In an area of inquiry entitled Oversight, the 2020 Update asks three basic questions which we have explored throughout this chapter:
- What compliance expertise has been available on the Board of Directors?
- Have the Board of Directors held executive or private sessions with the compliance function?
- What types of information has the Board of Directors examined in their exercise of oversight in the area in which the misconduct occurred?
To facilitate the answers to these questions, consider this list of 20 questions to reflect the oversight role of directors. These are questions the Board should ask of both senior management and the Board should ask itself. The questions are not intended to be an exact checklist, but rather a way to provide insight and stimulate discussion on the topic of compliance. The questions provide directors with a basis for critically assessing the answers they get and digging deeper as necessary. Although the questions apply to most medium to large organizations, the answers will vary according to the size, complexity and sophistication of each individual organization.
Three key takeaways:
- The DOJ Evaluation requires active Board of Director engagement around compliance.
- Board communication on compliance is a two-way street; both inbound and outbound.
- Has the Board built an effective Compliance Committee for itself?
