[ISN] Credit crunch tops compliance as No.1 corporate risk, say analysts

From: InfoSec News <alerts_at_private>
Date: Tue, 23 Dec 2008 03:08:41 -0600 (CST)
http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081222/REG/812229983/1036

By John Goff
Financial Week
December 22, 2008

Oh for the good old days, when analysts would carp about how 
Sarbanes-Oxley, Regulation FD, and other regulatory burdens were 
stiffling corporate innovation. These days, the credit crisis has made 
onetime concerns about Section 404 seem almost quaint by comparison.

Indeed, a new survey of Ernst & Young analysts, who cover 11 core 
sectors, found that the credit crisis is now their top concern for the 
coming year. Regulation and compliance, the leading concern of these 
analysts last year, dropped to second place on the list.

Other risks arising from the credit crisis jumped into the top ten, as 
well. The economy was barely mentioned in the 2008 E&Y risk survey. This 
year, the souring economy came in at No. 3. In addition, business model 
obsolescence—no doubt linked to current market changes and 
volatility—placed ninth on the list. It didn’t show up on the list in 
2007.

At the same time, it appears that the E&Y analysts expect big battles to 
break out in the sectors they cover. This may not be overly surprising. 
With non-traditional competitors eyeing new sources of revenues, and 
with regulatory and technology changes, businesses are seeing new 
entrants—sometimes from different countries—invade their territory.

Concerns among analysts about ‘non-traditional entrants’ shot up from 
No. 16 on the list in 2007 to No. 5 this year.

[...]


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Received on Tue Dec 23 2008 - 01:08:41 PST

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