What question did this study set out to answer?

To provide materials for teaching Item 1A risk disclosures and their analysis in the classroom.

May 6, 2026

Bringing Research into the Classroom: Risk Factor Disclosures and Text Analysis Applications

Key Points

To provide materials for teaching Item 1A risk disclosures and their analysis in the classroom.
Developed turnkey classroom materials for risk disclosure education
Introduced assignments for students to read and interpret risk disclosures on EDGAR
Facilitated text analysis usage via software, including Python
Tailored materials for various accounting courses
Enhanced student engagement with risk disclosures
Improved understanding of the relationship between audit committee characteristics and risk disclosures
Facilitated practical experience in risk management and data analytics

Abstract

ABSTRACT Mandatory disclosures related to company risk provide investors with valuable information. However, textbooks lack detailed coverage of risk disclosure requirements. This Learning Strategy provides instructors with turnkey classroom materials to introduce students to Item 1A risk disclosure requirements and to discuss academic research on risk disclosures. In an optional assignment, students practice (1) accessing filings on EDGAR and reading and interpreting risk disclosures, (2) using software to conduct text analysis on risk disclosures (any software can be used; the example implementation is presented using Python), and (3) evaluating how audit committee characteristics are related to risk disclosures. The materials can be tailored for undergraduate or graduate-level accounting information systems and auditing courses that discuss business risk or risk management; financial accounting and analysis courses that discuss financial statements and disclosures; and stand-alone data analytics courses. JEL Classifications: M4; M40; M41; M49.

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