Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to 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.
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In this episode of Corruption, Crime and Compliance, Michael Volkov delves into the SEC’s groundbreaking adoption of robust cybersecurity disclosure rules. This pivotal change marks a significant shift in the compliance landscape, requiring public companies to not only disclose cybersecurity incidents but also unveil their governance policies and practices.
You’ll hear him discuss:
- The SEC’s adoption of new cybersecurity disclosure rules, a process spanning over a year, comes as a transformative step in the regulatory landscape.
- One of the most noteworthy changes is the requirement for companies to file Form 8-K to disclose material cybersecurity incidents within four business days of determining materiality.
- This significant change allows for a more measured assessment of materiality before disclosure, a departure from the previous trigger of four days from becoming aware of the incident.
- Alongside incident disclosure, the new rules mandate that all public companies include comprehensive cybersecurity risk management and governance disclosures in their annual Form 10-K filings. This move underscores the necessity for companies to integrate cybersecurity into their broader enterprise risk management processes.
- Companies are required to disclose the board committees or subcommittees responsible for cybersecurity oversight, outlining their processes for monitoring cybersecurity risks and reporting incidents.
- The reach of these rules extends to third-party information systems, including those of vendors and suppliers. This amplifies the importance of thorough due diligence in assessing the information security systems and risks of external partners.
KEY QUOTES:
“You can’t just sit on an incident and not make a determination, analyze it, and delay, delay as a way to avoid that materiality determination.” – Michael Volkov
“The SEC expects companies to analyze qualitative factors when assessing materiality, including harm to reputation, customer and vendor supply relationships, and the impact of regulatory actions and civil litigation.” – Michael Vokov
“Additionally, companies have to go even more comprehensive in their disclosures to …describe management procedures and practices for assessing and mitigating cybersecurity risks.” – Michael Volkov
Resources
In the Sunday Book Review, I consider books that would interest the compliance professional, the business executive or anyone who might be curious. It could be books about business, compliance, history, leadership, current events or anything else that might interest me. In today’s edition of the Sunday Book Review, I continue my summer exploration of books on crime. Today, look at some of the top books on auditing, both for the audit professional and the compliance professional.
· A History of America in 10 Strikes by Erik Loomis
· From the Folks Who Brought You This Weekend by Priscilla Murolo and A.B. Chitty
· Stayin’Alive by Jefferson Cowie
· Working by Studs Terkel
Welcome to the Kerrville Weekly News Roundup. Each week, veteran podcaster Tom Fox and his colleagues Andrew Gay and Gilbert Paiz get together to go over a couple of their favorite stories from the past week from Kerrville and the greater Hill Country. Sit back, enjoy a cup of morning coffee and listen in to get a wrap up of the Kerrville Weekly News. We each consider two of our favorite stories and talk about the upcoming weekend’s events which will enjoy or participate in this weekend.
In this episode, Tom, Gilbert and Andrew discuss the following stories which caught their attention over the past week.
· Tom discusses the resignation of Kerrville Tax Assessor Collector as head of Kerr County elections due to Kerr Country moving to hand counting of ballots and the lack of a country budget vote by County Commissioners. Tom talks about the Labor Day Walk for the Kerrville Nature Center. Andrew shouts out to the upcoming Sept. 11 Stairmasters Challenge to honor those who died on 9/11.
· Andrew discusses the Kerr County Area Youth Leadership Academy and time is short for apply and the Texas Hill Country Astronomers upcoming meeting.
· Gilbert about difficulties in county water rationing. He also the state of Texas site to reclaim lost or unused property. He talks about the Saturday swap event at the Youth Center.
Resources
Tom Fox on LinkedIn
Gilbert Paiz on LinkedIn
Andrew Gay on LinkedIn
Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.
· 280K Euros seized from MEP son’s apartment. (TVP World)
· Businesses need Chinese predictability. (NYT)
· Gensler unleased regulatory blitz. (FT)
· Goldman Sanctioned for ephemeral messaging compliance failures. (WSJ)
· China crackdowns rips through health care industry corruption. (FT)
· Switzerland unveils money-laundering crackdown. (FT)
· 3M settles FCPA action. (WSJ)
· Imprisoned Kazakh tycoon may be released. (RFE/RL)
· Do you really need incentives to operate safely? (Reuters)
You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.
Connect with Tom
In today’s fast-paced world, where work-life balance often feels like an elusive dream, mindfulness emerges as a beacon of hope. In this episode of Career Can Do, Mary Ann Faremouth welcomes guest Lisa Marree to discover the transformative power of mindfulness, especially in the context of the modern work environment. An author, researcher, and health visionary, Lisa has dedicated her life to helping corporate leaders, heart-centered entrepreneurs, and professionals harness their potential by developing a fortified mindset. Lisa and Mary Ann explore the nuanced relationship between brain health and mental well-being, and why it’s crucial to focus on the former to achieve the latter.
Lisa shares her incredible journey of resilience and inspiration. As an abused child, her innate curiosity about the human brain’s capacity for change drove her from Western medicine to holistic health and neuroscience. This transition underscores the deep interconnection between physical and mental well-being and highlights the potential within us all to reinvent ourselves.
The brain, our biological supercomputer, is central to our mental well-being. Focusing on brain health is not just about discussing mental health and illness, Lisa points out. Instead, it’s about understanding how our mind functions and the steps we can take to nourish it. By optimizing our brain’s health, we inadvertently boost our mental resilience and overall happiness.
In a world inundated with information and digital distractions, it is more important than ever to be mindful. Lisa discusses how basic techniques such as breath work and gratitude can help us avoid digital dementia and information overload. If we integrate these practices into our workplaces, we can improve communication, foster collaboration, and develop better leadership skills. The new world of work requires more than just professional expertise. Lisa emphasizes the value of self-reflection, setting tangible goals, and cultivating a spirit of curiosity. These traits, combined with a mindful approach, can help us find a harmonious balance between our personal and professional lives, leading to unprecedented levels of success and fulfillment.
Resources
Delve into the heart of the Texas Hill Country with “Hill Country Canvas,” a podcast that paints 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.
Welcome to this episode of the Hill Country Artists Podcast, hosted by Tom Fox. In this episode, we had the pleasure of chatting with the talented artist Holly White-Gehrt. Holly’s passion for nature and observation shines through her representational and observational art. Today, we delve into her artistic journey, her love for teaching, and the unique experience offered by the Hill Country Atelier. So grab a cup of coffee and join us as we explore the world of art and nature!
One of the highlights of our conversation with Holly was her involvement with the Hill Country Atelier. This workshop and art studio aims to reintroduce certain skills, such as drawing, that have been overlooked in modern art education. Holly teaches classical realism at the Atelier, attracting students from Kerrville, San Antonio, Fredericksburg, Medina, and even ConCan. It’s incredible to see the passion for art spreading across the Hill Country!
In a world where modernism has often overshadowed traditional art skills, atelier training offers a refreshing approach. Holly, through the Hill Country Atelier, not only imparts technical skills but also emphasizes the importance of truly seeing and having a passion for art. This comprehensive training equips students with skills that are not typically taught in colleges and universities, such as the art of drawing. Holly shares a personal story about starting over and spending for four years at the Georgetown and the Aristides Ateliers in Seattle. It’s a testament to the dedication and commitment required to master these timeless skills. Her primary subject is the figure, meaning people and portraits. She also does still life.
Holly shared some exciting news about the expansion of the Atelier program and its move into a new space in downtown Kerrville. Situated near the water, this serene and beautiful environment is sure to inspire creativity and provide an ideal setting for artistic exploration. We can’t wait to see the incredible art that will emerge from this new space!
Kerrville and the Hill Country boast a vibrant art scene, with many talented artists showcasing their work. Holly, along with some of her students, has held shows at the local arts foundation. This thriving community offers a platform for artists of all backgrounds to express their creativity and share their passion with the world. It’s truly inspiring to witness the artistic energy that flows through these picturesque landscapes.
Holly’s journey from studying anthropology to obtaining an art degree from the Pacific Northwest College of Art in Portland is a testament to her unwavering passion for art. After working at Intel, Holly decided to pursue her artistic endeavors full-time. Her love for nature and observation shines through her representational art, capturing the beauty and intricacies of the world around us. With her studio located in Kerrville, Holly creates art that moves her and occasionally takes commissions.
During our conversation, Holly emphasized the importance of art for young children and teenagers. Encouraging young children to explore art allows them to tap into their creativity and develop a love for self-expression. As teenagers, they can delve deeper into more disciplined art forms, honing their skills and discovering their artistic voice. Art is a powerful tool for personal growth and development, and Holly’s passion for teaching shines through as she shares this invaluable advice.
Our conversation with Holly White-Gehrt was truly enlightening, showcasing her passion for art and nature. Through the Hill Country Atelier, Holly and her students are reviving traditional art skills and creating a thriving art scene in Kerrville and the Hill Country. Whether you’re a seasoned artist or just starting your artistic journey, the intersection of art and nature offers endless possibilities for self-expression and growth. So go out there, explore, and let your creativity flow!
Always remember that art requires not just the mind, but also the heart and soul. Embrace your passion, embrace the beauty of nature, and let your art tell your story.
Resources
Holly White-Gehrt on LinkedIn
What happens when two top compliance commentators get together? They talk about compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode! In this episode, Tom and Kristy take on a wide variety of compliance topics, including a visit by a Florida man.
In the world of business, compliance and investigation protocols play a crucial role in ensuring fairness, consistency, and institutional justice. Organizations need to establish robust frameworks to handle incidents effectively and mitigate risks. In this episode of 2 Gurus Talk Compliance, we discuss several key factors impacting the enhancement of compliance and investigation protocols for organizations, including the need for standardization and rigor in investigation protocols, a perspective rooted in his belief in the importance of a culture of compliance within organizations. Kristy takes the lead in highlighting the value of consistency and standards in investigation protocols for ensuring institutional justice and fairness. Join them as they delve deeper into this topic on this episode of the 2 Gurus Talk Compliance podcast.
Highlights Include:
- ISO standards for internal investigations. (FCPA Blog)
- Tom releases a new book. (Amazon)
- The Spanish Kiss. (ESPN)
- How to develop a culture of compliance. (Compliance and Enforcement Blog)
- The first 100 days. (CCI)
- Has China outlawed due diligence? (FCPA Blog)
- 3M Settles U.S. Probe Over Tourist Trips for China Officials (FCPA Blog)
- You Can Now Make ChatGPT Work Specifically for Your Company. Here’s How (Inc.)
- You’ve Heard of Quiet Quitting. Now Companies are Quiet Cutting (WSJ)
- Fentanyl found in cookie jar during a traffic stop in Florida, man arrested (WFLA Florida)
Resources
Kristy Grant-Hart on LinkedIn
Tom
What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT? These questions are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, this podcast will look at how AI will impact compliance programs into the next decade and beyond. If you want to find out why the future is now, join Tom Fox on this journey to the frontiers of AI.
Welcome back to another exciting episode of our podcast, where we delve into the fascinating world of compliance and artificial intelligence (AI). Today I am joined by Jonathan Armstrong from Cordery Compliance to discuss how regulators in the EU are looking at AI.
Regulators in the EU are taking action to address the use of artificial intelligence (AI) and generative AI. A recent case involving Google’s AI tool, Bard, being temporarily suspended in the EU highlights the need for regulation and compliance in this rapidly evolving field. Concerns are raised about data and privacy, as generative AI uses large amounts of data, potentially infringing copyright and processing individuals’ data without consent. It is crucial for organizations to conduct data protection impact assessments and consider GDPR obligations. Transparency and consent are also key, with Zoom’s data practices being questioned in terms of transparency and obtaining user consent. The conversation emphasizes the potential legal and financial consequences organizations face for non-compliance.
Remember, compliance professionals are the co-pilots of our businesses, guiding us through the complexities of the AI revolution. Let’s not wait too long between podcasts and continue this journey together!
Key Highlights
· Concerns with Bard
· Regulators’ Actions on AI
· Concerns over Data and Privacy in Generative AI
· Transparency and Consent in Zoom’s Data Practices
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 their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.
Connect with Jonathan Armstrong
Tom Fox
Today I want to consider a burgeoning imbroglio in the UK involving Nigel Farage. While you might not think of Farage as a candidate for the FCPA Compliance Blog, it turns out that his current banking situation has some very interesting data privacy issues, shedding light on the data protection risks faced by banks and the importance of compliance with GDPR regulations. So in this blog post, we will explore the lessons learned from this incident and provide practical advice for financial institutions to ensure the security and privacy of customer information.
The recent episode surrounding Nigel Farage’s banking situation has sparked concerns about data protection and compliance within the banking industry. Farage, a prominent figure in the Brexit movement, had his bank account with Coutts, a high-end bank owned by NatWest, closed and was offered an account with another associated bank. The alleged reason was that he did not have a high enough net worth to merit the account with Coutts. It turned out the real reason was his right-wing politics, particularly around leading the charge for Brexit.
NatWest then compounded its problem by leaking a story to the BBC, that Farage had been dropped because, as reported in the Guardian, the CEO of NatWest, Dame Alison Rose had been the source of the leak to the BBC of this false information. All of this raised concerns about a potential data breach. Coutts had closed his account after lengthy discussions over the reputational risk that his political views posed for the bank.
Rose tried to apologize to Farage but as the New York Times reported, “The apology and a promise to review the bank’s policies were not enough to ease the pressure on Ms. Rose. Reports late Tuesday that the government, which has a 39 percent stake in the bank, was “significantly concerned” about Ms. Rose’s leadership seemed to seal her fate. Before dawn, the bank announced her immediate departure” in late July. Peter Flavel, the boss of its private bank, Coutts was also sent packing.
From the regulatory, data privacy and GDPR responses, NatWest is in severe trouble. Not only had the Bank violated its own data privacy regulations in providing the information to the now former CEO but it also released that same information to the BBC. The consequences of non-compliance with GDPR regulations can be severe, particularly in regulated industries like financial services. Banks may face potential violations and internal policy breaches, which could lead to legal action and impact their banking license and fit and proper provisions. CEOs can be held liable for consent and connivance in data protection cases, emphasizing the importance of understanding data protection laws and potential criminal offenses associated with them.
The controversy surrounding Nigel Farage’s banking situation serves as a wake-up call for the banking industry to prioritize data protection and compliance. Financial institutions cannot afford to overlook these issues, as the consequences in the era of GDPR can be significant. It is crucial to establish proper policies and procedures, provide training and education for top-level management, and ensure a compliance culture is embedded throughout the organization.
There are multiple lessons to be learned from this controversy and several key takeaways that can help banks navigate the complexities of data protection and compliance:
1.Be cautious with written communication: The incident underscores the importance of being mindful of what is written in emails, as subject access requests can expose them. Consider whether a controversial email would be better discussed through a phone call or read aloud before sending.
2. Learn from previous compliance issues: NatWest had previous issues with data protection compliance, leading to the resignation of CEO Dame Allison Rose. This highlights the need for organizations to build a compliance culture at all levels, including those in top positions.
3. Allocate resources for subject access requests: The bank’s CFO has provided extra resources to handle subject access requests, as the cost of non-compliance is usually higher than the cost of compliance. It is estimated that it takes a six-figure sum for a bank to respond to a subject access request.
4. Scrutinize politically exposed persons and connections to Russian individuals: Financial institutions have an obligation to carefully scrutinize politically exposed persons and individuals with connections to Russian individuals. Balancing legitimate activities with obeying the law is crucial.
This affair provides valuable insights into the importance of data protection and compliance in the banking industry. The Farage controversy serves as a reminder that the security and privacy of customer information should be paramount for financial institutions. By learning from past incidents, allocating resources for subject access requests, and adhering to GDPR obligations, banks can safeguard their reputation, avoid legal repercussions, and build trust with their customers.