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Revolutionizing Compliance with RegOps

What is RegOps and how will it revolutionize compliance? I recently visited with Anil Karmel to help understand how this concept weds multiple concepts, including data analytics, Design Thinking, AI and other tools to create a powerful mechanism to drive compliance forward.

 The term Reg Ops is coined from the combination of regulation and operations, indicating its focus on streamlining the processes related to policy adoption, regulatory compliance, and risk management. Reg Ops brings a variety of software tools and practices that leverage automation to achieve compliance quickly and efficiently. This approach, with its focus on near real-time and near continuous compliance, is ideal for businesses looking to integrate compliance as part of their core operations without sacrificing productivity. RegOps specifically addresses the unscalable problem of regulatory compliance by incorporating lessons from DevOps. Karmel’s vision was to build a platform that could provide compliant software development continuously and in real-time, thereby changing the compliance landscape. As a result, RegOps introduces a holistic solution that encompasses both human and machine processes for improved efficiency in regulatory compliance.

Chief Compliance Officers (CCOs) and compliance professionals often face the daunting task of keeping up with ever-changing regulations and demonstrating compliance in an efficient and timely manner. The traditional methods for achieving compliance are manual and time-consuming, thus falling short of effectively tackling the increasing complexity of requirements. With the growing significance of compliance in ensuring organizational success, there is a pressing need for a more streamlined and automated approach that can address the compliance challenges at scale. Karmel emphasized the necessity of transforming the way businesses handle compliance. RegOps can do this, providing an evolution of compliance that shifts away from manual processes towards embracing automation and cultural transformation. By learning from the adjacent discipline of DevOps, Karmel and his co-founder Travis Howard developed an automated, real-time solution to help businesses better address compliance challenges, regardless of their size.

One key factor that determines the success of a compliance solution is user experience. It is crucial to develop a system that not only provides seamless communication between machines but also ensures a positive human interaction with the compliance artifacts. By designing the system with the users in mind, the platform becomes more effective and impactful. A RegOps platform should be built around providing a good machine experience for machines to interact and a good human experience for humans to engage with compliance artifacts. The API-centric platform integrates with an organization’s existing tools to gather evidence in near real-time and automates the creation of tickets and real-time reports for any compliance gaps. The user-friendly reporting features cater to stakeholders at various levels, enabling them to trust and rely on the insights derived from the platform.

Regulatory compliance is an ongoing endeavor, and businesses must constantly adapt to changes and improvements in their fields. Thus, adopting a continuous process that facilitates constant refinement of practices is a necessity for successful compliance operations. By liberating businesses from time-consuming manual processes, automated technological solutions enable them to focus on improving their overall compliance outcomes. Karmel’s vision for RegOps revolves around a continuous, real-time compliance journey that is constantly evolving and adapting to users’ needs. RegOps can help provide continuous, scalable solutions that conquer regulatory compliance challenges by harnessing the power of automation and cultural transformation.

As the business landscape evolves, the importance of compliance cannot be understated. Organizations need to embrace new approaches, technology, and cultural shifts in order to stay ahead of the curve when it comes to meeting regulatory requirements. This entails not only adopting automated solutions but also fostering a culture that prioritizes compliance and understands its impact on both the organization and its stakeholders. Compliance can leverage  RegOps in transforming the compliance ecosystem. Karmel highlighted the fact that without this shift in approach, businesses would find themselves lagging behind as regulations and the demonstration of compliance continue to change. By promoting near real-time and near complete compliance solutions, such as the ones offered by RegOps, businesses can triumph over the ever-evolving compliance challenges.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program for 3rd Parties – 3rd Party Compliance Terms and Conditions

The 2020 Resource Guide stated, “In addition to considering a company’s due diligence on third parties, DOJ and SEC also assess whether the company has informed third parties of the company’s compliance program and commitment to ethical and lawful business practices and, where appropriate, whether it has sought assurances from third parties, through certifications and otherwise, of reciprocal commitments. These can be meaningful ways to mitigate third-party risk.”

You should incorporate appropriate compliance terms and conditions into every contract with third parties. I would suggest that you prepare a template, which can be used as a starting point for your negotiations. The advantages of such a template are several, and they include: (1) the contract language is tested against real events; (2) the contract language assists the company in managing its compliance risks; (3) the contract language fits into a series of related contracts; (4) the contract language is straight-forward to administer; and (5) the contract language helps to manage the expectations of both contracting parties regarding anti-bribery and anti-corruption.

Many do not believe they will get the third party to agree to such compliance terms and conditions. I have found that while it may not be easy, it is relatively simple to get a third party to agree to these or similar terms and conditions. One approach to take is that they are not negotiable. When faced with such a position on non-commercial terms, many third parties will not fight such a position. There is some flexibility, but the DOJ will require minimum compliance terms and conditions. But the best position I have found is that if a third party agrees with these terms and conditions, they can use that as a market differentiator.

Three key takeaways:

  1. Compliance terms and conditions are mandatory for any best practices compliance program.
  2. A key clause is a right-to-audit clause.
  3. Third parties can favor robust compliance terms and conditions as a market differentiator.
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The Hill Country Podcast

Karen Taylor on West Kerr Country Chamber of Commerce Annual Fundraiser, Shadow of the Moon

Welcome to the award-winning The Hill Country Podcast. The Texas Hill Country is one of the most beautiful places on earth. In this podcast, Hill Country resident Tom Fox visits with the people and organizations that make this the unique area of Texas. Join Tom as he explores the people, places, and activities of the Texas Hill Country. In this episode, host Tom Fox and Andrew Gay visit with Karen Taylor, Executive Director of the West Kerr County Chamber of Commerce, about their upcoming annual fundraiser, the Shadow of the Moon.

 Key Highlights

·      What is the event?

·      Sponsors and raffle items

·      Keynote Speaker-Jeff Stone

 Resources

West Kerr County Chamber of Commerce

Shadow of the Moon

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Great Women in Compliance

Maria D’Avanzo – The Chief Evangelist Officer

Welcome to the Great Women in Compliance Podcast, hosted by Mary Shirley and Lisa Fine. In today’s episode, the Great Women in Compliance podcast delves into training and learning with Maria D’Avanzo, who is the Chief Evangelist Officer for Traliant.  Prior to joining Traliant, Maria was the Chief Ethics and Compliance Officer and Chief Privacy Officer for Cushman & Wakefield.

Like Lisa, many of you may be wondering what a “Chief Evangelist Officer” does in compliance, and Maria’s role is one which is more often seen in tech companies, where there is a person who is dedicated to improving the customer experience in all areas, from product development to customer servicing, using her perspective as an E&C officer.

She shares some of what she has learned from customers and her views on trends and current issues, including the use of AI and best practices.  She also talks about her experiences in financial compliance, and may be the first podcast guest who holds NASD Series 24, 7, and 63 licenses.

You can find the Great Women in Compliance Podcast on the Compliance Podcast Network (CPN) where you can find several other resources and podcasts to keep you up to date in the Ethics and Compliance world. You can also find the GWIC podcast on Corporate Compliance Insights (CCI) where you can learn more about the podcast, stream prior episodes and catch up on Mary’s monthly column “Living Your Best Compliance Life.”

Corporate Compliance Insights is a much-appreciated sponsor and supporter of GWIC, including affiliate organization CCI Press publishing the related book; “Sending the Elevator Back Down, What We’ve Learned from Great Women in Compliance” (CCI Press, 2020). If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

If you enjoyed the book, the GWIC team would be very grateful if you would consider rating it on Goodreads and Amazon and leaving a short review.  Don’t forget to send the elevator back down by passing on your copy to someone who you think might enjoy reading it when you’re done, or if you can’t bear parting with your copy, consider it as a holiday or appreciation gift for someone in Compliance who deserves a treat.

You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.

Join the Great Women in Compliance community on LinkedIn here.

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Compliance Into the Weeds

Microsoft OFAC Enforcement Action

The award-winning, Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. In this episode, join Tom and Matt as they delve into Microsoft’s recent sanctions enforcement action with OFAC. They explore what went wrong and how to avoid costly compliance failures, from potential red flags to reseller relationships. But it’s not all doom and gloom as they discuss how Microsoft implemented three lines of defense model for sanctions compliance, setting a benchmark for the industry. With Tom and Matt going into the weeds on the importance of centralization and persistent screening technology, this podcast is a must-listen for any compliance officer looking to stay ahead of the curve. Tune in now to find out more!” 

Key Highlights 

·      Sanctions compliance case involving Microsoft

·      Microsoft’s Sanctions Compliance Model

·      Microsoft’s Sanctions Compliance Program Remediation

·      Sanctions Compliance and OFAC Guidance

·      Impact of Russia invasion on Microsoft operations

 Notable Quote:

“It’s well worth giving the case a good look. So it was, I thought, a great lesson on resellers and the way the hardware and software industry did business.”?

 Resources

Matt  on LinkedIn

Matt on Radical Compliance

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn

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Daily Compliance News

April 12, 2023 – The End of FDA Oversight 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.

Stories we are following in today’s edition of Daily Compliance News:

  • Holmes must go to prison. (WSJ)
  • Chinese financial center rocked by corruption allegations. (FT)
  • Texas judge ruling may effectively end FDA oversight. (NYT)
  • Tyson Foods struggles with corporate governance. (WSJ)
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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program for 3rd Parties – Evaluation of Due Diligence With Candice Tal

An important part of the job duties of any compliance practitioner is clearing red flags which might appear for a proposed third-party relationship during the due diligence process. Not only must all red flags be cleared, but there must also be evidence of the decision-making process to show to a regulator if one comes knocking. Around third parties, consider what risks you face in both your sales and supply chain. Suppose there is a key player several tiers down the line which creates or builds a key component or delivers a critical service. In that case, you may want to put more management around that relationship from the compliance perspective.

For anything below tier 2, you may be able to manage your risks by having your direct tier one counterpart take the lead in managing such compliance risks. But make sure that the expectation is communicated to your direct counterparty so that if the government comes knocking, you can show that you did not only contractually obligate your direct counterparty to do so but also provided them the tools and training to do so. Finally, you will need to be able to show that your direct counterpart did so.

Three key takeaways:

  1. There is no set formula for clearing red flags or the evaluation of due diligence.
  2. Know when to say enough has been done.
  3. You must “Document, Document, and Document” your evaluation of any red flags.
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SBR - Authors' Podcast

Jeffrey Hayzlett on The Hero Factor

Welcome to the Sunday Book Review, the Authors Podcast! On this episode, Tom welcomes guest Jeffrey Hayzlett, chairman of the C suite network, as they explore the idea of living a value-based life in their Sunday Book Review-Author’s Edition podcast. Jeffrey discusses his book “The Hero Factor. Jeffrey is also the founder of the Hero Club, an invite-only organization with a value-based ethos.

The podcast delves into how people can live value-based life and how businesses should put their values into practice. Jeffrey and Tom explore how it is okay to check in with these values to keep them in focus. They discuss how, even if there are bad things, lives and businesses operating from a value-based perspective can bring immense benefits.

Tune into Sunday Book Review-Author’s Edition for an exceptional conversation about how to live according to values and make great things happen. This fascinating podcast will surely bring insights, discussion, and knowledge to the forefront. Don’t miss Sunday Book Review-Author’s Edition and get an insightful look into the power of living out your values.

Key Highlights Include

·      Hero Leadership and Setting Values [02:50]

·      The Benefits of Following Your Values and Podcasting [05:43]

·      The Power of Writing and its Impact on Businesses. [08:32]

·      The Value of Membership in the Hero Club [11:25]

Notable Quotes

1.     “They’re running hero businesses. Nobody wakes up every morning as a leader and says; I can’t wait to be a hero, just like real heroes and, you know, in the world and the military and heroic acts. They don’t intend to be heroes. They’re just putting the right place, the right time.”

2.     “They have certain values, and everybody in the organization knows what they are. And as a result, they live those values every day. Walkaway values are what I like to call them. And they have things like diversity and inclusion, and they, you know, they stand for certain things matter what, that principle of it.”

3.     “Most people have heard of servant leadership, but you talk about hero leadership. Yeah. What’s hero leadership? Well, is servant leadership a part of serving others and doing it? But the hero leadership is setting a set of values that you will walk and operate with certain values, whatever those are.”

4.     “Last summer, the Business Roundtable came out with a Statement on the Purpose of a Corporation. They expanded the purpose of a corporation to include stakeholders, not just shareholders. And that was a big shift.”

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Data Driven Compliance

Aron Clymer – Using Data as a Path to Yes

Data Driven Compliance, hosted by Tom Fox, is a podcast featuring an in-depth conversation about the uses of data and data analytics in compliance programs. In this episode, host Tom Fox visits Aron Clymer, Founder and CEO of Data Clymer, who leads a full-stack data engineering firm to empower businesses to unlock the value of their data but discovers the challenge of creating a competitive advantage in the data space.

Aron Clymer spent twenty years working with enterprise software and data in Silicon Valley and corporate America. After building a data team at Salesforce, he became a professional services expert to gain experience with multiple industries. He created Data Clymer, a full-stack data engineering firm, to help businesses extract value from their data. Through data warehousing and business intelligence tools, Aron and his team can give companies access to all the data they need. By democratizing data access, Aron is helping companies create a competitive advantage and trust in their data.

Key Highlights

·      How can companies gain a competitive advantage through data?

·      What is the modern data stack, and what does it involve?

·      How can businesses make the most of their data to ensure trust and accuracy?

 Notable Quotes

1.     “What’s beautiful about a central data warehouse for any organization is it takes all of your data and puts it in a single location – so you can extract the value of all the data you have and create a competitive advantage.”

2.     “You must trust the data before it becomes valuable.”

3.     “It’s worth the effort to think it through and consistently model your data.”

4.     “Any employee in a company should be able to access data very easily.”

5.     “Data is critical for all that – data governance, data cleansing, data integrity.”

 Resources

Aron Clymer on LinkedIn

Data Clymer

 Tom Fox 

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Innovation in Compliance

Meeting Your Clients Where They Are with Barrett Mathews

Are you still relying on outdated communication methods to reach your clients and employees? If so, you might be missing out on a huge opportunity to connect and engage with them. In this episode of Innovation in Compliance, Tom Fox speaks with Dr. Barrett Matthews, a media expert who believes in meeting clients where they are and creating authentic content to increase engagement. Barrett offers valuable insights on how businesses can leverage media to expand their reach and connect with their audience.

Dr. Barrett Matthews is a media expert with a diverse background in broadcasting, writing, and production. He has worked with industry legends like Brent Musburger and Terry Bradshaw. He eventually created a business focused on helping others embrace and leverage the power of media. Barrett now works with entrepreneurs and corporations to help them develop an authentic media presence that meets their clients where they are.

 

Barrett and Tom discuss in this episode:

  • Media has evolved and is more accessible today than ever before. Entrepreneurs and corporations need to embrace media and create content that meets their clients where they are.
  • People consume information through a variety of media forms, so businesses need to create content in multiple formats (e.g., podcasts, books, social media, etc.) to reach a wider audience.
  • Authenticity is key in creating engaging media content. Clients don’t necessarily buy the content itself, but rather the person behind it. Businesses should be open to showing their human side and not strive for perfection.
  • A documentary film can be a powerful way to showcase a business’s authenticity and human side. By delving into why a business does what it does, potential clients can connect with the business on a deeper level.
  • Deliver your content on the platforms where your target audience is present; this is essential for your business to succeed.
  • Ego-based marketing is not effective as it only promotes what makes a business owner comfortable. 
  • Build a strong brand by delivering on the promises you made to your customers, and exceeding their expectations. Your customers will refer your business to others, which can boost your brand recognition.
  • Podcasting is an excellent medium for those who are passionate about something because it’s easier to talk about a topic than to write a book on it.
  • Barrett is involved in two initiatives called iChange Nations and Media Monarch, where he aims to promote civility worldwide and teach grassroots journalism to people in different countries.
  • Barrett has a video training program available on his website about how to use media to gain more clients.

 

KEY QUOTES

“If you think that you have clients all over the place, you need to meet them where they are. Meaning that if they listen to podcasts, you better have one. If they read books, you better have one, and so forth and so on.” – Dr. Barrett Matthews

 

“People don’t necessarily buy your content as much as they buy you when it comes to the media you put out.” – Dr. Barrett Matthews

 

“Marketing is what you say about yourself to people. Your brand is what people say about you.” – Dr. Barrett Matthews

 

Resources:

Barrett Matthews on LinkedIn | Instagram | Twitter | Facebook  | Media Boss Podcast

Five Ways to Paying Clients

iChange Nations