In today’s edition of Daily Compliance News:
- Ten most innovative brands of 2020. (Fast Company)
- 1700 Google workers NOT working on White House site. (NYT)
- Current Airbus CEO ran dodgy business unit. (WSJ)
- Employee data and coronavirus. (WSJ)
Day: March 16, 2020
How can you use the tools of Artificial Intelligence (AI) and data analytics in a best practices compliance program. Vincent M. Walden, a partner at Alvarez and Marsal (A&M), wrote an article entitled “Profit & Loss-of-One” (P&L-of-One) where he detailed how he and his then colleagues at Ernest & Young (EY) worked in conjunction with the General Electric (GE) compliance function to “improve compliance by using forensic data analytics to provide behavioral insights to their compliance program.” They did this through the innovative use of “digital twins” which Walden described as “digital replicas of physical assets that organizations can use for multiple purposes such as the maintenance of power generation equipment, jet engines and heavy machinery.
The innovation demonstrated through the P&L-of-One shows how the digital transformation of compliance through true operationalization will not only burn compliance into the fabric of an organization but illustrates how more robust compliance can make a company run more efficiently and, at the end of the day, more profitably. Walden concludes by stating, “The compliance vision of the future seeks to further move compliance towards a more proactive, advocacy role, which helps organizations by providing needed communications, trainings and responses in an automated, intriguing and relevant fashion. This is the compliance vision of the future and what the authors call the P&L-of-One.”
Three Key Takeaways:
- The inspiration of this innovation in compliance came from manufacturing.
- Test through a pilot program.
- Making your messaging automated, intriguing and relevant.
Your company has just made its largest acquisition ever and your CEO says that he wants you to have a compliance post-acquisition integration plan on his desk in one week. Where do you begin? Of course, you think about the 2020 FCPA Resource Guide, 2nd edition but you also remember that the established time frames in the enforcement actions involving Johnson & Johnson (J&J), Pfizer Inc. and DS&S and the Halliburton Opinion Release.
While there are time frames listed in these DPAs, they are a guide of timeframes, not a ‘how to’ guide and many compliance professionals struggle with how to perform these post-acquisition compliance integrations. The 2020 Update to the Evaluation of Corporate Compliance Programs asked the following questions, What has been the company’s process for tracking and remediating misconduct or misconduct risks identified during the due diligence process? What has been the company’s process for implementing compliance policies and procedures, and conducting post- acquisition audits, at newly acquired entities?
Whatever compendium of steps you utilize for post-acquisition integration, they should be taken as soon as practicable.
Three key takeaways:
- Planning is critical in the post-acquisition phase.
- Build upon what you learned in pre-acquisition due diligence.
- You need to be ready to hit the ground running when a transaction closes.
In the Episode, I visit with Bryan Sillaman, Managing Partner of the Paris office of Hughes Hubbard & Reed. In this podcast we discuss the French portion of the Airbus anti-corruption enforcement action.
Some of the highlights include:
- Can you describe the French enforcement authorities and the law under which they investigated and then issued the Judicial Public Interest Agreement with Airbus?
- What is the French Blocking Statute and what role did it play in the investigation?
- Why is this enforcement action a milestone in French anti-corruption enforcement? (If you believe it is)
- What was the final penalty assessed by the French Court?
- How will the monitorship over Airbus work in practice?
- What does the French Judgment say about or do for the PNF?
