While key portions of the Sarbanes-Oxley Act apply only to public companies, nonpublic companies adopting SOX-related practices also are benefiting from enhanced corporate compliance strategies. Risk managers and other senior executives can achieve reduced litigation exposure, fraud deterrence, more reliable financial data and improved corporate decision-making with such standards in place.

Although the focus and substance of SOX is aimed at companies whose securities are traded publicly and registered with the U.S. Securities and Exchange Commission, SOX contains some provisions that apply to all varieties of companies, including those that are privately held.

If nonpublic companies and their risk management teams have not changed their corporate compliance strategies to take these requirements into account, adherence is a necessary first step in complying with applicable law.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.