Published: 26 July 2013
Over the past decade, the pressure has been building on non-financial, multinational corporations (MNCs) to meet higher standards for financial reporting and risk management. To get there, MNCs are required to have an enterprise-wide view of all of their risk exposure. In the U.S., MNCs began feeling the pressure as the new requirements of the Sarbanes-Oxley (SOX) act came into effect in 2002. Five years later, the world was drawn into the Great Recession of 2007-08 that led the U.S. to adopt the Dodd-Frank Act in 2010 and its many regulations and guidelines. The new regulatory regime will compel MNCs to not only move to a more substantial enterprisewide risk management (ERM) strategy but to be more transparent about their risk mitigation.