Regulatory Compliance
In 2002, after the failure of such businesses as WorldCom and Enron, the U.S. government introduced new regulations aimed at preventing companies from intentionally or unintentionally losing, masking, or altering securities-related information. The collapse of these companies made it clear that ISO/IEC standards were not sufficient to protect investors and employees. Executive officers sometimes felt they were above the rules, and security officers did not question them. It simply did not occur to these security officers that financial data would need protection from modification by a company’s executive officers!
The failure of self-regulation brought about new, widespread regulations. These regulations dictated that the ...
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