Since the passage of federal Sarbanes-Oxley legislation several years ago, public companies have been required to meet stringent reporting requirements. With the recent turmoil in the financial markets, it's like that financial firms will increasingly be scrutinized for performance.
This change has increased attention to three key areas:
Governance — Senior executives should be running the firm in an ethical manner and setting and meeting objectives
Risk Management - Identify and manage risks that could interfere with achieving objectives
Compliance — Providing evidence of complying with regulations and senior management certifying financial reports
AMR Research recently surveyed financial management firms regarding planning spending in these areas and reported the following results.
- Nearly 2/3's of these businesses plan to increase spending in these areas in 2008
- For 1/3 of these firms, 'managing and mitigating business risk' will drive technology expenditures
Remind your accounting firm clients that now may be the best time to pitch new accounts with a great direct mail marketing campaign that demonstrates their expertise in preparing financial reports. And let your technology clients know that spending for hardware and software for risk management and governance objectives will be up in 2008.
"Governance, risk management and compliance and what it means to you." Network World, 5.7.2007
Pessin, Jaime. "Companies Plan to Raise Compliance Expenditures," Wall Street Journal, 4.2.2008