Sarbanes Oxley Act of 2022 (SOX)

Orion Governance Use Case

Helping Firms Be SOX Compliant

This US Federal law that came about to mandate practices in financial record keeping and reporting to protect investors at public firms by improving accuracy, transparency and reliability of corporate disclosures for off balance-sheet transactions; making board of directors, management and leveraged public accounting/audit firms to be accountable for it. The Act also has provisions applicable to private firms. It has raised investor confidence, reliability of financial statements, reporting re-statements and fraud prevention. The SEC is the enforcer of the law, with whistleblower protections, CEO/CFO certification requirements, internal/external audits, controls and annual tests for effectiveness. Other countries have since also adopted similar laws.

Firms are required to spend a significant amount of money and resources on SOX compliance, but these have continued to come down over almost 2 decades. The average costs range from $75-100K for small firms to to $2-3M for firms with revenues between $5-7Billion, with costs higher for decentralized firms.

Violation of the Act adds criminal penalties for Executives who face securities fraud, knowingly certifying financially non-compliant reports, obstruction of justice and other misconduct, with up to $1M in fines, a maximum sentence of 20-25 years prison time.

Orion Governance is Key to Sarbanes Oxley Act Compliance

Business Problem

Most firms have to have regular SOX audits and have adopted best practices to be in compliance by putting a standardized approach to data processes management and minimizing challenges by centralizing the data in an ERP or CRM or Data Warehouse etc.

The Orion Governance Solution

Orion is another tool that can be leveraged to ensure compliance and segregation of duties for a good Data Governance program to be compliant with SOX requirements.

Business Benefits with Orion Governance

By putting SOX compliant solutions in place, firms optimize their Marketing/Finance/Accounting activities and reduces audits and risks in the number of non compliant scenarios that get discovered.

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