Given the current market situation, and the continuously changing regulatory environment, a company that intends to go or recently went public should consider the latest trends in investors’ attitudes. Apart from business and financial performance, other aspects of Sarbanes-Oxley (SOX) - such as governance, risk and compliance (GRC) approach - endorse the company’s public image and may facilitate the decision-making of potential investors.
The first challenge to overcome when complying with SOX requirements, is the transition from the informal control environment of a private entity to a standardised and well controlled environment. SOX is not just a bureaucratic requirement, but also an important tool for Management to formalise processes and establish adequate mechanisms that will enhance operational efficiency.