Your company is a direct bank that relies entirely on internet banking; its shares are public-traded. You are exercising due diligence surveying applicable laws and regulations to your company. Which of the following has a profound effect on corporate governance and holds directors and officers personally liable for the accuracy of financial statements?
Kindly be reminded that the suggested answer is for your reference only. It doesn’t matter whether you have the right or wrong answer. What really matters is your reasoning process and justifications.
My suggested answer is C. SOX.
SOX has a profound effect on corporate governance because it requires public companies to enhance disclosure, strengthen audit committees and internal controls, and hold directors and officers personally liable for the accuracy of financial statements and establish stricter criminal penalties for fraud.
HIPAA defines security and privacy rules for the healthcare and healthcare insurance industries. HITECH updates many of HIPAA’s privacy and security requirements and introduces new data breach notification requirements.
GLBA removes market barriers among banking, securities, and insurance companies and allows them to consolidate. However, it defines financial privacy rules, safeguards rules and requires pretexting protection to enforce information security.
GDPR addresses the transfer of personal data outside the European Union (EU). Controllers and processors of personal data are roles responsible for ensuring and implementing the data protection principles and measures. A mandatory role, data protection officer (DPO), is responsible for managing compliance with the GDPR.