Only Innovation Keeps Risk Under Control
Innovation is the only thing standing between a successful business and failure. Investors, of course, are looking for successful companies to in which to invest. They accept risk as part of the bargain. The return they receive on their investment is the premium they get for taking that risk.
People who invest in stocks are looking to maximize their return while controlling their risk. Sarbanes-Oxley was supposed to help investors control their risk, but things have gone off-the-rails. Such a large portion of US corporate resources, money and personnel, are now devoted to meeting the highest standards auditors can devise that innovation is suffering.
It isn’t just the money and time that are devoted to SOX it’s the attitude that in generates within an organization which stifles innovative thought. Sarbanes-Oxley is doing the exact opposite which it was intended to do, reduce risk for investors. Without an ability to innovate and accept risk companies die. Their investors loose their investments, the ultimate risk.
Time to repeal Sarbanes-Oxley. It’s too risky to keep.
I agree that innovation can help keep risk under control. However I do not necessarily agree that innovation is the only thing between a successful business and failure. One can be innovative, but if there is no sound business plan behind it or there is no real market demand for that innovation or the market does not understand the value of that innovation, then it is pretty darn difficult to succeed.