirements.

Mr. Bradford wrote that the role of the risk manager inSarbanes-Oxley compliance remains an "evolving story" as federalregulators still work to clarify requirements.

However, he said, "based on respondents' comments, risk managersof those companies that have most thoroughly integrated the riskmanagement function into the Section 404 compliance process areexperiencing material benefits."

Section 404 of Sarbanes-Oxley mandates the assessment ofinternal controls by the company. The company's auditor is requiredto attest to, and report on the assessment.