Report Warns Against Short-term Approach to SOX
Despite enormous attention to the Sarbanes-Oxley Act itself, relatively little consideration has been paid to the role of technology in helping financial institutions meet compliance requirements, according to new research from TowerGroup. The report asserts that financial institutions should view the Act as a catalyst for long-delayed business transformation. ‘There’s a danger of Sarbanes-Oxley being over-hyped for all the wrong reasons,’ said Virginia Garcia, senior analyst in the Financial Services Strategies & IT Investments practice at TowerGroup. ‘There will be a tendency for financial institutions to focus on immediate-term IT solutions to meet compliance deadlines. However, firms should instead focus on the enormous long-term opportunities offered by these mandates.’ TowerGroup pointed out although Sarbanes-Oxley requirements on financial reporting are not necessarily new to financial services institutions, affected processes are not documented, or spread across a wide variety of IT systems and business units.