In this episode, Roy and I consider Sgt. Pepper's at 50; Artificial Intelligence in Compliance and how ComTech will change the face of compliance going forward.
For additional reading on these topics see:
Compliance Lessons from Sgt. Pepper's
In this episode Matt Kelly and I take a deep dive into the revisions to the COSO ERM Framework, which were based on comments by practitioners. We consider the role of culture and risk, the integration of the COSO ERM Framework into functional business units moving to operationalize ERM in organizations and we consider how the ERM Framework differs yet is complimentary to the COSO Internal Controls Framework.
For additional information, see Matt's Blogs posts on the COSO ERM Framework:
More Details on COSO ERM Framework
Update to COSO ERM Framework Update
ERM Framework: Govt. Calls for Unity
Today I have back with me James Koukios, partner and Morrison Foerster on the firm's March 2017 report on the Top Ten International Anti-Corruption Developments for the month. We highlight the 2nd Circuit Court of Appeals oral argument in the Hoskins case and the OCED Phase 4 reports on Finland and the UK. For a copy of the firm's report, click here.
This week, Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
Jay Rosen can be reached:
Mobile (310) 729-6746
Toll Free (866)-201-0903
Tom Fox can be reached:
Phone: 832-744-0264
Email: tfox@tfoxlaw.com
Episode 18 Show Notes
I. Compensation, Incentive and Compliance
In this episode, Roy Snell and myself discuss how incentives are integral to the compensation plans of a wide range of workers. Many experts point to their value in rewarding behavior that is in the interest of the organization and for keeping workers focused on activities that help the bottom line. At the same time, however, the incentives can pose great risks.
Many corporate scandals have shown that workers and corporate leaders may give in to the temptation to cheat to make their numbers, doing whatever they can to achieve their goals and reap the rewards. As a consequence, incentive plans may turn out to be a roadmap for compliance risk.
This danger argues for the compliance department having a role in reviewing incentive plans, if nothing else than to develop controls that ensure the numbers are hit properly, without violating policies, procedures, the law, and ethical norms.
To better assess the role of the compliance team in reviewing incentive plans, in April 2017 the Society of Corporate Compliance and Ethics and the Health Care Compliance Association fielded a survey among compliance professionals. The results indicate that, despite the risks, compliance rarely plays a role in evaluating incentive programs. For the recent SCCE/HCCA survey on this issue, click here.
For additional writings by Tom see the following blog posts:
Executives and Compliance Compensation Incentives
Sales Incentives and Compliance
II. Compliance and the Board of Directors
On a second topic, Roy and I discuss the need that a true compliance expert sit on a company’s Board of Directors. The presence of a such a compliance professional with subject matter expertise on the Board sends a strong message about the organization’s commitment to compliance, provides a valuable resource to other Board members, and helps the Board better fulfill its oversight obligations.
Almost every Board has a former Chief Financial Officer (CFO), former head of Internal Audit or persons with a similar background and often times these are also the Audit Committee members of the Board. Such a background brings a level of sophistication, training and subject matter expertise that can help all companies with their financial reporting and other finance based issues. So why is there not such compliance subject matter expertise at the Board level?
Roy sees it through the prism of the compliance profession and has said, “If you ask most companies if they have compliance expertise on their Board… most would say yes. When asked who the compliance expert is they typically point to a lawyer, auditor, risk manager, or an ethicist. None of these professions are automatically compliance experts. All lawyers have different specialties.” He goes on to state that what regulators want to see is specific compliance expertise at the Board level. He noted, “the government is looking for is not generic compliance expertise. They are looking for compliance program management expertise.
For Roy’s further thoughts on this issues, see his blog post, “Compliance Expertise Needed on Your Board”.
For Tom’s writing on the subject see his blog post, “Compliance Expertise Needed on the Board”.
In this episode Matt Kelly and I take a deep dive into the question of whether a company has a duty to disclose ransomware attacks. We consider it from the regulatory, legal, ethical, law enforcement, business, PR and some other angles. What may seem to be a straight-forward answer to a regulatory obligations turns out to be anything but.
For additional research, see Matt Kelly's blogpost, "Ransomware: To Disclose or Not".
This week, Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
In this second of a two-part series, we conclude the panel’s discussion of the first 100 days of the Trump administration as it relates to compliance. This episode concludes with the panelists’ rants.
For Matt Kelly’s posts see the following:
Compliance in the Trump Era: More Markers Placed
Trump Administration Whacks Telco Firm for $892 Million
Drone Industry Pan Trump’s Regulatory
Trump Risk Disclosures Start Rolling In
First SEC Whistleblower Award of Trump Era
Sessions Dodges, Weaves, Promises on FCPA
For Mike Volkov’s posts see the following:
Yates, AG Sessions and Individual Criminal Prosecutions
New E-Book — Moving the Goalposts: The Justice Department Redefines Effective Compliance
FCPA Remediation Focus on Supervisory Personnel
For the Cordery Compliance client alerts see the following:
EU conflicts minerals compliance legislation
DOJ Evaluation of Corporate Compliance: how does it compare to UK Bribery Act 2010?
For Jay Rosen’s posts see the following:
Still in the Enforcement Business and Evaluation of Corporate Compliance Programs
“It Was the Best of Times, It was the Worst of Times,” or “Ignorance is Strength”
For Tom Fox’s posts see the following:
The Trump Administration-Kaos is Bad for Business
The Trump Administration-Failures in Leadership and Management
The Trump Administration-Preparing for a Catastrophe
The Trump Administration-the Business Response
The members of the Everything Compliance panel include:
In this episode, I visit with Pat Harned, Chief Executive Officer of the Ethics and Compliance Initiative on the recently concluded annual conference. She discusses the speech of Attorney General Jeff Sessions and the panel of former Deputy Attorney Generals, as well as some of the other Key Note speaking session highlights. She also details some of the upcoming ECI events for 2017.
This week, Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
Jay Rosen can be reached:
Mobile (310) 729-6746
Toll Free (866)-201-0903
Tom Fox can be reached:
Phone: 832-744-0264
Email: tfox@tfoxlaw.com
This episode is the first of a two-part series of podcasts dedicated to the chaotic (at best) first 100 days of the Trump administration as it related to compliance. Today we have Jonathan Armstrong and Jay Rosen. Next week Matt Kelly and Mike Volkov.
For the Cordery Compliance client alerts see the following:
EU conflicts minerals compliance legislation
DOJ Evaluation of Corporate Compliance: how does it compare to UK Bribery Act 2010?
For Jay’s post see,
Still in the Enforcement Business and Evaluation of Corporate Compliance Programs
“It Was the Best of Times, It was the Worst of Times,” or “Ignorance is Strength”
For Matt Kelly’s posts see:
Compliance in the Trump Era: More Markers Placed
Trump Administration Whacks Telco Firm for $892 Million
Drone Industry Pan Trump’s Regulatory
Trump Risk Disclosures Start Rolling In
First SEC Whistleblower Award of Trump Era
Sessions Dodges, Weaves, Promises on FCPA
For Mike Volkov’s posts see the following:
Yates, AG Sessions and Individual Criminal Prosecutions
New E-Book — Moving the Goalposts: The Justice Department Redefines Effective Compliance
FCPA Remediation Focus on Supervisory Personnel
For Tom Fox’s posts on the Trump administration’s first 100 days see the following:
The Trump Administration-Kaos is Bad for Business
The Trump Administration-Failures in Leadership and Management
The Trump Administration-Preparing for a Catastrophe
The Trump Administration-the Business Response
The members of the Everything Compliance panel include:
Over some breakfast tacos and Mexican coffee, Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
Uganda considers a demand side response to corruption. See Tom’s article in Compliance Week. What are the rationales for anti-corruption legislation? See Tom’s post on the rationales underlying the FCPA on the FCPA Compliance Report.
In this episode, Matt Kelly and I take a deep dive into the weeds of the soon-to-be-released the House Financial Services Committee, the Financial Choice 2.0 Act. We consider some of the ideas in the legislation which Matt thinks are bad including:
1. Repeal of the Chevron deference repealed.
2. Attempts to clip the SEC rule making authority.
3. Exempting more companies which desire to go public from SOX 404(b) requirements and reporting.
4. (Matt's most particular bad idea) The exemption of more filers exempted from XBRL reporting.
We also discuss some of the potential benefits from the legislation and where it may all go in the Senate.
For more see Matt's blog post House GOP Regulatory Reform Axe, on his site Radical Compliance.
In this podcast, Marc Bohn and James Tillen from the firm of Miller & Chevalier, discuss their recent publication entitled, "Evaluating FCPA Pilot Program: Declinations on the Rise" where they review the state of Department of Justice's Foreign Corrupt Practices Act declinations after one year of the agency's enforcement Pilot Program, which sought to promote greater accountability for companies and individuals who violate the FCPA, while rewarding those who voluntarily self-disclose violations and cooperate with investigations and remediation efforts. They discuss the following issues:
For additional reading on FCPA enforcement in 2017, see Miller & Chevalier's FCPA Spring Review 2017.
In this episode, Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
In this Part I of a two part series recorded at this month's European Compliance and Ethics Institute in Prague, Roy Snell discuss the DOJ's Evaluation of Corporate Compliance Programs in the context of cavemen and Plato's Analogy of the Cave. We review some of the new information and Roy discusses how it is a compilation of many differing strands of compliance thought over the past 20 year. We then discuss the HCCA-OIG Resource Guide on Measuring Compliance Program Effectiveness. As always we go off on tangents and dive deeply into issues relating to the the compliance profession.
In this episode, Matt Kelly and I take a very deep dive into two recent speeches by Department of Justice (DOJ) Acting Principal Assistant Attorney General Trevor McFadden in which he addressed multiple topics and issues around the Foreign Corrupt Practices Act (FCPA). The first set of remarks were made in Washington DC at the Anti-Corruption, Export Controls & Sanctions (ACES) 10th Compliance Summit (the “DC speech”). The second set of remarks were made at the American Conference Institute (ACI) 19th Conference on the FCPA in New York City (the “NYC speech”). We consider the evolving rationale for FCPA enforcement which has changed in the 40 years since it was enacted, the mandatory corporate response to FCPA compliance requirements, and how McFadden sees Justice Department enforcement of the FCPA going forward in the Trump administration.
For Matt Kelly blog post on McFadden's remarks, click here. For Tom Fox's segments of a three part series, click here for Part I, Part II and Part III.
In this episode, Jay Rosen returns from a week’s trip to Walt Disney World. Jay and I have a wide-ranging discussion on some of the week’s top compliance related stories. We discuss:
In this episode I am joined by Ruth Steinholtz of AretéWork, Jonathan Armstrong of Cordery Compliance and Kristy Grant-Hart of Spark Compliance Consulting and author of How To Be a Wildly Effective Compliance Officer for a roundtable discussion of the recently concluded SCCE European Compliance and Ethics Institute. We discuss some of the highlights, the changes this group of compliance practitioners has seen and where compliance may be headed in 2017 and beyond.
In this episode Compliance Week Editor in Chief Bill Coffin discusses the upcoming Compliance Week 2017 Conference May 22-24, 2017 in Washington DC. Coffin highlights the key note speakers and some of the other key topics for the event. He discusses how Compliance Week is an entire experience for attendees, exhibitors, speakers and guests. Best of all, listeners to this podcast can receive a discount to this year's event. Go to registration and enter discount code CW17TOMFOX.
In this episode, Matt Kelly pinch hits for a Walt Disney World-vacationing Jay Rosen. Matt and I have a wide-ranging discussion on some of the week’s top FCPA and compliance related stories. We discuss:
In this episode Matt Kelly and I take a deep dive into the recently released, Public Company Accounting Oversight Board (PCAOB) semi-annual white paper. The white paper providing general information about certain characteristics of emerging growth companies (EGCs). Matt and I discuss some of the PCAOB's key findings:
Show Notes for Episode 47, for the week ending April 7, the Season Opener Edition
In this episode, Jay and I have a wide-ranging discussion on some of the week’s top FCPA and compliance related stories. We discuss:
In this episode, I visit with Adelle Berger, who recently became the Chief Integrity Officer at Louis Berger. Some of the topics we discuss are:
In this episode Matt Kelly and I take a deep dive into the recent kerfuffle involving United Airlines and its policy which prevented to teenaged girls from boarding a flight wearing leggings. Was United within its rights to exclude the passengers for inappropriate dress? Is the policy valid? Did the gate agent receive appropriate training to make their decision? In the world of today, social media accelerates the ability to judge, without improving the ability to judge. For ethics & compliance officers, that means every compliance risk is now magnified into a reputation risk. Finally, we consider Matt's closing sentence, "Training, values, culture, judgment. Funny how those four things keep cropping up, isn’t it?" and what it means for compliance.
For more insight, read Matt's blog post, "United's Policy Management Lessons"