The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Gabe Hidalgo, Managing Director at K2 Integrity and former CCO. Hidalgo is a native New Yorker and first generation American which form a big part of how and why he eventually found his way into compliance. After law school he worked for in-house for an insurance company and later as an insurance defense lawyer. Both experiences gave him insights into the importance of language in interpreting insurance policy coverage issues and how to marshal arguments to persuade juries at trial.
Resources
Gabe Hidalgo LinkedIn Profile
Gabe Hidalgo K2 Integrity Profile
K2 Integrity
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Know When To Hold ‘Em, Part 1
Welcome to The Wirecard Saga, literally one of the leading sources on all things Wirecard. In this series, Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors takes a look at the biggest financial scandal in post-war Germany from a variety of angles. In this ‘Know When To Hold ‘Em, Part 1’ Episode, she continues her exploration of those persons, entities and governments who have been damaged, some beyond repair, by Wirecard and the nuclear fallout from its scandal. Some of the highlights include:
- Braun demands Chubb pick up the tab
- Traina the PEP & Cheap Champers
- PR Guru reps St Markus the Innocent
- Jaffé tells shareholders ‘gimme’
- EY lawsuits pile up
- Rodl Report: EY orders Bitcoins & breathalyzers
- EY Schtums up
- Your PA doesn’t want to hear about your weekend
- Lawyer: Who knew clients could lie?
- BND: We know nothing
- Whistling in the Dark
- Bribery Charges Filed
- Go to Part II of this Episode…
Welcome to SURVIVE AND THRIVE, the newest addition to the Compliance Podcast Network. This is a podcast where we unpack compliance, crisis disasters and walk you through all the red flags which appear, and give you some lessons learned going forward. This show is hosted by the Compliance Evangelist Thomas Fox and Kortney Nordrum, Regulatory Counsel & Chief Compliance Officer, Deluxe Corporation.
Today’s episode is all about JOINT VENTURES. New sets of compliance risks arise for companies subject to the Foreign Corrupt Practices Act (FCPA). Suppose that you are given two weeks to close a joint venture, what are concrete steps you can take to protect the organization and help the joint venture do business ethically and profitably?
Key steps & takeaways discussed in the episode:
✔️ Set expectations and figure out what Compliance is exactly in charge of handling. Initiate M&A due diligence process and send DD questionnaire to the integration/JV manager.
✔️ Brief the team on the advanced timeline and reprioritize DD based on risks.
✔️Learn key steps to expect from outside counsel and what can you do in-house as well?
○ Counsel:
· Responsible for drafting agreements
· Need to advise on government approvals and registration/licensing if needed
· Deep dive into the JV candidate company and their Board/Executive leadership
· Antitrust management – with JV candidate and their counsel
· Engage a third-party diligence organization to do boots-on-the-ground diligence in foreign partner country
○ In house:
· Compliance, privacy, and risk diligence – including questionnaires, interviews, meetings, and reviewing evidence and documents provided by the JV candidate
· Training the internal JV team on what they can and can’t do throughout diligence (what they can disclose, ask about, and plan for)
· Preparing readouts and diligence summaries for the Board
✔️It always pays to be prepared. People don’t always have the resources needed. Putting together a toolkit that you can rely upon when the timing is condensed will be helpful. Having a backpack full of tools for M&A, a questionnaire already equips you to respond to a speedy timeline.
✔️Build a cadence with your business, your CEO, your executive leadership that keeps you in the loop. Be the trusted business adviser who masters compliance, ethics, and legal requirements. Make it clear that your business savvy and proactively address concerns; then it will build your credibility. Also, do not be a panic button. Do not raise a red flag unless you need to raise a red flag.
✔️ Never stop engaging in due diligence. You never stop communicating, learning, finding out, and obtaining information. Data is a two-way street. It is both inbound and outbound. Always prepare for the unexpected when the unexpected hits, what do you do because you have prepared so it’s not unexpected.
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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.
Chenthil Eswaran is the Practice Head of Enterprise Solutions at Aspire Systems and is Tom Fox’s guest this week on the Innovation in Compliance Podcast. Chenthil leads go-to market strategy, implementation, and is a thought leader in CX Transformation. Prior to his current role at Aspire, he held application development, application maintenance, and managerial positions. On this week’s show, he and Tom are talking about cloud and data storage, data security, and how compliance professionals can create a digitally fluid future for their companies.
Cloud Adoption
The pandemic caused businesses that were initially hesitant to engage in digital transformation to upgrade their operations. Chenthil tells Tom it’s a perfect time to take stock of the impact of cloud power on business applications. “We need a collaborative tech ecosystem that allows both systems and cloud applications to work in unison,” he remarks. “That way you get the ability to shift certain workloads to the cloud-based on the evolving demands. Basically, you should be able to prepare for the future without complicating the present.”
Best of Breed, All in One
There are two approaches to SAAS-based solutions: best of breed, and all-in-one. Best of breed describes a solution that is specific to certain types of work processes. Best of breed helps solutions establish a digital transformation strategy that’s decentralized, and for enterprises with multiple locations and time zones. All-in-one means looking for comprehensive solutions which cover the requirements pertaining to a specific industry. It is preferred by highly centralized enterprises, and the solutions are fully integrated.
Digitally Fluid Future
Chenthil tells Tom that the pandemic changed his company’s approach to business by essentially forcing them to change their mindset. Their focus became more on remote agility, scalability, and innovation. “We are now very keen on being prepared for a digitally fluid future which may call for 100% remote working efficiency anytime,” he says. Unless companies are aggressively going digital, they will be unable to meet the aggressive demands of their customers.
What’s Next
Tom asks Chenthil what compliance officers and executives need to think about as digital businesses evolve in the coming years. “They need to be more agile and tuned in to modern user demands,” Chenthil says. Autonomous business applications will play a big part in this as well, as this will be the future. “The decentralization of security controls will take prominence, and it will help enterprises keep remote issues undercurrent,” Chenthil tells Tom.
Resources
Chenthil Eswaran | LinkedIn
Aspire Systems
In today’s edition of Sunday Book Review:
- The President’s Daughter, by James Patterson and Bill Clinton.
- Everyone Knows Your Mother Is a Witch, by Rivka Galchen.
- The Disappearing Act, by Catherine Steadman
- Malibu Rising, by Taylor Jenkins Reid
The Kitchen follows OFAC’s amendment to TSRA license FAQs and what modifications to the US HTS did the US ITC put in place.
Welcome to a new season of Compliance Man. This season is called True or False? In this series, I am joined by my colleague Tim Khasanov-Batirov, a compliance practitioner who focuses on compliance at international markets for over 20 years. Based on his work experience at six countries as in house compliance officer Tim now consults senior managers and compliance officers globally on complex ethics and compliance matters. On top of that Tim is a co-founder of Compliance Club, an international community of practitioners. You can learn more about Tim, his Compliance Man illustrated series, a YouTube channel and request advice from him by clicking at Timur Khasanov-Batirov at Linkedin.
In each podcast, we will take on a different issue with Tim; a hot, very often a very provocative topic from the corporate’s real life agenda and find out if is it true or false. It will be a tough and very straightforward talks. We invite you to participate in these discussions by commenting each podcast and proposing topics for True or False series. The most active listeners will be invited to join us. Let’s have a sincere conversation!
Today we talk about whistleblowers.
‘Behind the scenes” corporates are confessing that:
- They do not like whistleblowers;
- Whistleblowers bring problems;
- They do not know how to protect whistleblowers.
Yet whistleblowers bring many pluses. Some are
- Whistleblowers can protect company and management from big problems;
- Whistleblowers signal on unethical and unlawful practices.
Join us for the next episode of Compliance Man: True or False? episode. If you disagree or wish to share your views on whistleblower topic please comment below. We will be glad to hear from you. Let’s have a sincere global conversation together.
As our thoughts turn towards Memorial Day and what it represents, we contemplate James Bond streaming on Amazon. Jay is now podcasting from a disclosed location, as he and Tom take a look at this week’s stories top compliance and ethics stories which caught their interest on This Week in FCPA in the Shaken Not Stirred edition.
Stories
- Big corruption trial and great lawyer gossip going on in London, as ENRC sues former lawyer and SFO. Check out these reports in Rueters, here, here and here.
- Revisiting the FCPA Top 10. Harry Cassin in the FCPA Blog.
- GDPR turns 3. Neil Hodge reflects in Complinace Week. (sub req’d) Tom and Jonathan Armstrong podcast on Life with GDPR.
- More anti-trust troubling the world of chicken prodcuers. Mike Volkov in Corruption, Crime and Compliance.
- What is the intersection of ESG and Compliance. Tom explores the role of compliance here and here. Matt Kelly weighs in on the SEC comments in Radical Compliance.
- How to lessen extortionware attacks. Rob Shavell in CCI.
- DFS fines two companies for data breachs. Paul Weiss lawyers in NYU’s Compliance and Enforcement Blog.
- Internal reporting is down. What does it portend? Andrew Burt in Navex Global’s Ethics Matters.
- Caremark Developments and the Imperative of Regular Risk Review. William Savittin the Havard Law School Forum on Corporate Governance.
- What is Bizzaro Malware? Jonathan Rusch explains in Dipping Through Geometries.
Podcasts and Events
- In this episode of The Compliance Handbook, Tom has a great discussion with Hui Chen about her thoughts on the evolution of compliance.
- Compliance Man Returns with a New Season: True or False? Tom and emerging market compliance special Tim Khasanov-Batirov are back with a new 10-episode season. In Episode 1, they explore how whistleblowers are received in emerging markets. Can’t get out of your Ivory Tower, the check out Compliance Man to learn about compliance in emerging markets. The season’s episodes will post at 7AM over the next few months. Part 1 .
- Trekking Through Compliance Returns! Tom reviews all 79 episodes of Star Trek, the Original Series beginning June 1. Each day at 3PM CT on the Compliance Podcast Network.
- Join K2 Integrity 9 June 2021 to hear a team of experts discuss the benefits of taking a holistic and programmatic approach to preventing, detecting, responding to, and remediating insider threats. Learn more and register here.
- Tom announces his latest book, The Compliance Handbook, 2nd edition is available for presale purchase. Use the code FOX25 and go here. The Compliance Handbook 2ndedition will be available in both print and eBook editions.
Tom Fox is the Voice of Compliance and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.