Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by the co-hosts of the Great Women in Compliance Podcast, Mary Shirley and Lisa Fine who discuss their personal and professional challenges during this time of coronavirus. The podcast is cross-posted from the Great Women in Compliance podcast, on the Compliance Podcast Network.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.
Day: April 11, 2020
In today’s edition of Daily Compliance News:
- Employees trust their companies around COVID-19. (Houston Chronicle)
- Banks slowing down business stimulus package? (WSJ)
- Has Softbank lost its vision? (Barron’s)
- At least Trump hasn’t blamed cell phone towers (yet). (Washington Post)
An important part of the job duties of any compliance practitioner is clearing red flags which might appear for a proposed third-party relationship during the due diligence process. It is mandatory that not only must all red flags be cleared but there also be evidence of the decision-making process to show to a regulator if one comes knocking. Around third-parties, consider what risks you face in both your sales and supply chain. If there is a key player several tiers down the line who creates or builds a key component or delivers a critical service, you may want to put more management around that relationship from the compliance perspective.
For anything below a tier 2; you may be able to manage your risks through having your direct tier one counter-party take the lead in managing such compliance risks. But make sure that the expectation is communicated to your direct counter-party so that if the government comes knocking you can show that not only did you contractually obligate your direct counter-party to do so but that you provided them the tools and training to do so. Finally, you will need to be able to show that your direct counter-party did so.
Three key takeaways:
- There is no set formula for clearing of red flags or the evaluation of due diligence.
- Know when to say enough has been done.
- You must “Document, Document, and Document” your evaluation of any red flags.
In this five-part series, Mike Volkov and Tom Fox consider COVID-19 from a variety of angles and perspectives; from the Board of Directors, the CCO, the ethical company, new laws and regulations, crisis management and leadership. In this fifth and final episode, we consider the paucity of leadership at the federal level and why this has put businesses at the forefront of leadership during this crisis. Highlights from the podcast include:
- Why do we need strong federal leadership?
- Without federal leadership why is business leadership so important?
- Will CEOs who signed the Business Roundtable’s Statement on the Purpose of an Organization adhere to those principals in this time of crisis?
- What time horizons are you considering?
- Why is trust even more important now?
- How will the COVID-19 crisis test the mettle of companies in ways never seen in our lifetimes?
Resources
Mike Volkov
Call for Leadership
Absence of Federal Leadership
Tom Fox
Trust in the Age of Coronavirus
Final Thoughts
Mike Cherkasky on Testing Your Mettle
