Day: November 16, 2023

Categories
Daily Compliance News

Daily Compliance News: November 16, 2023 – The Legal Baggage Edition

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:

  • Corruption in lithium mining in Africa. (Inside Climate News)
  • The State of Texas moves to anti-business. (Bloomberg)
  • The legal baggage at Fox News is awaiting Lachlan.  (FT)
  • Potential CFPB arbitration ban. (Reuters)

 

Categories
Life with GDPR

Life With GDPR – Lessons Learned from The Singtel Opus Data Breach

Tom Fox and Jonathan Armstrong, renowned experts in cyber security, co-host the award-winning Life with GDPR. In this episode, they look at litigation over a data breach against Singtel Opus in Australia and the fallout from an investigation report.

The recent data breach at Intel Optus, affecting 1.2 million individuals, has brought to light the critical role of strategic communication in managing cybersecurity breaches. Tom and Jonathan Armstrong, offer their unique perspectives on this issue. Fox emphasizes the inevitability of cybersecurity breaches and the need for a comprehensive strategy, including effective communication, to manage them. He warns against the potential consequences of mishandling communication during a breach, such as jeopardizing insurance coverage.

Armstrong highlights the complexity of maintaining privilege in a global corporate structure and the importance of careful language to avoid invalidating insurance or causing unnecessary speculation. He also underscores the need for a holistic approach to cybersecurity, encompassing prevention, detection, remediation, and crisis communication. Join Tom Fox and Jonathan Armstrong as they delve deeper into this topic in the latest Life with GDPR podcast episode.

  •  Key Takeaways:
  • Implications of Language in Data Breach Reporting
  • Navigating CEO Communication and Insurance Coverage
  • Navigating Insurance Coverage in Data Breaches

 Resources

For more information on the issues raised in this podcast, check out the Cordery Compliance, News Section. For more information on Cordery Compliance, go to their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here. Check out the Cordery Data Breach Academy here.

Connect with Tom Fox:

Connect with Jonathan Armstrong:

●   Twitter

●   LinkedIn

Categories
It's art

It’s art, let’s talk about it – Mark McKenna, Paint What You Love

The Museum of Western Art is dedicated to excellence in the collection, preservation, and promotion of Western Heritage and the education and cultural enrichment of our diverse audiences. The Museum serves as a bridge between the past and the present, ensuring that the legacy of the American West will be preserved for the future. Western Art is as engaging and important as ever. In this podcast series, Museum Executive Director Darrell Beauchamp visits with the artists who work in this Western heritage to talk about their work, the legacy of Western Art, and why talking about it is so important today. In this episode, Darrell visits with Mark McKenna.

Mark McKenna’s journey into the art world was not predetermined but evolved over time, starting from his high school years. Initially planning to become a dentist, McKenna was convinced by a professor and professional illustrator to pursue his passion for art. This decision set him on a path that would lead to his evolution from an art teacher to a renowned wildlife artist.

McKenna’s love for art was evident from a young age. In high school, he recognized that he would make art for his entire life. However, the idea of making a living as an artist seemed far-fetched, as he observed that most artists were struggling financially. With a desire to provide for a family, McKenna initially planned to become a dentist. It was during his time at Brigham Young University, Idaho, that a professor and professional illustrator recognized his talent and convinced him to pursue a career in art.

The professor’s advice resonated with McKenna, and he realized that he could create beautiful things as an artist instead of working in people’s mouths. This revelation changed the course of his life, and he decided to pursue a Bachelor of Fine Arts in illustration. As he got closer to graduation, McKenna also double majored in art education, which eventually led him to become a high school art teacher.

Teaching art allowed McKenna to combine his love for art with education. For eight years, he taught high school art, with seven of those years spent in Cody, Wyoming. This location proved to be a perfect fit for McKenna, as it provided him with inspiration from the wildlife and natural beauty of the area. Teaching also provided him with financial stability, allowing him to focus on his art without the pressure of making sales.

During his teaching years, McKenna attended a workshop with renowned wildlife artist Greg Beecham, who became his mentor. This workshop proved to be a turning point in McKenna’s career. The guidance and inspiration he received from Beecham elevated the quality of his work and ignited his passion for wildlife art. Over the next five years, McKenna built his art career, attending shows and making connections in the art world.

In 2018, McKenna made the decision to transition from teaching to becoming a full-time working artist. This transition was smooth, thanks to the foundation he had built during his teaching years and the mentorship of Greg Beecham. McKenna’s art career continued to flourish, with each year bringing new opportunities and growth.

Recognition at the Museum of Western Art was a significant milestone for McKenna. His work is displayed in galleries like Astoria Fine Art in Jackson Hole, Wyoming, and his website, MarkMcKennaStudios.com, provides a platform for art enthusiasts to explore and purchase his artwork. McKenna’s success can be attributed to his dedication to painting what he loves, painting often, and finishing what he starts.

In addition to his artistic skills, McKenna emphasizes the importance of effective self-marketing for artists. He utilizes social media platforms like Instagram and Facebook to showcase his work and connect with his audience. McKenna also understands the importance of proper framing and hanging of artwork, as it can significantly impact the presentation and professionalism of the piece.

Looking to share his knowledge and experience with other artists, McKenna is currently creating an online course that focuses on teaching artists how to utilize Photoshop, various aspects of the painting process, and the business side of art. This course will provide aspiring artists with valuable insights and practical skills to navigate the art world.

Mark McKenna’s evolution from an art teacher to a renowned wildlife artist is a testament to the power of following one’s passion and seeking guidance from mentors. His dedication to his craft, combined with his ability to balance teaching and art, has allowed him to create a successful career in the art world. McKenna’s story serves as an inspiration to aspiring artists, reminding them to paint what they love, seek mentorship, and embrace the opportunities that come their way.

 Resources

Museum of Western Art

Darrell Beauchamp on LinkedIn

Mark McKenna on Instagram

Categories
Innovation in Compliance

The Future of Communication in Financial Compliance: Part 4 – Accentuate the Negative?

This week, I have a special five-part podcast series sponsored by Verint on the Future of Communication in Financial Compliance. My guest in this series is Phil Fry, VP and GTM of Financial Compliance Strategy at Verint. Over this series, we will take a deep dive into the current status of communications in financial institutions, how to be or not be compliant, analysis and insight into the area, and how to avoid accentuating the negative and the human element in compliance. In this fourth podcast, we ask if you must accentuate the negative.

Phil Fry, the VP and General Manager of Financial Compliance Strategies at Verint, brings over forty years of experience in the financial compliance industry and a deep understanding of the challenges financial firms face in adhering to regulations amidst evolving communication modes. He specializes in the voice regulatory compliance capture world, particularly emphasizing the financial industry. He firmly believes in the importance of data quality in financial industry compliance, stressing the need to capture and record all trade-related communications, regardless of the time, place, or platform they occur on.

Fry argues that incomplete or missing data can hinder compliance efforts and investigations and that it is crucial to identify and categorize any gaps in the data to reduce false positives and improve trade surveillance. He also discusses the importance of linking conversations to gain insights into communication patterns and improve investigations. His extensive experience in the field shapes Fry’s perspective, and he is dedicated to solving legacy issues related to third-party identification and linking conversations together for improved investigations. Join Tom Fox and Phil Fry on this episode of the Future of Communications podcast as they delve deeper into the importance of data quality in financial industry compliance.

Key Highlights:

  • Data Gaps and Communication Patterns in Finance
  • Biometric Speaker Detection and Analysis
  • Data Quality: The Key to Reliable Analysis

Resources:

Phil Fry on LinkedIn

For More Information check out Verint.

Categories
Blog

The Importance of Data Quality in Financial Communications Compliance

This week I have a special five-part podcast series, sponsored by Verint on the Future of Communication in Financial Compliance on the Innovation in Compliance podcast series on the Compliance Podcast Network. My guest in this series is Phil Fry, VP and GTM of Financial Compliance Strategy at Verint. Over this series, we will take a deep dive into the current status of communications in financial institutions; how to be or not be compliant; an analysis and insight into the area; and how to avoid accentuating the negative and the human element in compliance. In this fourth post, we consider the importance of data quality in financial institutions’ communications compliance.

In the ever-evolving financial industry, compliance is a critical aspect that ensures the integrity and stability of the market. One key factor that plays a crucial role in compliance is data quality. The ability to capture, analyze, and maintain high-quality data is essential for financial firms to meet regulatory requirements and effectively manage risk. Data completeness is the foundation of any investigation in the financial industry. It is not just about capturing the data, but also about identifying and addressing any gaps in data capture and communication. Regulators are particularly interested in the gaps that go unnoticed, making it imperative for compliance teams to pay close attention to these areas. As Phil Fry emphasized, “It’s the things that go under the radar that regulators are most interested in.”

The financial industry operates across multiple channels, platforms, and modalities, making data capture a complex task. Compliance teams must ensure that they cover a wide range of devices and capture all relevant conversations related to trades. However, challenges arise when employees use different devices or when conversations occur on platforms that are not easily captured. In such cases, compliance efforts are hindered, and the risk of missing critical information increases.

To address these challenges, innovative techniques such as Identity Insights are being employed. Identity Insights leverages biometric techniques to detect and isolate different speakers in a conversation, storing this information securely in a searchable manner. This goes beyond traditional identification methods and helps solve legacy issues in capturing third-party identification across various communication channels. By linking conversations together, compliance teams can gain valuable insights into communication patterns and improve investigations.

Data quality is not just about capturing complete data; it also involves the accuracy and reliability of the captured data. The adage “Garbage In, Garbage Out” holds in the financial industry. If the data captured is of poor quality, any analysis or insights derived from it will be flawed. Therefore, it is crucial to ensure that the captured data is structured, properly labeled, and contains all necessary metadata. This reduces the risk of false positives and enables compliance teams to make informed decisions.

Legacy data poses another challenge in maintaining data quality. While capturing and analyzing real-time data is essential, it is equally important to consider the vast amount of historical data that financial firms possess. The quality and structure of this legacy data can vary, making it difficult to extract meaningful insights. However, advancements in technology offer opportunities to enhance the analysis of legacy data and reduce the risk of crucial information being overlooked.

Balancing the tradeoffs involved in data quality is a constant challenge for compliance teams. On one hand, they need to capture as much data as possible to ensure completeness and accuracy. On the other hand, they must also consider the cost and resources required to manage and analyze large volumes of data. Striking the right balance is crucial to optimize compliance efforts and reduce the risk of regulatory violations.

In conclusion, data quality plays a vital role in financial industry compliance. By focusing on data completeness, addressing gaps in data capture, and leveraging innovative techniques, compliance teams can enhance investigations, improve trade surveillance, and ensure adherence to regulations. The importance of data quality cannot be overstated, as it forms the foundation for accurate analysis and insights. As the financial industry continues to evolve, maintaining high-quality data will be crucial in mitigating risks and ensuring a robust compliance framework.

For More Information check out Verint.

Categories
31 Days to More Effective Compliance Programs

One Month to More Effective Compliance Through Culture: Day 12 – Fixing an Unsafe Workplace

We continue to look at fostering an ethical culture through psychological safety, using as a starting point the “Fostering Ethical Conduct Through Psychological Safety” whose authors believe that “when psychological safety is lacking, it may be a consequence of the employee having witnessed unethical behavior.” The more unethical behavior a person sees, the more likely they are to feel psychologically unsafe.

The authors basically state the obvious when they write, “It makes intuitive sense that being in a work environment where unethical behavior is prevalent might diminish psychological safety.” Put another way “people are most reluctant to speak up in ethically troubled environments, where we most need them to do so.” This is an important issue for every CCO and business leader. To overcome such a deficiency, they found that “several other factors correlated with strong speak-up behavior, keeping everything else constant: moral engagement, moral attentiveness, and organizational justice combined with clarity of expectations.”

Moral engagement. As a CCO you should endeavor to create an atmosphere where ethical conduct matters, “so that when employees recognize a potentially unethical situation, they will be motivated to do what’s right.”

Moral attentiveness. You can educate employees to recognize the ethical dimensions of situations. You can have managers highlight examples of ethical and unethical behavior with their teams and encourage dialogue on workplace ethics.

Organizational justice. Obviously, talk is cheap and it is actions, not deeds, that matter. The DOJ has made clear in the 2023 Evaluation of Corporate Compliance Programs that the keeper and responsibility of institutional justice sits with the CCO and the authors find that this same concept “is vital to building a reputation of organizational justice.”

Clarity of expectations. CCOs must communicate a clear message to employees so that employees will have “an understanding of organizational standards and are clear about expectations.”

Unethical conduct can remain hidden for a time but is likely to be discovered eventually, causing far more harm than if it were caught and corrected early. Psychological safety thus can help organizations respond and improve quickly instead of allowing misconduct and unethical behavior to fester and further degrade workplace psychological safety, thus triggering a vicious cycle.”

 Three key takeaways:

1. Without psychological safety, corporate culture will suffer.

2. When your CEO engages in illegal behavior, what is the impact on culture?

3. Use moral engagement, moral attentiveness, and organizational justice to foster an improved culture.

Do you want to improve your culture? How can you assess your culture and develop a strategy to improve it going forward? In this free webinar on the new tool, The Culture Audit with Tom Fox and Sam Silverstein on Tuesday, November 28, 12 CT. For more information and registration, click here.