discussion business Response

Week 3 – Ivan BolanoI do believe that not only does regulatory compliance impact businesscontinuity, but in many industries, it dictates what steps can actuallyexist for business continuity and ensures that companies have theproper plans in place in case of a disaster. An example of this is thefamous Sarbanes-Oxley act of 2002. “Originally designed to helpavoid the irregular accounting situations made famous by companieslike Enron, SOX was passed in 2002 to outline strict guidelines forfinancial reporting and disclosure for all public companies in theUnited States.” (Talon, 2006) While the act is a platform and providesregulations for accounting principles it also inadvertently creates abusiness continuity needs within corporations as the act does notallow leeway for reporting of finances in case of a disaster scenario.This forces organizations to establish and outline a business continuityplan that can control and prevent accounting errors during disasterscenarios, preventing business continuity plans from focusing solelyon the operation aspects but to consider the importance of theaccounting aspects.