We often hear the compliance refrain on the importance of tone-at-the-top – meaning when the board, the CEO and senior executives demonstrate by communications and by conduct their commitment to a culture of ethics and...more
A chief compliance officer can only succeed with the support of other important compliance partners. Another way to put it – in the words of Blanche Dubois from A Streetcar Named Desire, “I have always depended on the...more
Compliance officers are trained to spot risks. They have an eagle eye and keen sensitivity. In some cases they have to overcome inaccurate designations – my favorite is a “PEP,” a politically exposed person. ...more
The chief compliances officer is the guardian of a company’s most important intangible asset – its culture. Everyone at a company is responsible for a company’s culture; the board of directors, CEO, senior executives play an...more
These are inspiring times for the compliance profession. Looking back on the last ten years, it is amazing to observe the growth and influence of the compliance profession. Many of the original advocates for the compliance...more
A compliance program is an interdependent function that gains exponentially from coordination and cooperation with key functions. CCOs have to be politicians and they have to develop effective interpersonal skills. Without...more
In the last few years, the tension between chief compliance officers and general counsels appears to have subsided. The issue of separating CCOs from legal departments is not as important as it used to be. Why?...more
A chief compliance officer needs to be independent and have adequate authority within the organization. But do not get confused by the concept of independence. Compliance depends on collaborative relationships with other...more
Let’s face it – corporate boards are not adept at overseeing a company’s compliance program. In the absence of a board member who has prior compliance expertise, corporate boards either ignore or struggle to fulfill their...more
An effective ethics and compliance program depends on the Chief Compliance Officer’s authority, independence, and resources. A company’s commitment to a compliance program requires money and employees – there is no question...more
The compliance community is well aware of the risks in the C-Suite. As you move up the corporate ladder, the level of risk from executive misconduct increases. A rotten executive can quickly bring down a company, destroy...more
2/1/2018
/ Accounting Fraud ,
Automotive Industry ,
Bribery ,
C-Suite Executives ,
Chief Compliance Officers ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Corruption ,
Criminal Conspiracy ,
Ethics ,
Foreign Corrupt Practices Act (FCPA) ,
KPMG ,
Obstruction of Justice ,
Och-Ziff ,
PCAOB ,
Rolls-Royce ,
Tone At The Top ,
Volkswagen ,
White Collar Crimes
The chief compliance officer is at an important professional juncture – 2018 is an important year for the profession. In this era of growth, and after corporate tax relief, companies have an opportunity to invest increased...more
My final posting on this week’s ethics series is a call to action for all compliance professionals. Every compliance officer should insist on and embrace a title – “Chief Ethics and Compliance Officer.” Some larger...more
Chief compliance officers are politicians and have to possess great interpersonal skills. They have to “get along” and persuade key constituencies — most especially their business partners – to commit and devote time and...more
As we celebrate Ethics and Compliance Week in 2017, I wanted to offer my own assessment of where the compliance profession stands and the challenges facing the profession for the future....more
Human resources and compliance professionals share many common objectives and interests. They need to coordinate and operationalize their joint interests in a variety of ways....more
11/2/2017
/ Chief Compliance Officers ,
Compliance ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Ethics ,
Hiring & Firing ,
Human Resources Professionals ,
Internal Controls ,
Pre-Employment Agreements ,
Screening Procedures
I always enjoyed the assumption underlying economic models – assuming people are rational actors, then . . . Sometime people do not act rationally, and sometimes people react out of fear or make unrealistic assumptions....more
A company that commits bribery has to undergo a soul-searching examination of its operations, from top to bottom. Bribery violations come in all shapes and forms – systemic violations like Siemens, Daimler and other...more
10/30/2017
/ Bad Actors ,
Banking Sector ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Corruption ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
JPMorgan Chase ,
Sons And Daughters ,
White Collar Crimes
In the aftermath of the Panama Papers scandal and increased focus on shell companies and hidden ownership interests, US enforcement and regulatory agencies are increasing focus on beneficial ownership of related entities. In...more
In Part IV of my series on ISO 37001, I examine requirements relating to risk assessments, design of policies and procedures, and due diligence requirements.
Section 4.5 sets out requirements for conducting risk...more
10/19/2017
/ Anti-Bribery ,
Anti-Corruption ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Conflicts of Interest ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Due Diligence ,
Leadership ,
Performance Incentives ,
Policies and Procedures ,
Risk Assessment ,
Risk Management ,
White Collar Crimes
In Part III of my continuing series on ISO 37001, today I examine the board and top management’s respective responsibilities in the implementation and oversight of an anti-bribery management system....more
10/18/2017
/ Anti-Bribery ,
Anti-Corruption ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Corporate Culture ,
Corporate Governance ,
Corporate Management ,
Corruption ,
Leadership ,
Risk Management ,
White Collar Crimes
In Part II of my continuing series, I identify in broad strokes some of the more significant positive and negative aspects of ISO 37001. While it is easy to second-guess the ISO 37001 authors, there are some interesting...more
10/17/2017
/ Anti-Bribery ,
Bribery ,
Chief Compliance Officers ,
Compliance ,
Compliance Management Systems ,
Corporate Governance ,
Corruption ,
Ethics ,
Internal Controls ,
Risk Management ,
Risk Mitigation ,
White Collar Crimes
Lawyers get a bad rap, and I am not just referring to all the lawyer jokes we have heard numerous times. Lawyers get a bad rap when it comes to compliance. Much of it is not deserved – but candidly, some of it is deserved....more
Compliance officers have to avoid complicating a compliance program. As in many areas in life, there is a value in simplicity.
Take for example a compliance training presentation. If a compliance officer overwhelms his/her...more
Instead of wrestling over the definition of an “effective” ethics and compliance program, let’s take a step back and define what we all agree on is an “ineffective” compliance program. Unfortunately, when you work in the real...more