Intellectual Capital

Abstract

Information is, without a doubt, the new “capital” of business. It is not an exaggeration to state that without reliable, accurate, and up-to-date information, the organization cannot operate. However, the deliberate sharing of information exposes enterprises to the risk of intellectual property (IP) loss. To protect this and gain the most from its potential, the complexity of intellectual capital must be acknowledged and its “life cycle” managed. When the Sarbanes-Oxley Act talks of documents, records, and reports, it is really referencing the information that is placed in the public domain to enable investors to make decisions. The assumption is that the better the quality of information, the more able the investor is to make a truly informed decision. This is a critical consideration.