Applying Management Tools to Mitigate the Risk From SOX

by Sandford Liebesman, Lawrence Liebesman and John Walz

Can your organization apply the “management tools” provided by ISO 9001 and ISO 14001 to mitigate risk? An evaluation of the requirements found in the quality management system (QMS) and environmental management system (EMS) standards shows that, if an organization pursues continual improvement of these systems in line with the requirements of ISO 9001 and/or ISO 14001 and with risk management as an objective, that pursuit will help manage risk.

In the first article in this series, the point was made that the biggest concern for Top Management in US companies today is risk. And Top Management’s greatest concerns are forms of risk other than a terrorist attack—financial risk, competitive risk and the newest risk, the Sarbanes-Oxley Act of 2002 (SOX).
According to this Act of Congress, the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of a
public company in the United States has to certify the appropriateness of each financial statement that company releases. Failure may mean civil suits or
even jail time.

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