Thou Shalt Comply (and More), or Else: Looking at Sarbanes-Oxley
P.J. Jakovljevic - February 21, 2007

Problem Summary

Most enterprises have to compete globally, and thus adhere to largely nonnegotiable legal and regulatory requirements in almost every region or vertical sector they are targeting. Thus, regulatory compliance and the management of a multiplicity of prospective risks have lately pervaded the minds of most executives and upper managers. Indeed, no single chief executive officer (CEO) would—with a sound mind—like to be apprehended for embezzlement and placed in handcuffs in front of sensation-hungry TV cameras. Neither is any manager eager to face the severe consequences (penalties, lawsuits, brand erosion, tainted reputation, etc.) of a major product recall that is brought to the public's attention because of some extremely unlucky consumer's death or serious illness. Some such recent occurrences include the recall of a major sport utility vehicle's (SUV's) track tires; contamination due to a dangerous chemical leak, causing fatalities; and an E. coli outbreak caused by a contaminated food product. Further, no company is willing to have its imported goods kept at the ports indefinitely, let alone pay severe penalties for (knowingly or not) trading with rogue countries and blacklisted parties, or for having dangerous goods or contraband in its shipments...