Under Control: Governance Across the Enterprise

9.2. Navigating the U.S. Regulatory Environment

The U.S. regulatory environment is best described as the coexistence of multiple regulatory frameworks. The objective of the U.S. regulatory framework is to achieve public policy objectives, such as the orderly operation of financial markets. For example, SOX seeks to prevent future Enrons. Regulations and regulatory agencies are frequently created in reaction to a crisis or highly publicized localized failing that points to potential future failings. For example, the 1929 market crash begot the Security and Exchange Commission.

Using the past as an indicator of the future, new regulations usually provide a blend of specific directives targeted at the known ways of failure, coupled with some vagueness ...