What It Is

Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal statute enacted post-Enron scandals. It mandates corporate accountability, accurate financial disclosures, and robust internal controls over financial reporting (ICFR) for public companies. Employs a risk-based approach via top-down scoping aligned with COSO framework.

Key Components

• **Title IPCAOB creation for audit oversight, inspections, standards.
• **Title IIAuditor independence, non-audit service bans, partner rotation.
• **Sections 302/906CEO/CFO certifications with civil/criminal penalties.
• **Section 404ICFR assessment (404a), auditor attestation (404b).
• Governance (audit committees), whistleblower protections, document retention. Compliance through annual reporting, no formal certification but SEC/PCAOB enforcement.

Why Organizations Use It

Mandatory for U.S. public issuers; enhances investor trust, reduces restatements/fraud. Strategic benefits: governance maturity, operational efficiency, M&A readiness, lower capital costs despite high compliance expenses.

Implementation Overview

Top-down risk assessment, control design/documentation, testing (design/operating effectiveness), remediation, continuous monitoring. Applies to public companies/auditors; scaled for filer types (e.g., EGC exemptions). Annual ICFR reports in 10-K, auditor involvement for larger filers.

What It Is

MAS Technology Risk Management (TRM) Guidelines (January 2021) are supervisory guidelines issued by the Monetary Authority of Singapore (MAS) for financial institutions (FIs). They provide principles-based guidance on managing technology and cyber risks, emphasizing governance, controls, and resilience across the IT lifecycle. The approach is risk-based and proportional, tailored to an FI's complexity, services, and technologies.

Key Components

• 15 sections covering governance, risk frameworks, secure development, IT service management, resilience, access controls, cryptography, data security, cyber operations, assessments, and audit.
• Synthesised into 12 core principles like board accountability, asset inventory, third-party oversight, and defence-in-depth.
• No fixed controls; focuses on outcomes for CIA triad (confidentiality, integrity, availability).
• Compliance via supervisory review, not formal certification.

Why Organizations Use It

• Meets MAS supervisory expectations to avoid fines/enforcement.
• Enhances cyber resilience, operational stability, and customer trust.
• Supports digital transformation while mitigating ecosystem risks.
• Builds board oversight and measurable risk metrics.

Implementation Overview

• Phased: governance setup, asset inventory, control design, testing, monitoring.
• Applies to all MAS-supervised FIs; proportional by size/risk.
• Involves policies, training, audits; 12-24 months typical for maturity.