Dodd-Frank to bring major changes to IT organizations

 As the Dodd-Frank Wall Street Reform and Consumer Protection Act enters its second year of implementation, the pressure to comply is expected to grow exponentially for IT organizations in every sector. According to International law firm Davis Polk, complying will not be easy: the law firm estimates that the Dodd-Frank will require 243 rulemakings, 67 one-time reports / studies, and 22 new periodic reports.

The impact to IT organizations in the financial sector will be particularly great, according to Wall Street & Technology. However, firms do not expect to increase their staff to meet compliance needs. Marty Leamy, president of the Americas at Orc Software, a provider of technology and services for the global financial industry, commented that, "for the most part, firms are trying to meet compliance demands with the same amount of people."

Unfortunately, WS&T reports that "IT executives, meanwhile, should not expect that a single expertise or piece of technology or off-the-shelf software will help their firms meet compliance demands …. [since the Act] requires extensive reporting to improve transparency across many business units, compliance will be achieved only with a combination of data management, risk analytics and data rationalization." Each firm will have to find the best combination to suit their own needs.