Tom Fox’s guests this week are Anil Karmel and Travis Howerton, co-founders of C2 Labs. They both had leading positions in the government’s nuclear weapons program and left to found their company. They and Tom talk about “fixing the cadence mismatch” between digitally transforming heavily regulated industries and the need for compliance.
Technology vs Compliance
“Business processes in heavily regulated industries are built to standardize the way systems are built, designed, deployed, and to protect the organization,” Anil remarks. “So you know really to transform technology business processes need to also be transformed… There’s really been this need to fix this cadence mismatch between the need to be compliant and the need to modernize technology.” Travis adds that two-thirds of organizations find digital transformation challenging. Their goal at C2 Labs is to help clients modernize their business processes using technology tools while maintaining compliance and even reducing cost and risk.
RegOps in Compliance
“One of the things we’ve heavily focused on,” Anil tells Tom, “is bringing DevOps to compliance in something we’re calling regulatory operations or RegOps – where now you have the ability to transform the culture coupled with the tools to allow compliance professionals to quickly develop and deploy applications and ensure that they are continuously compliant, to simplify and automate regulatory compliance in real-time.” Travis comments on the value of automating repetitive processes: it allows humans to focus on analyzing data and making better decisions based on that data. Tom asks if they advocate data visualization. Travis responds, “Our focus is making sure that you’re capturing the right stuff in the right way and the most cost-effective way, and that it’s driving real-world risk reduction and improving compliance posture.”
Digital Transformation in Action
Tom commends C2 Labs’ philosophy of ‘digital transformation in action’. He asks the men to describe what the term means to them and why they believe in it. Anil posits that “digital transformation is going to disrupt nearly every company and organization on the planet over the next decade.” The problem, especially in highly regulated industries, is making that transformation a reality. He describes C2 Labs’ approach, which is heavily based on the automation of useful and necessary processes. “Automating stupid is not an accomplishment,” he quips. The best technology is useless if you don’t stay compliant, however. As such, the company ensures that every improvement has an audit trail and is compliant with regulatory guidelines. Anil and Travis tell Tom how their company handles audit trails, including their Time Travel feature.
The Future of Compliance
“Where do you see this journey going around digital transformation five years or maybe even 10 years down the road?” Tom asks. Anil and Travis respond that digital transformation is an inevitable part of the next few years, and how ready you are for it will determine the fate of your company. You need continuous compliance to manage digital transformation, so there must be both a cultural as well as technological transformation in the compliance space. The question to answer is, “How do we help optimize the implementation of these regulations in a way that’s repeatable, that gets the outcome that was intended without it being the drain on business?” Their compliance manifesto outlines a set of principles that can guide the discussion, they tell Tom.
Resources
C2Labs.com
Anil Karmel on LinkedIn
Travis Howerton on LinkedIn
Author: admin
In this edition of Cordery Head to Head @ Home Cordery’s Jonathan Armstrong talks to Jenny Radcliffe.
Jenny is known as “the People Hacker” and is a world-renowned expert on human behaviour. She is a go-to guest expert on the human element of security, scams and social engineering and has appeared on numerous television and radio shows, as well as online media and traditional press outlets. She was a hunter in Channel 4’s successful “HUNTED” where she performed various OSINT and undercover roles and was seconded to the special operations unit of the show.
Jenny is also the host of the award winning podcast “The Human Factor” interviewing industry leaders, bloggers, experts and fellow social engineers and con-artists about all elements of security.
They talk about how Jenny first became involved in looking at risk and the defences of an organisation. They talk about current threats including phishing and cybersecurity and the rise of criminal activity during the pandemic. They also talk about the importance of human behaviour in dealing with those threats and the need for education on current threats. In addition they chat about immediacy in business and how criminals exploit that.
You can find out more about Jenny and her work here https://humanfactorsecurity.co.uk/speaking/.
You can listen to her podcast here https://humanfactorsecurity.co.uk/podcast-2/.
The Hunted podcast Jenny and Jonathan talk about is here https://humanfactorsecurity.co.uk/episode-154-peter-bleksley/.
You can find out more about Cordery and its work here https://www.corderycompliance.com/.
You can also read about current issues in dealing with the pandemic here https://www.corderycompliance.com/category/covid19/ including our thoughts on data security issues during the pandemic here https://www.corderycompliance.com/coronavirus-covid19-and-dp/.
You can also find out more about Cordery’s experience of cybersecurity issues here https://www.corderycompliance.com/cyber-security/.
You can view more Cordery Head to Head interviews here http://bit.ly/corderytv and you can listen to audio feeds from our favourite films as a podcast here https://bit.ly/ch2hpodcast.
Welcome to a multi-part podcast series, Smart Automation for Risk Management, sponsored by Lextegrity Inc. Over the course of this series, we will be visiting with Parth Chanda, Founder and Chief Executive Officer (CEO), Andy Miller, Chief Analytics Officer, and Kara Bonitatibus, Head of Product. We will look at the Lextegrity Product Suite, take a deep dive into continuous risk monitoring, consider pre-approvals and third-party due diligence and integrations and user experience. In a special bonus episode, Chanda and I will discuss the Integrity and Analytics Collective. In Episode 1, we meet Chanda, Miller and Bonitatibus who introduce Lextegrity and the Lextegrity Product Suite.
Lextegrity began through a frustration Chanda had with the then products available to him for a compliance solution from the data analytics perspective, which would utilize data for risk management. Out of this frustration, Lextegrity was founded by subject matter experts across compliance, legal and audit disciplines with a real passion for risk management. Chanda wanted to combine more powerful tools with a world-class user experience all in a software solution. This comprised a more powerful and highly flexible automation and workflow technology integrations with other enterprise systems. So, we thought “why not build that dream software solution that we all wished when we were in house, focused software suite focused on spend and counterparty risk, including fraud, bribery, corruption, asset misappropriation, sanctions, conflicts of interest, and then addressing those risks using workflow as well as data analytics across the lifespan of those risks.”
Chanda noted that within the space of digital transformation for risk management, Lextegrity is “right at the center of that transformation. Lextegrity has a workflow solution on one side that can really manage any workflow. The common ones are a third-party due diligence, conflicts of interest gifts, and hospitality, even industry specific workflows like HCP engagements and grants management for our life sciences customers.” Chanda said the Lextegrity system also creates workflows that integrate with Human Resources (HR) and financial systems to implement more powerful controls. “We have customers who approved donations in our system. We also have customers go to SAP to initiate the payment process, which connects to the Lextegrity system so that adds another layer of control.”
Chanda went on to explain that Lextegrity has “a risk monitoring data analytics solution that connects with ERP systems, HR systems to risk score, every single transaction, together with workflows to manage those transactions visualizations and to visualize that enterprise risk as well.” The bottom line is that “data really is at the core of what we’re doing, but it’s really, even more than that. We are really trying to solve internal control problems for our customers.” All of these factors have led to the emergence of Lextegrity as one of the most powerful risk and compliance platforms in the compliance space. Chanda noted that the Securities and Exchange Commission (SEC) specifically cited Lextegrity software in Alexion Pharmaceuticals’ Foreign Corrupt Practices Act (FCPA) resolution as part of their remediation credit, “which also helped them avoid the monitor”. Further, nearly 50% of the Lextegrity customer base today has selected the company’s products after a publicly disclosed FCPA matter. Lextegrity is “consistently being turned to help remediate programs, which gives us opportunities to be in front of authorities.” Join us tomorrow where begin an exploration of continuous risk monitoring.
For more on Lextegrity, check out their website here.
Neil Lustig, CEO of GAN Integrity, brings a non-lawyer perspective to compliance, Tom Fox says. Neil spent the first half of his career working at IBM as an engineer and later in sales and marketing. “For the second half of my career – the last 15 or so years – I’ve been running young technology startups and early stage companies based out of both Silicon Valley and New York,” he tells Tom and Valerie Charles. Tom comments that the compliance industry needs someone like Neil, who can talk about using data. In this week’s show, they talk about why compliance needs to embrace data and the future outlook for the industry.
The Change is Inevitable
Tom, Valerie, and Neil discuss why compliance should embrace data and automation. “Data injected into the [compliance] space changes you and makes your team much more strategic,” Neil remarks. “The data allows you the insights to add a whole different level of value to your company.” More automation in the industry will bring more data and more connections to external data sources. Compliance is inevitably heading in that direction, Neil predicts, so leaders need to plan and hire for the change. Tom comments that compliance officers should see data as an opportunity to add value, “rather than being Dr. No from the Land of No.” Neil agrees that it’s an opportunity to change how compliance is perceived and elevate the profession.
Getting a Better Answer
“Can you tell us a little bit about how your experience working in marketing technology has helped you … be a leader of how to utilize data in compliance?” Valerie asks Neil. “It’s actually about just getting a better answer,” he replies. People want to buy outcomes, such as lower risk and higher profitability; technology happens to be the path to those outcomes. As such, Neil advocates starting with the outcome you desire and then choosing the technology that would get you those results. He explains why GAN Integrity is poised to deliver results to the compliance industry through their innovative platform, and a grand vision “to build out this platform to have process automation for every compliance process in the modern enterprise.”
Into The Future
Companies should be proactive about injecting automation into all their processes, Neil advises. Automation generates data, and that’s what the next few years will be about. He predicts that there will also be interoperability: companies will have access to and swap data with external data sources. “We as an industry have to tackle making it easier to get the world of data into a place where it can be seamlessly integrated into a workflow [or] a process,” he comments. Leaders need to start recruiting teams in preparation for “the intersection of law and data and technology.” For GAN Integrity the opportunity is in simplifying compliance so that it becomes a valued partner to businesses.
Resources
GAN Integrity
Neil Lustig on LinkedIn
In this Episode of the FCPA Compliance Report, I am joined by Quyen Truong, partner at Stroock & Stroock & Lavan. During her career in government, she worked at the Consumer Financial Protection Bureau. She joins me to talk about the CFPB under the Biden Administration. Highlights of this podcast include:
- What is the CFPB? What does it regulate?
- What is the likely impact of Rohit Chopra to head the CFPB?
- What will he need to do to rebuild the morale of the CFPB?
- What do you see as the direction by the CFPB in regulation and enforcement?
- Any new policy initiatives or directives?
- What is the interaction between the CFPB and the states? How might that change under the Biden Administration?
In today’s edition of Sunday Book Review:
- The Missing American by Kwei Quartey
- The Widows of Malabar Hill by Sujata Massey
- Three Hours in Paris by Cara Black
- Ghost of the Bamboo Road by Susan Spahn
Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network. In this episode, Ronnie talks about the Learnings and Entertainment creative process. Some of the areas we explore are:
- Discovery & Info Gathering: It’s always first and foremost about focusing on what’s true.
- How are we inspired to of creative ways to use the messaging?
- Examples of Speak Up Content
- We tend to pull from creative devices we use in our everyday lives
- Our Process
- Discovery & Information Gathering
- Client review, feedback and approval
Resources:
Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)
Learnings & Entertainments (Website)
60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.
Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.
Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.
Tales from the Hotline – check out some samples.