Difference between revisions of "Tighter corporate governance standards"

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==Locked by Jose for Editing ==
==Description:==
Name: Tighter corporate governance standards
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Procedures driven to push firms to implement more robust risk management systems, like Sarbanes-Oxley Act of 2002 or BASEL II, and moving further along in the implementation of corporate governance risk management are required.Enablers: Sarbanes Oxley is driving companies to more closely define how they run their organizations.




What: With the global economic environment being heavily influenced by the Sarbanes-Oxley Act of 2002, companies must comply with much more strict rules for how corporate governance. This impacts the operation of IT systems, and particularly how companies use the Internet.
==Enablers:==


Enablers: Sarbanes Oxley is driving companies to more closely define how they run their organizations.
-2009 Global recession caused by crises and scandals like the “credit crush” and Societe Generale trade fraud that cost the Bank 5 bn Euros.
-Need for both governmental and regulatory control mechanisms to prevent cases fraudulent and greedy behaviors.
-Need for effective internal controls and segregation of decision rights.
-Auditing firms that can earn billable hours
-Provides information that helps markets to evaluate the company’s performance and management actions.


Inhibitors: Some parts of Sarbanes Oxley – such as the phrase requiring companies to immediately report to investors any material events – are vague. (Material event has not been defined).
==Inhibitors:==


Paradigms: Sarbanes Oxley is the most influential legislation since the Securities and Exchange Act of 1934, and it applies to any company that is publicly listed on a US stock exchange. It is changing the way business is done in many industries, particularly in the finance discipline.
Laws like Sarbanes-Oxley Act of 2002 impacts the operation of IT systems, and particularly how companies use the Internet. To make it worst some parts of Sarbanes Oxley – such as the phrase requiring companies to immediately report to investors any material events – are vague. (Material event has not been defined).
-Cost of mechanisms to put these regulatory laws working transparently and trustfully.
-If not carefully adapted regulations can reduce the productivity and innovation of enterprises


Experts: tax auditors, finance experts, and management consultants.
==Paradigms:==


Timing: the Act was implemented in 2002. Compliance milestones are March 2004, Q12005, Year-end 2005, and 2006.
-Reduce risk driven behaviours driven by high bonus but that business and even the total financial system in risk
- Recognition that ‘rogue-traders’ are a global phenomenon which can only be prevented by a balanced organizational architecture with strong control mechanisms and transparent and controlled decision rights.
-Laws like  Sarbanes Oxley are driving companies to more closely define how they run their organizations
-Increased debate regarding the relative merits of self-regulation versus government regulation as mechanisms to control unethical conduct.
The solution will pass by ways of building and increasing trust, based on ethics and by adopting clear and simple rules for the sector (policies and standards must be unmistakably clear). Strengthen external checks-and-balances by consumers, competition authorities, courts and parliaments.


Web resources: [http://www.sarbanes-oxley.com Sarbanes Oxley Official Site], [http://www.gartner.com Gartner], [http://www.ibm.com/iibv IBM Business Consulting Services Institute for Business Value], [http://www.deloitte.com Deloitte]
==Experts:==
 
tax auditors, finance experts, and management consultants.
 
==Timing:==
 
September 2009 Lehman Brother bankruptcy and consequence collapse of the world financial system<br>
Oxley Act Act implemented in 2002<br>
Basel II June 2004
==Web resources:==
[http://www.sarbanes-oxley.com Sarbanes Oxley Official Site], [http://www.gartner.com Gartner], [http://www.ibm.com/iibv IBM Business Consulting Services Institute for Business Value], [http://www.deloitte.com Deloitte]

Latest revision as of 20:22, 19 October 2009

Description:

Procedures driven to push firms to implement more robust risk management systems, like Sarbanes-Oxley Act of 2002 or BASEL II, and moving further along in the implementation of corporate governance risk management are required.Enablers: Sarbanes Oxley is driving companies to more closely define how they run their organizations.


Enablers:

-2009 Global recession caused by crises and scandals like the “credit crush” and Societe Generale trade fraud that cost the Bank 5 bn Euros. -Need for both governmental and regulatory control mechanisms to prevent cases fraudulent and greedy behaviors. -Need for effective internal controls and segregation of decision rights. -Auditing firms that can earn billable hours -Provides information that helps markets to evaluate the company’s performance and management actions.

Inhibitors:

Laws like Sarbanes-Oxley Act of 2002 impacts the operation of IT systems, and particularly how companies use the Internet. To make it worst some parts of Sarbanes Oxley – such as the phrase requiring companies to immediately report to investors any material events – are vague. (Material event has not been defined). -Cost of mechanisms to put these regulatory laws working transparently and trustfully. -If not carefully adapted regulations can reduce the productivity and innovation of enterprises

Paradigms:

-Reduce risk driven behaviours driven by high bonus but that business and even the total financial system in risk - Recognition that ‘rogue-traders’ are a global phenomenon which can only be prevented by a balanced organizational architecture with strong control mechanisms and transparent and controlled decision rights. -Laws like Sarbanes Oxley are driving companies to more closely define how they run their organizations -Increased debate regarding the relative merits of self-regulation versus government regulation as mechanisms to control unethical conduct. The solution will pass by ways of building and increasing trust, based on ethics and by adopting clear and simple rules for the sector (policies and standards must be unmistakably clear). Strengthen external checks-and-balances by consumers, competition authorities, courts and parliaments.

Experts:

tax auditors, finance experts, and management consultants.

Timing:

September 2009 Lehman Brother bankruptcy and consequence collapse of the world financial system
Oxley Act Act implemented in 2002
Basel II June 2004

Web resources:

Sarbanes Oxley Official Site, Gartner, IBM Business Consulting Services Institute for Business Value, Deloitte