Day: June 19, 2023

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31 Days to More Effective Compliance Programs

What Leads to a Successful Board Investigation?

Many companies have an investigation protocol in place when a potential Foreign Corruption Practices Act (FCPA) or other legal issue arises. However, many Boards of Directors do not have the same rigor when it comes to an investigation, which should be conducted or led by the Board itself. The consequences of this lack of foresight can be problematic because if a Board of Directors does not get an investigation, which it handles right, the consequences to the company, its reputation, and value can all be quite severe.

In an article in the Corporate Board magazine, entitled “Successful Board Investigations”; David Bayless and Tammy Albarrán, wrote about five key goals that any investigation led by a Board of Directors must meet.

  • Consider whether you need independent outside counsel.
  • Consider hiring an experienced investigator to lead the internal investigation.
  • Consider the need to retain outside experts.
  • Analyze potential conflicts of interest at the outset and during the investigation.
  • Carefully evaluate whistleblower allegations.
  • Request regular updates from outside counsel, without limiting the investigation.
  • Consider whether an oral report at the conclusion of the investigation is sufficient.

The authors conclude their piece by stating, “By keeping in mind the issues addressed above, the Board will be better prepared for the investigation and readily able to exercise good judgment throughout the review. A well-conducted investigation by the Board may spare the company further disruption and costs associated with follow-on investigations by the regulators, or at the very least minimize the company’s exposure.”

Three key takeaways:

  1. Retain the right counsel. Consider conflicts and appearance.
  2. Carefully evaluate all whistleblower allegations and reject retaliation.
  3. Consider receiving oral reports on an ongoing basis and one lengthy oral report at the end of the investigation.

For more information, check out The Compliance Handbook, 4th edition, available here.

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Innovation in Compliance

Building a Stronger Culture of Compliance Through Targeted and Effective Training: Part 1 – The Importance of Ongoing Communications

Get ready to learn about Building a Stronger Culture of Compliance Through Targeted and Effective in a 5 part podcast post series on building a stronger culture of compliance through targeted and effective training, sponsored by Diligent. Over this series, I will visit with Kunal Agrawal, Director of Customer Success at Diligent; Kevin McCoy, Customer Success Manager at Diligent; Jessica Czeczuga, Director, Compliance and Ethics at Diligent; Andrew Rincón, Client Director at Diligent; and David Greenberg, former CEO and Special Advisor at LRN and Director at International Seaways. Over this series, we will consider the importance of ongoing communications, the value of targeted training, training third parties, and the role of the Board of Directors. In this Part 1, we consider the importance of ongoing communications with Kunal Agrawal.

In this episode, Tom Fox visits Kunal Agrawal, the Director of Customer Success at Diligent, about the importance of ongoing communications. Kunal shares his extensive background in technology and customer success and explains how his team helps customers with their day-to-day challenges. The podcast focuses on the significance of ongoing communication in compliance, and Kunal stresses the importance of maintaining a consistent cadence in communication to keep the momentum going. The podcast speakers discuss the use of humor in communication and how it differs based on cultural differences. They also emphasize the importance of understanding guidelines to prevent the compromise of sensitive information. This podcast is packed with valuable insights that will help you improve compliance in your organization. To listen to the full episode, head over to diligent.com!

Key Highlights:

  • The importance of communication cadence in compliance
  • Importance of Communication Cadence
  • Effective Communications for Compliance Professionals
  • Compliance with Sensitive Information

Notable Quotes:

“But you take a little bit different approach, and you help clients think about the ongoing part of ongoing communications. And frankly, I’ve never met anyone who talked about that approach.”

“I think having a certain workflow and, as you said, a cadence is equally important. The number one priority is your annual trainings, which is extremely important, and you need to do it.”

“If there is a pattern to a cadence, then people know what to expect and when.”

“If something goes wrong and if any single person in the organization doesn’t understand the guidelines, and in the processes around this, it can reveal compensation data or even health care data and compromise so much information in the world, which can land into hands of the people you don’t want them to get access to.”

For more information go to Diligent.com.

Join us in our next episode where we consider the value of targeted training.

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Trekking Through Compliance

Trekking Through Compliance – Episode 18 – Arena

In this episode of Trekking Through Compliance, we consider the episode Arena, which aired on January 19, 1967, Star Date 3045.6.

 The Enterprise arrives at the Cestus III Outpost by invitation of its commanding officer, but the crew finds the outpost obliterated and then under attack from an unknown vessel. Both ships enter a new space sector and lose all propulsion power shortly after. Enterprise is contacted by the Metrons, who announce they will pit the respective captains in a one-to-one battle to the death. Kirk is transported to the planet’s surface along with the other captain of the Gorn.

Kirk attempts to communicate with the Gorn but has not received a response. Kirk lies in wait for the Gorn and fires on him. As Kirk prepares to deal a death blow, he considers the Gorn’s claims that the attack on Cestus III was only self-defense and allowed him to live. Suddenly, the Gorn disappears, and a Metron appears to Kirk, congratulating him on not only winning the battle but showing the advanced trait of mercy for one’s enemy, leading the Metron to comment that “you are still half-savage, but there is hope,” and that the Federation should seek out the Metrons again in several thousand years.

Compliance Takeaways:

1.     Get out, talk, but most importantly, listen.
2.     What causes a regular risk to grow into a high risk?
3.     All due diligence may be required, Even with facts on the ground.

Resources:

Excruciatingly Detailed Plot Summary by Eric W. Weisstein for Arena
MissionLogPodcast.com-Arena

Categories
Uncovering Hidden Risks

Ep 8 – Three Steps to Master Information Governance in Your Organization

Randolph Kahn, a globally recognized leader in information governance and President of Khan Consulting, joins Erica and guest host Natalie Noonan on this week’s episode of Uncovering Hidden Risks. Randolph has been an expert witness in significant court cases and is a trusted advisor to corporations and governmental agencies. He is also an accomplished author, speaker, and adjunct professor of Law and Policy of Electronic Information and The Politics of Information. Randolph and Erica discuss Information Governance and the industry trends they are currently seeing in this space.

In This Episode You Will Learn:

  • How the increase in regulations affects current data management trends
  • Why organizations are suffering information mismanagement failures
  •  If current technology capabilities and functionality are sufficient

Some Questions We Ask:

  • What requirements are important for information governance?
  • Why should organizations take advantage of newer technologies?
  • What’s next after an organization has clearly identified its new requirements?

Resources:

View Randolph Kahn on LinkedIn

View Natalie Noonan on LinkedIn

View Erica Toelle on LinkedIn

Categories
Blog

Building a Stronger Culture of Compliance Through Targeted and Effective Training: Part 1- The Importance of Ongoing Communications

Welcome to a special 5 part blog post series on building a stronger culture of compliance through targeted and effective training, sponsored by Diligent. Over this series I will visit with Kunal Agrawal, Director of Customer Success at Diligent; Kevin McCoy, Customer Success Manager at Diligent; Jessica Czeczuga, a Principal Instructional Designer; Andrew Rincon, Global Accounts Management Advisor at Diligent; and David Greenberg, former CEO and Special Advisor at LRN and Director at International Seaways. Over this series, we will consider the importance of ongoing communications, the value of targeted training, training third-parties, and the role of the Board of Directors. In this Part 1, we consider the importance of ongoing communications with Kunal Agrawal.

Compliance professionals are often tasked with the challenge of keeping employees up-to-date with changing rules and regulations while also fostering a culture of accountability. To achieve this, it is essential to develop targeted ongoing communication strategies that resonate with diverse audiences and drive compliance. Through regular cadence of communication, utilizing various mediums, and taking into account cultural nuances, you can ensure that your organization stays ahead of compliance risks and fosters a culture of trust and integrity. Here are the steps to get improved compliance through effective ongoing communication.:

1. Establish a regular cadence for communications
2. Develop customized messages for diverse audiences
3. Utilize various communication mediums effectively

1. Establish a regular cadence for communications. Establishing a regular cadence for communications is a crucial step in achieving effective ongoing communication in compliance. With the ever-increasing complexity of regulations, compliance professionals need to ensure that employees are kept up-to-date on new developments and requirements. A predictable pattern and schedule for communications can help to instill the habit of ongoing communication among employees and stakeholders, ensuring that they are well-informed and prepared to adhere to necessary guidelines. This regularity allows audiences to anticipate and expect updates, making it more likely that they will engage in and retain the information being shared. By maintaining a consistent schedule, compliance professionals can create a conducive environment for the organization to thrive in terms of meeting regulatory guidelines and staying compliant with the latest rules and developments.

Agrawal emphasized the need to maintain regular ongoing communication, as this allows organizations to address the constantly evolving landscape of technology, data privacy, healthcare regulations, and trading compliance challenges. He suggested maintaining a consistent pattern for communications, such as sticking to a set schedule, to create a pattern and habit for employees to follow. Agrawal also acknowledged the importance of customizing these communications across different mediums and using visual aids when appropriate to cater to the needs of different geographical locations, diverse employee profiles, and varied cultural backgrounds. It is essential to establish a regular cadence for communications, as this fosters a culture of compliance and increases employees’ understanding of the guidelines, expectations, and best practices relating to their roles.

2. Develop customized messages for diverse audiences. Ongoing communication in compliance is essential for fostering a strong culture of adherence to regulatory guidelines and instilling the habit of continual learning among employees and stakeholders. With the ever-changing landscape of regulations in various sectors, it becomes increasingly important for compliance professionals to create well-formulated communication strategies that cater to the diverse needs of their audience. One crucial aspect of these strategies is developing customized messages that cater to the unique cultural nuances, roles, and learning preferences of the different members of the organization. By personalizing the content, compliance professionals can ensure that the information is more relevant, engaging and impactful, resulting in more effective communication and, ultimately, better compliance outcomes.

Agrawal focused on the importance of tailoring compliance communications to the specific needs and cultural contexts of diverse audiences. He noted that the ever-evolving nature of technology, data privacy, healthcare regulations, and trading compliance demands that compliance professionals consistently create and deliver content that truly resonates with their audiences. Agrawal highlighted the need to validate internal content with local audiences to guarantee the appropriateness and relevance of the materials.

3. Utilize various communication mediums effectively.  Utilizing various communication mediums effectively is a crucial step in creating an ongoing communication strategy for compliance professionals. With the rapidly changing landscape of regulations, particularly in industries such as technology, data privacy, and healthcare, it is essential to ensure that employees and stakeholders are aware of the latest requirements and guidelines. To achieve this, compliance professionals must adopt a diverse range of communication channels that cater to different audiences, geographical locations, and cultural sensitivities. This includes not only relying on traditional methods such as emails and newsletters, but also embracing newer technologies and platforms, such as instant messaging apps, internal document repositories, and video conferencing tools. By doing so, the compliance professionals can ensure that relevant and timely information is disseminated effectively and efficiently, thereby promoting a culture of compliance and reducing the risk of non-compliance.

Agrawal elaborated on the importance of identifying the right communication mediums to deliver compliance messages effectively. Promoting a culture of continuous communication, Agrawal stressed the need to maintain a regular cadence for communications to create a predictable pattern and habit. This enables the target audience to anticipate and be more receptive to the information shared. Agrawal emphasized the significance of tailoring communication to cultural nuances and appropriateness, particularly with regard to humor. He recommended validating content with a local audience, ensuring that humor is presented effectively and does not alienate or offend the intended recipients.

For compliance professionals striving to maintain a seamless flow of crucial regulatory information, a strategic and robust communication plan cannot be undermined. From our discussion with Kunal Agrawal, we distilled the essence of achieving improved compliance communications. Through regularly engaging with stakeholders in a tailored manner, leveraging multiple communication mediums, and staying attuned to feedback and cultural nuances, compliance officers can ensure that their messaging is accurate, relevant, and impactful. We encourage you to take these invaluable insights to heart, and empower yourself to craft and refine communication strategies that will drive your organization towards compliance excellence.

For more information go to http://diligent.com/compliancetraining.

Join us tomorrow where we consider the value of targeted training.