Managing the risk of outsourcing arrangements requires diligence; the new regulatory environment demands it
Risk management is one of the main cornerstones of good corporate governance. Proposed changes to regulatory requirements for Canadian public companies have been developed over the past few years to create a stronger basis for managing potential risk areas. Putting these changes into action will require a consideration of every aspect of a business’s operations, and outsourcing arrangements can’t be overlooked.
New rules in play
Canadian companies listed on U.S. stock exchanges are subject to the Sarbanes-Oxley Act of 2002 (SOX) Section 404, which has required these companies to document and certify their internal controls. Companies listed in Canada have been waiting for the Canadian equivalent of SOX to be implemented.
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