Sarbanes-Oxley: A Cross-Industry Email Compliance Challenge

Is your enterprise following the rules?* Monitoring and alerting
The bulk of financial information in many companies is* Pre-planning coordinated incident response
created, stored and transmitted electronically,* Forensics
maintained by IT and controlled via information integrityThese components enable information integrity and
procedures and practices. For these reasons,data retention, while enabling IT audits and business
compliance with federal requirements such as thecontinuity.
Sarbanes-Oxley Act (SOX) is heavily dependent on IT.In order to comply with Sarbanes-Oxley, companies
Companies that must comply with SOX are U.S. publicmust be able to show conclusively that:
companies, foreign filers in U.S. markets and privately* They have reviewed quarterly and annual financial
held companies with public debt. Ultimately, thereports;
corporate CEO and CFO are accountable for SOX* The information is complete and accurate;
compliance, and they will depend on company finance* Effective disclosure controls and procedures are in
operations and IT to provide critical support when asplace and maintained to ensure that material
they report on the effectiveness of internal controlinformation about the company is made known to
over financial reporting.them.
Sound practices include corporate-wide informationSarbanes-Oxley Section 404
security policies and enforced implementation of thoseSection 404 regulates enforcement of internal controls,
policies for employees at all levels. Information securityrequiring management to show that it has established
policies should govern network security, accessan effective internal control structure and procedures
controls, authentication, encryption, logging, monitoringfor accurate and complete financial reporting. In
and alerting, pre-planned coordinated incident response,addition, the company must produce documented
and forensics. These components allow for informationevidence of an annual assessment of the internal
integrity and data retention, while enabling IT audits andcontrol structure's effectiveness, validated by a
business continuity.registered public accounting firm. By instituting effective
Complying with Sarbanes-Oxleyemail controls, organizations are not only ensuring
The changes required to ensure SOX compliancecompliance with Sarbanes-Oxley Section 404; they
reach across nearly all areas of a corporation. In fact,are also taking a giant step in the right direction with
Gartner Research went so far as to call the Act "theregards to overall email security.
most sweeping legislation to affect publicly tradedEffective Email Controls
companies since the reforms during the GreatEmail has evolved into a business-critical application
Depression." Since the bulk of information in mostunlike any other. Unfortunately, it is also one of the
companies is created, stored, transmitted andmost exposed areas of a technology infrastructure.
maintained electronically, one could logically concludeEnterprises must install a solution that actively enforces
that IT shoulders the lion's share of the responsibility forpolicy, stops offending mail both inbound and outbound
SOX compliance. Enterprise IT departments areand halts threats before internal controls are
responsible for ensuring that corporate-widecompromised, as opposed to passively noting
information security policies are in place for employeesviolations as they occur.
at all levels. Information security policies should govern:An effective email security solution must address all
* Network securityaspects of controlling access to electronically stored
* Access controlscompany financial information. This includes access
* Authenticationduring transport as well as access to static information
* Encryptionresident at the company or on a remote site or
* Loggingmachine.