Jay has returned from an Alaskan Disney cruise with the family. As OSU suspends its head coach and added a new phrase to our compliance and ethics lexicon significant memory issues; Tom and Jay are back with a look at some of the week’s top compliance and ethics stories.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly and I take a very deep dive the implications from President Trump’s tweet on Friday, August 17th about quarterly financial reporting by public companies.
Some of the highlights from this podcast are:
We unpack of all these points and consider the SEC’s response going forward.
For more reading: see Wall Street Journal Article, “The End of Quarterly Reporting? Not Much to Cheer About”.
See NYT Dealbook article, “Trump Asks S.E.C. to Study Quarterly Earnings Requirements for Public Firms”.
Jay is on an Alaskan Disney cruise with the family. Through the prism of Trump’s attacks on the US free press and their robust response, Tom takes a solo look at some of the top compliance stories from the past week. Jay returns next week.
To celebrate the Month of 1000 podcasts I am running for each of my podcasts this month, in this episode, the Everything Compliance gang focuses on the past five years; giving a retrospective of where we were, where we are and where we are going from their own perspectives. After the commentary we follow with rants and shout outs.
The members of the Everything Compliance panelist are:
The host and producer (and sometime panelist) of Everything Compliance is Tom Fox the Compliance Evangelist.
Over the next five podcasts, Matt Kelly and I will be exploring the future of internal audit, compliance and analytics. In Part I, we introduce the topic, explaining why internal audit (IA) is in the midst of a profound transformation, how this transformation will enable to move past its traditional detect function into a more proactive prevent role and how all of these transformations will lead to a more robust, operationalized risk management process.
Kelly believes IA is in midst of profound transformation. He explained IA itself is getting better and better technology. It has much more data analytics capability, so they can do a lot more with the data and do it faster but, at the same time, all the other departments in an organization, whether it's marketing, legal, compliance or operations, are receiving that same advance in technology too. This means other departments that IA is supposed to keep an eye on is also advancing with their technology too. Subsequently, their ability to throw off new data that can be analyzed is increasing exponentially at the same time. Kelly termed this as the “datafication” of the business process.
This is coupled with Boards of Directors wanting more bang for their buck out of the IA budget. This translates into the questions of how does IA add strategic value? The answer is a bit of a delicate thing because as IA works for the Board of Directors, it is supposed to be an independent and objective reviewer of business processes and of risks to the business. One of its functions is to recommend ways to reduce risks to acceptable levels. However, with this datafication it becomes much easier for IA to become much more of an analysis function to do more risk monitoring.
The tech revolution is creating more ability to move beyond traditional audit duties of Sarbanes-Oxley (SOX) compliance, such as the confines of just reviewing financial statements and specific processes at fixed increments every few years. Does this mean that IA can move from a detect function to a more proactive prescriptive function? Kelly believes, “The question is to what degree should it, because there are always going to be these questions about how Internal Audit functions maintain their independence.”
Interestingly, Kelly believes that while the Boards of Directors are directly driving this change, the ultimate pressure is coming from a wide variety of players, including shareholders, regulators, consumers and other stakeholders. All these groups want to see the Board do a better job of managing strategic risk and not be caught with its collective jaw hanging off the floor when a scandal hits an organization. This pressure on Boards of Directors is driving them to ask for more and somewhat different approaches by IA. Kelly believes IA is being pushed beyond its traditional boundaries to “help Boards fulfill a new mission” to help more in the overall risk management process.
This process is also helped by the maturation of the IA function in its control design and testing requirements deriving from SOX. Technology has helped it move away from simple spreadsheets to more sophisticated reporting tools. Now IA has the ability to better interpret the information coming out from these controls. This will allow a greater operationalization of risk throughout an organization. IA can work with business process owners to write algorithms to allow greater self-monitoring of risks at the business or functional unit levels. They can then work to oversee the entire process to make sure the business processes stay within acceptable or defined risk parameters and report back to the Board of Directors.
In Part II we consider the three steps of evolution that IA must go through to move to a more robust role in the overall risk management process.
What is the purpose of rehabilitation in a best practices compliance program? In this episode, I use the recent trade by the Houston Astros for closer Roberto Osuna last week as an introduction into several areas around compliance, discipline, punishment and zero tolerance. Osuna had been charged with violating the Major League Baseball (MLB) policy on domestic abuse. This weekend Osuna came off a 75-game suspension. It involved an incident for assault, for which Osuna pleaded not guilty to in a criminal case in Ontario. As part of this discussion, I consider several questions.
For more reading see my blog post Due Diligence, Zero Tolerance and Compliance.
As we begin the dog days of summer and the long spell between July 4thand Labor Day, the Everything Compliance gang returns to its four focused topics. After the commentary we follow with rants.
The members of the Everything Compliance panelist are:
The host and producer (and sometime panelist) of Everything Compliance is Tom Fox the Compliance Evangelist.
Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly and I take a deep dive into the imbroglio Salesforce found itself in when it came out the company did work for ICE.
We use this dialogue as a starting point to discuss some of the following:
We unpack of all these points and consider the risk management strategies going forward.
For more reading: see Matt’s piece Salesforce Runs Into Trump Risk
This week the gang returns to its four focused topics. After the commentary we follow with rants.
The members of the Everything Compliance panelist are:
On this episode, we are joined as a special guest panelist, Jonathan Mark, a partner at Marcum LLP.
The host and producer (and sometime panelist) of Everything Compliance is Tom Fox the Compliance Evangelist.
In this episode I podcast favorite James Koukios returns to discuss some of the highlights from the Morriston and Foerster newsletter on Top Ten International Anti-Corruption Developments for April 2018. Some of the highlights include:
As get ready for a holiday week, Jay Rosen and myself are back in the saddle again to take a look at some of the top compliance stories from the past week.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly and I take a deep dive back into the impact of the Trump Administration’s attack on friend and foe alike with tariffs, trade wars, embargoes and sanctions. This is also our first live podcast from Matt’s stomping grounds in Cambridge, MA.
What does all this mean for the compliance practitioner? Obviously, your job just became a lot harder. The scrutiny both public and private will be much greater. You will need much greater visibility into what business your organization is into going forward.
For more reading: see Matt’s piece on “Corporate Ethics & Politics: It’s Gonna Get Worse” and “Trade War! Trade War! Man the Barricades!”,both on Radical Compliance. See Tom’s piece, “Condos, Corruption and Compliance” in Compliance Week.
Before we head to Boston for an event at AMI on Monday, Jay Rosen and myself are back in the saddle again to take a look at some of the top compliance stories from the past week.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
Before we head to Boston for bagels, coffee and compliance at the offices of AMI, Jay Rosen and I review the week's top ethics and compliance stories on This Week in FCPA.
Everything Compliance is the only roundtable podcast in compliance, with four of the top compliance practitioners around. This week the gang returns to its four focused topics on its Four of a Kind edition. After the commentary we follow with rants.
The members of the Everything Compliance panel are:
The host and producer of Everything Compliance is Tom Fox theCompliance Evangelist. His most recent book, The Complete Compliance Handbook is available on amazon.com.
Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt Kelly and I take a deep dive back into the issue of the decline in Initial Public Offerings (IPOs). We consider legislation in the House of Representatives to gut the compliance requirements of Dodd-Frank and SOX, all in the name of increasing the number of IPOs.
We review the testimony of Columbia Law School Professor John Coffee before a Congressional committee about these latest initiatives. His testimony is reported by Kevin LaCroix in his most excellent blog, the D&O Diary. Professor Coffee’s testimony reflects his skepticism that further deregulation alone will result in increased numbers of IPOs. He relates several reasons for the worldwide drop in IPOs, which have nothing to do with Dodd-Frank, SOX or any other US law as they are structural and baked into the global financial system. He also notes that small companies which do go IPO usually have much worse financial performance than companies which seek funding through private equity.
Professor Coffee’s testimony clearly demolishes the myth that Dodd-Frank was a job killer bill or that SOX’s Sec. 404 and 302 requirements have lessened the number of IPOs. There are a wide variety of factors, none of which has been addressed in the House legislative initiatives.
With a wild ride of FCPA cases over the past week, Jay Rosen and myself are back in the FCPA saddle again to take a look at some of the top compliance stories from the past week.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
In this episode I visit with John Torres, the COO of Guidepost Solutions. We discuss the recent SEC enforcement action involving Yahoo and its failure to disclose data breaches in 2014, 2015 and 2016. As this was the first SEC enforcement action involving a public company for the failure to disclose to investors and shareholders information of a data breach which materially impacts an organization, Torres and I take a deep dive into the matter.
In this episode, we consider some of the following issues:
For a full copy of the SEC Order involving the Yahoo matter, click here.
With The Complete Compliance Handbook still sitting at the top of the rankings in its first week of sales, Jay Rosen and myself take a look at some of the top compliance stories over the past week, in the we're still no.1 Edition.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
In this episode, Matt Kelly and I take a deep dive into the travails of Roseanne, her television network ABC and compliance over her vile and racist tweet comparing Obama advisor Valerie Jarrett to an ape. Immediately recognizing this is not a free speech issue, we consider the corporate response in light of corporate ethics, values and priorities. Matt wrote a great blog post on the topic, cited below.
We consider how social media has not only changed the acceleration of negative events and reputational damage but how companies must balance some quite sensitive and important interests to make the right call on their response. We consider the response of ABC and recently Starbucks over its racial issues and contrast the approach of United Airlines when a passenger was literally dragged off a plane, while holding a confirmed ticket. In today’s age of the social media accelerant, this is one podcast you cannot afford to miss.
Matt Kelly’s piece Roseanne, Corporate Priorities, and Social Media
With The Complete Compliance Handbooksitting at the top of the rankings in its first week of sales, Jay Rosen and myself take a look at some of the top compliance stories over the past week.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
This week the gang sticks a roundtable Q&A, with a focus on the Michael Cohen imbroglio. Jay Rosen considers the lessons to be learned in hiring third-parties. Matt Kelly considers issue from the COSO angle: the control environment v. compliance activities. Mike Volkov weighs in search warrant and Bank Secrecy Act perspective. Jonathan Armstrong adds his own unique British perspective (IE., snark) to the conversation. In addition to the commentary we have the following rants:
4. Jay rants on the lack of respect for his beloved Red Sox.
In this episode I visit with Nate Lankford, member at Miller & Chevalier on the firm’s FCPA Spring Review 2018. The quarterly Miller review is also an excellent resource for any FCPA or compliance practitioner, chocked full of statistics on enforcement actions, legal and compliance analysis, reports on international FCPA developments and commentary. It has always been a ‘Must Read’ review for any compliance professional. The FCPA Spring Review 2018 continues this trend.
In this episode, we consider some of the following issues:
A copy of the Miller & Chevalier FCPA Spring Review 2018 can be found here.
The quarterly Miller FCPA Review is a must read for any compliance professional. The Spring Review 2018 is no exception.
With Uncle Duke joining the compliance debate around Michael Cohen, Jay Rosen and myself take a look at some of the top compliance stories over the past week.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.
In this episode, Matt Kelly and I take a continued deep dive into the travails of Michael Cohen, AT&T and Novartis for their hire of Cohen’s company Essential Consulting. After last week’s emergency podcast on the topic, we take a more measured discussion of the latest series of allegations. We discuss the PR disaster which has beset both AT&T and Novartis and where things may be headed.
For more reading on Cohen, Essential Consulting, AT&T and Novartis, see
Tom’s three piece series:
Michael Cohen, 3rd Party Consultants and Hunter S. Thompson: Part I
Michael Cohen, 3rd Party Consultants and Hunter S. Thompson: Part II, Full Gonzo
Michael Cohen, 3rd Party Consultants and Hunter S. Thompson: Part III - Where is Uncle Duke?
Matt Kelly’s piece AT&T Wins Ethics Award, Looks Ridiculous
In this episode I present a live podcast recording made at the 6thLEC Compliance Conference in Sao Paulo last week. In the podcast I interviewed Carlos Ayres, partner at Meada, Ayres and Sarubbi and Matt Ellis, Member at Miller & Chevalier. We discuss the burgeoning compliance scene in Brazil and across the continent of South America. Ayres reflects on some current issues facing compliance practitioners in region. Ellis discusses the raft of new anti-corruption laws in the continent. They both discuss the challenge of representing multi-nationals across the continent who may be subject multiple ongoing investigations and enforcement actions. They point out some of the unique compliance issues for the region. It is fascinating discussion of the current state of compliance and anti-corruption enforcement in Brazil and across the entire continent.