When, if ever, should a multi-national, publicly traded company discuss its FCPA risks in the “Risk Factors” section of its 10-K, 10-Q or offering prospectus?  Is such disclosure, before there is an FCPA violation on the company’s radar, necessary or prudent?  If a company does disclose FCPA risks, what should it be telling regulators and the public about those risks in its filings?  FCPA experts are sharply divided on whether the benefits outweigh the disadvantages of such disclosure.  Guidance from the government is scarce and hard to discern.  To help shed light on this controversial but critical issue, the Anti-Corruption Report is publishing a multi-part series addressing the strategy and mechanics of disclosure of FCPA risk in the Risk Factors section of SEC filings.  This article, the first in the series, discusses the SEC rules governing such disclosure and the evolution of the disclosure of risk factors related to international operations.  It also examines both sides of the debate as to whether such disclosure is necessary and prudent.  For more on disclosing corruption investigations in SEC filings, see the Anti-Corruption Report’s Guide on that topic – Parts One, Two and Three, and the compendium of relevant disclosures in Part Four.