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Compliance Tip of the Day

Compliance Tip of the Day: Continuous Monitoring of AI

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In today’s episode, we begin a weeklong look at some of the ways Generative AI is changing compliance and risk management. Today we consider some of the key challenges that organizations need to navigate to accomplish continuous monitoring of AI.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Daily Compliance News

Daily Compliance News: June 14, 2024 – The Headed to Rehab 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 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.

In today’s edition of Daily Compliance News:

  • Tyson Foods CFO was suspended for drunk driving. (Bloomberg)
  • 5 takeaways from the Menendez trial. (CNN)
  • The FAA says greater oversight is needed over Boeing. (NYT)
  • FTX administrator looking again at Sullivan and Cromwell. (Law.com)

For more information on the Ethico ROI Calculator and a free white Paper on the ROI of Compliance, click here.

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Blog

AI in Compliance Week: Part 5 – Continuous Monitoring of AI

This blog post concludes a five-part series I ran this week on some of the keys intersecting AI and compliance. Yesterday, I wrote that businesses must proactively address the potential for bias at every stage of the AI lifecycle—from data collection and model development to deployment and ongoing monitoring. In this final blog post, I deeply dive into continuously monitoring your AI. We begin this final Part 5 with some key challenges organizations must navigate to accomplish this task.

As we noted yesterday, data availability and high data quality are essential. Garbage In, Garbage Out. Robust bias monitoring requires access to comprehensive, high-quality data that accurately reflects the real-world performance of your AI system. Acquiring and maintaining such datasets can be resource-intensive, especially as the scale and complexity of the AI system grow. However, this is precisely what the Department of Justice (DOJ) expects from a corporate compliance function.

How have you determined your key performance indicators (KPIs) and interpretation? Selecting the appropriate fairness metrics to track and interpret the results can be complex. Different KPIs may capture various aspects of bias, and tradeoffs between them can exist. Determining the proper thresholds and interpreting the significance of observed disparities requires deep expertise.

Has your AI engaged in Model Drift or Concept Shift? Compliance professionals are aware of the dreaded ‘mission creep. AI models can exhibit “drift” over time, where their performance and behavior gradually diverge from the original design and training. Additionally, the underlying data distributions and real-world conditions can change, leading to a “concept shift” that renders the AI’s outputs less reliable. Continuously monitoring these issues and making timely adjustments is critical but challenging. Companies will need to establish clear decision-making frameworks and processes to address model drift and concept shift.

Operational complexity is a critical issue in continuous AI monitoring. Integrating continuous bias monitoring and mitigation into the AI system’s operational lifecycle can be logistically complex. This requires coordinating data collection, model retraining, and deployment across multiple teams and systems while ensuring minimal service disruptions.

Everyone must buy in or in business-speak – Organizational Alignment must be in place.  Not surprisingly, it all starts with the tone at the top. Your organization should foster a responsible AI development and deployment culture with solid organizational alignment and leadership commitment. Maintaining a sustained focus on bias monitoring and mitigation requires buy-in and alignment across the organization, from executive leadership to individual contributors. Overcoming organizational silos, competing priorities, and resistance to change can be significant hurdles.

There will be evolving regulations and standards. The regulatory landscape governing the responsible use of AI is rapidly growing, with new laws and industry guidelines emerging. Keeping pace with these changes and adapting internal processes can be an ongoing challenge. Staying informed about evolving regulations and industry standards and adapting internal processes will be mission-critical.

The concept of AI explainability and interpretability will be critical going forward.  As AI systems become more complex, providing clear, explainable rationales for their decisions and observed biases becomes increasingly crucial. Enhancing the interpretability of these systems is essential for effective bias monitoring and mitigation. This will be improved by developing robust data management practices to ensure the availability and quality of data for bias monitoring. The bottom line is that companies should prioritize research and development to improve the explainability and interpretability of AI systems, enabling more effective bias monitoring and mitigation.

A financial commitment will be required, as continuous bias monitoring and adjustment can be resource-intensive. It requires dedicated personnel, infrastructure, and budget allocations and investing in specialized expertise, both in-house and through external partnerships, to enhance the selection and interpretation of fairness metrics. Organizations must balance these needs against other business priorities and operational constraints. Companies must allocate the necessary resources, including dedicated personnel, infrastructure, and budget, to sustain continuous bias monitoring and adjustment efforts.

Organizations should adopt a comprehensive, well-resourced approach to AI governance and bias management to overcome these challenges. This includes developing robust data management practices, investing in specialized expertise, establishing clear decision-making frameworks, and fostering a responsible AI development and deployment culture.

Continuous monitoring and adjusting AI systems for bias is a complex, ongoing endeavor, but it is critical to ensure these powerful technologies’ ethical and equitable use. By proactively addressing the challenges, organizations can unlock AI’s full potential while upholding their commitment to fairness and non-discrimination.

By proactively addressing these challenges, organizations can unlock AI’s full potential while upholding their commitment to fairness and non-discrimination. Continuous monitoring and adjusting AI systems for bias is a complex, ongoing endeavor, but it is a critical component of responsible AI development and deployment.

As the AI landscape continues to evolve, organizations prioritizing this crucial task will be well-positioned to navigate the ethical and regulatory landscape, build trust with their stakeholders, and drive sustainable innovation that benefits society.

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It's art

It’s art, let’s talk about it: Western Art Chronicles – A Journey with Dr. Michael Duchemin

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 award-winning podcast series, Museum Executive Direct 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 Dr. Michael Duchemin, an esteemed art historian and museum professional.

The discussion spans Duchemin’s illustrious career, from his academic beginnings at Arizona State University to his pivotal roles at the Autry Museum, Briscoe Museum, and the C.M. Russell Museum. Dr. Duchemin offers fascinating insights into the world of Western American fine art, detailing his experiences with influential figures, the challenges of art preservation, and his transition to museum consulting and art appraising.

Listeners will gain a deep understanding of the evolution of Western art, the dynamics of exhibitions, and the significance of professional relationships in the art world as well as Duchemin’s future projects and aspirations.

Highlights Include:

  • Michael’s Early Career and Education
  • Journey Through Various Museums
  • The Autry Museum Experience
  • Challenges and Changes at the Russell Museum
  • Transition to the Briscoe Museum
  • New Ventures in Art Appraisal and Consulting

Resources:

Museum of Western Art

Connect with Dr. Michael Duchemin in the following:

Instagram

Facebook

LinkedIn

X

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The Corruption Files

The Corruption Files: BCCI – The Bank That Changed Global Banking Regulations

What is stranger than fiction? The stories of worldwide corruption. In this podcast series, co-hosts Tom Fox, the Voice of Compliance and Mike DeBernardis, partner at Hughes Hubbard, discuss some of the most audacious corruption cases in anti-corruption enforcement. More importantly, they will discuss the lessons learned on what your organization can do to prevent running afoul of international anti-bribery laws.

In this episode of Season 2, Tom and Mike take a deep dive into the sordid history of the Bank of Credit and Commerce International (BCCI) (AKA Bank of Crooks and Criminals International).

BCCI was founded in 1972 to facilitate banking for developing countries. BCCI quickly devolved into a hub for money laundering, terrorism financing, and regulatory evasion. They discuss the bank’s complex web of shell companies and insider loans and how a 1991 investigation led by Senator John Kerry exposed these illicit activities.

The episode also highlights the involvement of notable figures like Clark Clifford and Robert Altman in BCCI’s operations and the subsequent legal battles they faced. Finally, the hosts examine the long-lasting impact of the BCCI scandal on global and U.S. banking regulations, including the establishment of stricter anti-money laundering laws and enhanced international cooperation.

Key Highlights:

  • The Rise and Fall of BCCI
  • BCCI’s Regulatory Evasion Tactics
  • BCCI’s Involvement in Terrorism and Illegal Activities
  • The Congressional Investigation and Shutdown
  • BCCI’s U.S. Operations and Legal Troubles
  • High-Profile Trials and Acquittals
  • Modern Parallels

 Resources:

Mike DeBernardis on LinkedIn

HughesHubbardReed

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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The Paw Talk

Pawtastic Friends: The Paw Talk – Marchy, Eva and Zeri

Welcome to Pawtastic Friends-The Paw Talk. In this podcast, host Tom Fox will visit with Michael and Melissa Novelli, co-founders of Pawtastic Friends, as well as those who work with them at Pawtastic Friends. Michael and Melissa are dedicated to helping shelter and rescue dogs in the Las Vegas area become more adaptable through enrichment training and activities such as yoga and aquatics training, as well as obedience and agility.

This podcast is sure to tug on your heartstrings; just listen to how sweet this one dog is! Tune in now to hear more from Michael and Melissa Novelli as they discuss their passion for helping pups in need. Get ready for an exciting episode of Pawtastic Friends: The Paw Talk!

In this episode, we feature Marchy, Eva, and Zeri.

Michael and Melissa Novelli discuss how partnerships with shelters play an essential role in the successful adoption of rescue dogs, fostering a collaborative environment where fosters, trainers, shelters, and the community work together to provide the necessary care and training.

Melissa values these partnerships, recognizing the importance of working together to achieve a common goal of getting dogs adopted.

For Michael, the emphasis is on team effort and collaboration with shelters to effectively promote and network dogs for adoption and he highlights the mutual support and resource sharing that make these partnerships successful.

Together, they appreciate the critical role that fosters play in offering a loving environment and participating in training sessions to build confidence, social skills, and trust in dogs, ultimately leading to happy and successful adoption outcomes.

Quotes:

“It’s just amazing to see the dogs and all they can be, you know, and their journey to becoming their best version of themselves.” – Melissa Novelli

“It’s not just, hey, I’m going to send my dogs to training. They have to share the videos. They have to do promote the dogs, because at the end of the day, the common goal is to get the dog adopted.” Melissa Novelli

“If it’s hot and your dog starts panning, that means, you know, they’re stressed, their body stressed. They’re working very hard.” – Michael Novelli

Resources:

Pawtastic Friends

Donate to Pawtastic Friends

Pawtastic Friends on Instagram

Pawtastic Friends on Facebook

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Hill Country Artists Podcast

Hill Country Artists Podcast: Exploring The Evolution and Vibrancy of The Hill Country Art Fair with Nancy Huffman

Delve into the heart of the Texas Hill Country with award winning “Hill Country Artists Podcast,” which illustrates and illuminates the vibrant tapestry of art rooted in this iconic region. From the sun-drenched limestone cliffs to the serene Guadalupe River, the Hill Country has been a muse for countless artists, providing a unique backdrop for creativity to flourish.

In each episode, we uncover the stories behind the area’s most captivating artworks, converse with local artists about their inspirations, and explore the fusion of Texan traditions with contemporary artistic expressions.

In this episode of the Hill Country Artists podcast, Tom visits another artist of the Magnificent 7, Nancy Huffman, to discuss the upcoming Hill Country Art Fair, previously known as the Hunt Art Fair. Nancy outlines its inception, rebranding, and the vibrant local art scene. She also highlights the new venue, Bridget’s Basket, and its supportive role in the community. The discussion includes details about participating artists, their works, and the rich history of art in the Hunt area. Nancy also shares specifics about the upcoming fair dates and how artists can get involved.

Key Highlights:

  • The Evolution of the Hunt Art Fair
  • The Local Art Scene in Hunt
  • Bridget’s Basket: A New Venue
  • Exhibiting Artists and Their Works
  • Event Details and How to Participate

Hill Country Artists

Hunt Art Fair

Categories
FCPA Survival Guide

FCPA Survival Guide: Step 3 – Extensive Remediation

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement for extensive remediation.

Tom Fox and Nick Gallo are back to look at the importance of extensive remediation in compliance, particularly in the context of the FCPA enforcement actions. They highlight three enforcement actions – ABB, Albemarle, and SAP – to demonstrate how companies have implemented effective remediation strategies. ABB’s approach included a comprehensive data analytics program and cultural changes led by Chief Integrity Officer Natalia Shehadeh. The DOJ’s recognition of data analytics in the Albemarle and SAP cases signals a shift from cutting-edge practices to standard expectations in compliance. The episode also delves into the transformation of business models as a form of remediation, with Albemarle and SAP making significant changes to their sales strategies to manage risks better and ensure direct customer relationships. Through these discussions, Tom and Nick emphasize that extraordinary remediation is about authentic efforts to improve compliance and reduce risk, not just fulfilling minimal requirements.

Key Highlights and Issues

  • Exploring ABB’s Compliance Remediation Strategy
  • Beyond Checking the Box: A Deep Dive into Compliance Remediation Mindset
  • The Power of Data Analytics in Compliance Remediation
  • Transforming Business Models for Better Compliance Remediation

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Compliance Tip of the Day

Compliance Tip of the Day: Keeping Your AI – Powered Decisions Fair and Unbiased

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements.

Whether you’re a seasoned compliance professional or just starting your journey, our aim is to provide you with bite-sized, actionable tips to help you stay on top of your compliance game.

Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law.

Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

In today’s episode, we begin a weeklong look at some of the ways Generative AI is changing compliance and risk management. Today we look at how to keep your AI running in a fair and unbiased manner.

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

Categories
Daily Compliance News

Daily Compliance News: June 13, 2024 – The Alito Whines 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 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.

In today’s edition of Daily Compliance News:

  • Alito whines about being caught for corruption. (TheNewRepublic)
  • Elizabeth Holmes’s fraud appeal was heard by judges. (BBC)
  • More Chinese companies have been added to the sanction list for using forced labor. (WSJ)
  • Terraform settles with the SEC for $4.5bn. (FT)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.