Day: July 6, 2023

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Compliance Man Chooses the Target

Compliance Man Takes a Eurotrip – Piotr Żyłka on Poland’s Compliance Revolution

Compliance Man is back for a new season! Get ready for a EuroTrip with Tom Fox and Tim Khasanov-Batirov on their hit podcast, Compliance Man! Join Tom Fox and co-host Timur Khasanov-Batirov on a Euro trip as they delve into the world of Poland’s Compliance Revolution with guest Piotr Żyłka.

The implementation of the Whistleblowing Directive and the Corporate Sustainability Due Diligence Directive into the Polish Legal System could be a major step forward in the fight against corruption. Tom Fox and Tim Khasinov-Batirov had a conversation with Piotr Żyłka, an author of the It’s All About Compliance blog, publisher, and compliance platform in Europe, to discuss the Polish compliance scene and the need for a Polish FCPA. Piotr discussed the banking law requirements, the DOJ guidelines, the New York City Bar Association paper, and the influence of foreign companies on compliance controls in Poland. He also highlighted the need for trainings, engagement of top management, and internal controls like KYC. Tom and Tim thanked Piotr for his time and knowledge and invited him to come back on the podcast to share his views.

Key Highlights

·      Internal Controls in Poland

·      Compliance in Poland

·      Sanctions Compliance

·      A Polish FCPA Needed?

 Resources

Piotr Żyłka on LinkedIn

It’s All About Compliance

Tim Khasanov-Batirov on LinkedIn

Tom Fox

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YouTube

Twitter

LinkedIn

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Advantages of an Internal Reporting System

While it is clear that the government expects companies to have an internal reporting system, there are benefits far beyond putting you in the government’s good graces. Companies with a more robust internal reporting system generated more reports. Dr. Welch found a group of companies he termed “power users”, which were high-level users of whistleblower reporting systems who had more activity than the average entity. These “power user” companies have several interesting characteristics. First, they are typically firms with higher quality earnings reporting. They are more profitable entities. Finally, these “power user” companies were firms with higher quality governance, as rated by the Entrenchment Index, which is used to measure how entrenched management is in a company.

Conversely, companies which were observed to be a more limited user of whistleblower reporting systems are companies that were seen to have poor governance. They are more prone to financial accounting issues, such as discretionary accruals, which could prove problematic. These tend to be smaller and less mature firms. Their overall compliance programs were generally not seen as robust or as effective as those in larger, more mature organizations. Finally, these firms, probably because they were smaller and less mature, are more prone to extreme growth and the problems associated with trying to scale up quickly.
All of this points to one unmistakable conclusion, a robust whistleblower reporting system facilitates a company’s resolution of problems before they become major problems or legal violations bringing the Securities and Exchange Commission (SEC) or DOJ calling.

Three Key Takeaways

  1. Companies with a robust whistleblower and reporting system had greater profitability and workforce productivity as measured by Return on Assets.
  2. There were fewer material lawsuits brought against the company overall and there were lower settlement costs if a lawsuit did occur.
  3. There were fewer external whistleblower reports to regulatory agencies and other authorities.
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Daily Compliance News

Daily Compliance News: July 6, 2023 – The Corruption as Policy Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

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Trekking Through Compliance

Trekking Through Compliance – Episode 35 – The Doomsday Machine

In this episode of Trekking Through Compliance, we consider the compliance and leadership lessons from the episode The Doomsday Machine, which aired on October 20, 1967, and occurred on Star Date 4202.9.
The Enterprise responds to a distress beacon from the Starship U.S.S. Constellation and then finds the battered remains of the ship itself. Kirk sends a boarding party to the Constellation to investigate. It Commander  Commodore Matt Decker is in a state of shock and not very coherent. Even after injection by McCoy, Decker can say that his ship was attacked by “that thing.”
Kirk beams Decker and McCoy back to the Enterprise. The Doomsday Machine attacks the Enterprise.  Commodore Decker pulls his rank and assumes command over Spock’s objections. The doomsday machine attacks the Enterprise. Kirk sees what is going on from the Constellation and begins heading towards the doomsday machine using impulse power.
Kirk angrily orders Spock to re-assume command of his authority, which he does. Decker steals a shuttlecraft and pilots it into the Doomsday Machine, killing himself but producing a small power drop in the doomsday machine. Kirk reasons that the starship explosion might be capable of destroying the alien vessel. Scott rigs the Constellation to explode, then transports it to the Enterprise. The Constellation then explodes, turning the planet killer into a harmless pile of space junk.

Compliance Takeaways:
1.     How do you terminate a third party?
2.     How do you evaluate your risk assessment?
3.     How does your organization respond to findings in an investigation?
Resources
Excruciatingly Detailed Plot Summary by Eric W. Weisstein
MissionLogPodcast.com
Memory Alpha