A number of analysts believe that any financial organization that manages to comply with all the regulatory acts and standards in force today can export their infrastructure and sell it to competitors. However, experts at InfoWatch point out that without taking the peculiarities of each individual company into account such measures will have no positive effects on attempts to achieve compliance.
Complying with all the existing standards and legal acts in the modern business world is far from easy, ComputerWorld reports. Financial institutions that do manage, however, can significantly increase their profits by offering compliance services to their competitors.
Today banks are fast-tracking their efforts to comply with the Sarbanes-Oxley Act's internal control reporting requirements by the July 15, 2006, deadline. According to market experts, the infrastructure and processes that enable companies to meet such regulatory requirements can pass on their know-how and experience to other banks. At the very least, using someone else’s creation will save both time and money on trying to fulfill a similar project separately.
However, not everyone agrees with that hypothesis. Compliance with regulatory acts can be viewed as a way of improving the performance capabilities and effectiveness of an organization. Consequently, every company should try to integrate compliance projects with their own business strategy and attempt to take advantage of them. It is unlikely that a competitor’s solutions will offer the most suitable answer.
“Without a doubt, every project in the sphere of regulatory compliance is highly individual. Companies can use only the most basic approaches, products and solutions that their competitors use. If companies want to gain something from the process and turn the regulatory obligations to their advantage, they need to look for the options that suit them best taking into consideration their individuality," says Denis Zenkin, marketing director at InfoWatch.
Source: ComputerWorld
