Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gingrich: Repeal SOX

The Republicans may have fallen short in the elections this week, but that didn't stop conservative Newt Gingrich from making news: The erstwhile antiregulator is now calling for the repeal of the Sarbanes-Oxley Act.

The Republicans may have fallen short in the elections this week, but that didn't stop conservative Newt Gingrich from making news: The erstwhile antiregulator is now calling for the repeal of the Sarbanes-Oxley Act.Gingrich's rationale seems cogent. With the downturn in the economy, he reasons, the cost of SOX compliance has become too high, essentially levying an unseen "tax" on companies that are publicly traded or thinking about an IPO. Recent studies would seem to bear out Gingrich's thinking, indicating that the cost of compliance is going up, not down.

I would argue, however, that Gingrich's argument focuses too heavily on the "cost" side of the equation and not enough on the benefit side. Yes, compliance is expensive, and from a security pro's perspective, it's a royal pain in the ass. But for the past several years, it has also been a boon, both to the security department and to the IT security industry as a whole.

SOX, and other compliance efforts like it, has done something that has never been done before: It forced upper management to pay attention to security. No matter how good your business case, there's nothing like a legal requirement to motivate the top brass to fund security initiatives. For several years now, SOX has been a primary driver behind security spending, and it has clearly made an impact on security initiatives in most large companies.

Now, don't get me wrong. If we've learned nothing else in the past few years, it's that compliance does not equal security. A lot of compliance dollars are misspent, and, quite honestly, some are a complete waste of money. The vagueness of compliance requirements and the whims of auditors and consultants have done a good deal to widen that rathole.

But smart enterprises have used the additional dollars -- and the attention of top management -- as a lever to expand their security efforts and shore up vulnerabilities that they might never have been able to address without SOX. By itself, compliance may not be worth its cost. But as a motivator to expand security efforts, it has been invaluable.

Of course, the security benefits are only part of the equation. Compliance also has caused many enteprises to rethink their approach to auditing, risk management, and IT governance. It has forced them to look at the question of what might happen in their organizations. And, of course, it quite likely has done what it set out to do -- discouraged insiders from cooking the book a la Enron and Worldcom.

I don't think there's any company that likes compliance or doesn't see it as a burden. But while it might relieve some short-term costs, a complete repeal of SOX could, in Gingrich's words, do more harm than good. Before regulators consider his proposal, they would do well to look at the benefit side of the equation, as well as the cost. Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Data Leak Week: Billions of Sensitive Files Exposed Online
Kelly Jackson Higgins, Executive Editor at Dark Reading,  12/10/2019
Lessons from the NSA: Know Your Assets
Robert Lemos, Contributing Writer,  12/12/2019
4 Tips to Run Fast in the Face of Digital Transformation
Shane Buckley, President & Chief Operating Officer, Gigamon,  12/9/2019
Register for Dark Reading Newsletters
White Papers
Current Issue
The Year in Security: 2019
This Tech Digest provides a wrap up and overview of the year's top cybersecurity news stories. It was a year of new twists on old threats, with fears of another WannaCry-type worm and of a possible botnet army of Wi-Fi routers. But 2019 also underscored the risk of firmware and trusted security tools harboring dangerous holes that cybercriminals and nation-state hackers could readily abuse. Read more.
Flash Poll
Rethinking Enterprise Data Defense
Rethinking Enterprise Data Defense
Frustrated with recurring intrusions and breaches, cybersecurity professionals are questioning some of the industrys conventional wisdom. Heres a look at what theyre thinking about.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
PUBLISHED: 2019-12-15
In the Linux kernel before 5.3.11, sound/core/timer.c has a use-after-free caused by erroneous code refactoring, aka CID-e7af6307a8a5. This is related to snd_timer_open and snd_timer_close_locked. The timeri variable was originally intended to be for a newly created timer instance, but was used for ...
PUBLISHED: 2019-12-15
python-requests-Kerberos through 0.5 does not handle mutual authentication
PUBLISHED: 2019-12-15
CFME (CloudForms Management Engine) 5: RHN account information is logged to top_output.log during registration
PUBLISHED: 2019-12-15
jersey: XXE via parameter entities not disabled by the jersey SAX parser
PUBLISHED: 2019-12-15
JBoss KeyCloak: Open redirect vulnerability via failure to validate the redirect URL.