The SEC Division of Economic and Risk Analysis, according to Paul Greene and SEC experts, is charged with two primary functions, each of which are crucial to the commission’s ongoing regulatory and oversight responsibilities. The first function of the division is supporting the commission through economic analyses that help determine SEC rulemaking and development. The second divisional function involves economic research and analysis, data analytics and risk assessment in order to determine the greatest perceived risks in registrant reviews, litigation and examinations.
Included in some of the division’s basic functions, according to Paul Greene and SEC experts, is the analysis of the possible economic effects commission-taken rulemaking and actions. This comprehensive analytical responsibility involves a look into the potential economic impact of the current commission rules, actions taken by the SEC and the need for any future regulatory action.
Next on the list, according to Paul Greene and SEC experts, is the performance of comprehensive research as it pertains specifically to risk assessment. This function involves the identification, anticipation and evaluation of risks as they involve market fraud or other illegal or suspect activities throughout the securities market.
Last, but not least, says Paul Greene and SEC experts, is providing assistance to the SEC Division of Enforcement, providing analysis and support during enforcement processes and settlement negotiations.
The list of responsibilities charged to the staff of the Division of Economic and Risk Analysis is extensive, complex and essential to overall SEC function. Each division function ensures the SEC can carry out its mission both responsibly and effectively.