Legislation might create a negative impact on risk management

According to banking security expert Michael Colao, director of Information Management at Dresdner Kleinwort Wasserstein, recent legislation is having a negative effect on risk management, as companies struggle to deal with increased governance. Information technology mangers are being tied up in red tape by the requirements of data protection, Sarbanes-Oxley, Basel II and other corporate governance reforms. Mr. Colao says some chief information officers are relying on complicated processes rather than sound judgment in order to protect themselves from measures that make IT managers legally responsible for adherence to corporate governance rules. Tim Pickard, strategic marketing director at RSA Security EMEA, added that the nature of EU directives makes it nearly impossible for global CIO’s to be fully compliant. The Register.