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Risk management: worrying about things that need to go right.(Sarbanes-Oxley Act of 2002)

Business Credit

| September 01, 2006 | Sharon, Bill | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

There has been an increased dissatisfaction with many efforts that have been initiated under the rubric of "risk management" over the past several years. One of the drivers of this dissatisfaction has been the cost of compliance with Sarbanes-Oxley legislation (according to the FEI in a survey of 217 companies with revenues in excess of $5 billion, the average cost in the first year of implantation was $4.36 million; 39 percent more than was anticipated). However, the more fundamental complaint is that for all the focus on categorization of and mitigation against issues identified as "risks," there has been very little tangible positive impact on the bottom line.

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