U.S. federal law enacted in 2002 requiring public companies to maintain accurate financial records and implement internal controls to prevent financial fraud and insider trading.
SOX compliance directly impacts insider risk management through requirements for access controls, audit trails, and segregation of duties around financial systems. Section 404 mandates internal controls over financial reporting, requiring organizations to monitor and log access to financial data. Insider threats targeting financial systems can result in SOX violations, regulatory fines, and criminal prosecution. Organizations must implement comprehensive insider risk controls to maintain SOX compliance.