Berkshire Hathaway Inc BRK BRK Reportedly agreed to better disclose how its board of directors manages risk, including risks taken by the chairman Warren Buffett after Securities and Exchange Commission asked the company to do a better job.

What happened: In a letter released Tuesday, the regulator’s corporate finance division asked Berkshire to “improve” its risk management disclosures in its annual proxy filings. reported Reuters. Subsequently, Berkshire agreed to make the desired changes.

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The SEC requested additional disclosures about how the company’s board of directors manages short- and long-term risks and how the board communicates with management and outside experts to identify future risks. It also called for more disclosures about why the board oversees risk management rather than delegating it to a committee, the Reuters report said.

The SEC also asked the company to respond as to whether its senior independent director can override Buffett on risk matters or ask the board to consider them. The regulator made those requests in a letter dated September 2, 2022 to Berkshire’s chief financial officer Markus Hamburg agreed with them six days later, the report said.

Why It Matters: Some analysts have long asked that Berkshire disclose more about itself. Though the company owns dozens of businesses, many are discussed in just a few sentences or paragraphs in its annual reports, according to the Reuters report.

Berkshire does not conduct analyst interviews and communicates with the public primarily through financial disclosures, annual meetings and Buffett’s annual letter to shareholdersadded the report.

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