Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings 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.
Stories we are following in today’s edition:
Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data Driven Compliance podcast, hosted by Tom Fox. This podcast features an in-depth conversation about the uses of data and data analytics in compliance programs. Data Driven Compliance is back with another exciting episode. Today, Tom takes a solo turn to consider using AI to facilitate compliance investigations.
The advent of artificial intelligence (AI) is revolutionizing the landscape of legal and compliance investigations, enhancing substantiation rates, expediting case closure times, and preserving crucial evidence. Tom Fox, a seasoned expert in the field, firmly believes in the transformative potential of AI in this domain. He posits that AI can significantly improve regulatory compliance by enhancing substantiation rates, shortening case closure times, and preserving key evidence. Fox’s perspective is shaped by the current challenges initially posed by the COVID-19 pandemic, which made traditional methods of internal interviews and company data analysis less feasible, and those challenges coming out of the pandemic.
He advocates using AI technology to search unstructured web and social media data, leading to more efficient and conclusive investigations. Furthermore, he underscores the importance of data preservation and the ability of AI to analyze large volumes of social media data, thereby reducing investigation length and promoting fair institutional justice. Join Tom Fox in this episode as he delves deeper into this fascinating topic.
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Tom Fox
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Innovation comes in many areas, and compliance professionals must be ready for and embrace it. One of those areas is telehealth and telemedicine. My guest in this episode is Tyler Barron, Chief Revenue Officer at Encapture, who visits with me about innovation in banking compliance.
Encapture is a machine learning platform streamlining back-office processes for banks and lenders, particularly compliance and data reporting. Using document automation and machine learning, Encapture improves efficiency and reduces risk in the document lifecycle. The platform ensures accurate data submission to regulatory authorities and provides audit trails for regulatory purposes. Internal referrals are a powerful marketing tool that allows for an easier transition into becoming an approved supplier. The future of banking compliance lies in bringing intentional insight and value to financial institutions. Encapture aims to deliver year-over-year value and be seen as mission-critical to its client’s businesses. With increasing regulatory pressure, the need for efficient technologies like Encapture’s will continue to grow.
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Tyler Barron on LinkedIn
Tom Fox
Corporate Compliance and Ethics Week will be held from November 5-11, 2023. It is designed to celebrate the compliance function in the corporate world. While many companies celebrate Corporate Compliance and Ethics Week as an annual event to raise awareness about these important topics, the philosophy behind it should be applied throughout the year and in a recent episode of the podcast “Creativity and Compliance” hosted by Tom Fox and Ronnie Feldman, discussed not only the significance of this week but equally significant, the importance of engaging year-round activities in promoting corporate ethics.
One of the key takeaways was the recognition that compliance programs often limit themselves to being fun and interesting only during Compliance Week. Ronnie highlighted the irony of this approach. He questioned why companies would only focus on engaging activities once a year when they inherently recognize that fun and exciting initiatives can have a lasting impact on compliance efforts. Feldman emphasized that the philosophy behind Compliance Week should be applied consistently throughout the year.
Engaging in year-round activities can take various forms. One approach Ronnie discussed is using creative methods such as talk shows, game shows, and workshops. These activities can make compliance more enjoyable and memorable for employees, fostering a culture of ethics and integrity. For example, Feldman shared an example of a client, an Insulin device company, that created a talk show called “Ethically Speaking with Your Host Sugar Levels.” This show allowed the compliance team to be interviewed in a fun and witty manner, making the subject of ethics more approachable and relatable.
Art exhibits were also discussed as a unique way to explore and discuss ethics and integrity. Progressive Insurance, for instance, organized an art exhibit where each piece of art had a tie-in to ethics and integrity. This approach allowed employees to engage with the subject matter more nuanced and thought-provokingly. Bringing art and ethics sparked meaningful conversations, promoting a deeper understanding of ethical principles.
Another exciting suggestion made in the episode was assigning compliance projects to millennials. This approach brings a fresh perspective and better engages a younger audience with different expectations and preferences regarding compliance efforts. By involving millennials in compliance initiatives, companies can tap into their creativity and innovative thinking, making compliance activities more relevant and impactful.
However, it is essential to consider the tradeoffs and challenges associated with engaging in year-round activities for promoting corporate ethics. Budget constraints, time limitations, and the need for continuous innovation can pose challenges for compliance professionals. They are finding the right balance between engaging activities and the practicalities of running a compliance program.
Ultimately, the impact of engaging year-round activities on promoting corporate ethics cannot be underestimated. Compliance programs can have a cultural impact on the entire organization if they are fun, engaging, thoughtful, empathetic, and do not waste people’s time. By investing time and effort into creative and exciting initiatives, companies can create a positive compliance culture that resonates with employees at all levels.
In conclusion, promoting corporate ethics through engaging year-round activities is a powerful approach to fostering a culture of integrity and compliance. Compliance programs should not limit themselves to being fun and exciting only during Compliance Week but should embrace the philosophy behind it throughout the year. Companies can make compliance more enjoyable, memorable, and relevant by using creative methods, such as talk shows, game shows, workshops, and art exhibits. Assigning compliance projects to millennials can bring a fresh perspective and engage a younger audience better. While challenges and tradeoffs may be involved, the long-term benefits of hiring year-round activities in promoting corporate ethics are worth the investment.
Check out the full Corporate Compliance Week 2023 episode with Tom Fox and Ronnie Feldman on Creativity and Compliance here.
Going into the 2020s and beyond, a corporate compliance function must be integral to your business strategy. One of the key reasons is that the ever-important debate of compliance as a cost center will become more critical in the future in this decade. If compliance programs are ineffective, enforcement actions will continue to be highly costly. Over the last 10 years, there has been an increasing impact on the business where you must have compliance resources focused on remediation and business resources. This has only grown greater with reputational risks amplified by social media.
This is because as significant (and costly) as these regulatory fines and penalties have been, it is the intangible reputational damage that, in the long run, maybe even more expensive. Multiple stakeholders who might not desire to play out on the risk curve might be at higher risk, located in higher jurisdictions, or operating in higher-risk industries. Further, there are other consequential impacts if compliance does not have a seat at the table. Suppose compliance has a seat at the table. In that case, there can be some leeway for compliance officers and firms to figure out how best to roll out a compliance program that is commensurate with the organization’s risk and compliant with the regulations. If compliance is relegated to the back of the (corporate) bus, there will be little chance to do so.
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For more information, check out The Compliance Handbook, 4th edition, here.
Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. Today, we begin a short podcast series on the Albemarle FCPA enforcement action. Today, we have Karen Moore on the internal controls failures and other areas identified in the SEC enforcement action.
The recent FCPA enforcement action against Albemarle has sparked a lively debate in the compliance community, particularly regarding the company’s internal controls, imposed penalties, and the lack of monitorship. While Karen is surprised at this development, Tom believes it is consistent with the new DOJ FCPA policy.
One of the key takeaways from the episode is the importance of thorough due diligence and stronger measures to prevent corruption. The case highlights the need for compliance officers to operate beyond their comfort zones and ensure that the right people receive the right training to spot issues. It also raises questions about the credibility of messages about risk tolerance from senior leadership and the effectiveness of deal reviews. Join us as we dive deeply into these issues in this FCPA Compliance Report podcast episode.
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Tom Fox blog post series on the Albemarle FCPA Enforcement Action.
Tom Fox
