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Daily Compliance News

Daily Compliance News: July 12, 2023 – The US-EU Data Sharing Agreement 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:

  • EU-US agree on data sharing pact. (NYT)
  • EU privacy advocates slam pact.  (BBC)
  • Max Schrems slams back, vows legal challenge.  (YaHooNews)
  • Challenges to data sharing pact likely.  (Reuters)
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Blog

Mastering ChatGPT: Revolutionizing Education and Compliance Training

In Part 3 of this special five-part blog series, we delve into the potential impact of ChatGPT and AI on education and compliance training. Educators and compliance professionals, this is a must-read for you! As always, I am joined in this exploration by Larry Roberts, whose extensive experience and insights will shed light on how AI-powered tools like ChatGPT can revolutionize education by improving accessibility and affordability. But that’s not all. Roberts’s story as someone who uses ChatGPT for content creation and training courses will make you feel like you are on the same journey. We will consider the challenges corporations face in aligning the AI model with their policies and procedures and how to overcome them. This article will provide valuable answers if you have grappled with how AI can enhance compliance training while ensuring ethical considerations and human control. Get ready to unlock the potential of ChatGPT and AI in education!

Roberts is a prominent figure in the AI industry and an avid educator, continuously exploring and implementing advanced technologies such as ChatGPT. With a background in IT and a deep understanding of how programming and software development work, Larry’s expertise shines through when discussing technical complexities. He is noted for his aptitude in leveraging ChatGPT as an educational tool, maximizing the application’s potential by adapting its conversational models to the user’s needs. Larry, also an effective communicator, can simplify complex concepts for individuals at different stages of the learning process.

 Leveraging ChatGPT

Embracing technology, especially artificial intelligence, holds transformative potential for the educational sector. With proper incorporation, AI models such as ChatGPT can massively streamline the content creation process, facilitating e-learning and enhancing the students’ overall learning experience. Artificial intelligence can be a comprehensive tutor, reducing the burden on human educators and making learning more interactive. With a deep training background, Larry Roberts testified to using ChatGPT for crafting speeches and expressed his vision regarding its possible utilization in fabricating in-house training materials. He believes these AI tools, provided with appropriate guidelines, can eliminate the need for subject matter experts and enable anyone to access and learn new topics in depth.

 Limitations

The idea of an AI model aligned with company-compliance policies and procedures certainly seems appealing, but it is more complex than it might appear. While AI models such as ChatGPT possess a vast range of knowledge, they lack access to proprietary information or internal methodologies of organizations. Recognizing this, organizations should know that models like ChatGPT can provide training based on best practices rather than the company’s unique operation. While ChatGPT can offer a comprehensive understanding of various compliance-related topics, inherent limitations exist due to the need for more access to company-specific processes or principles. This can be overcome but also highlights the need for a tangible human interface to orient and incorporate ChatGPT within corporate compliance specifics suitably.

 Human Element and AI

Even with the rise of AI-powered tools, the human element remains irreplaceable. It is still the humans who design, program, and oversee AI models, and it is paramount that this construction remains so. While AI models continually evolve, they can’t substitute human decision-making, ethics, and judgment abilities. The balance AI models provide with human intervention helps maintain ethical standards and prevent any untoward overstepping of bounds. This essentiality of human oversight cannot be overstated. Their common contention was that AI tools like ChatGPT are potent tools that can revolutionize various sectors. However, they will always require human guidance to navigate ethical considerations and control their capabilities. They cautioned that AI surpassing human control should be approached with wariness. They believe the relationship should be more of a collaboration where humans and AI effectively work together while avoiding over-dependence on technology.

Let us remember that we have the power to shape the future of compliance training. By harnessing the potential of ChatGPT and AI, we can create an inclusive and accessible education system that empowers corporate stakeholders to reach their full potential. The possibilities are endless, and with commitment, dedication, and an open mind, we can revolutionize compliance training and enable stakeholders from all corporate relationships to access advanced knowledge and skills like never before. Together, let’s embrace the power of AI in education and create a brighter future for all learners. Join us tomorrow when we consider how ChatGPT will transform education and compliance training.

For more information on Larry Roberts, check out Red Hat Media.

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Hill Country Authors

Hill Country Podcast: Peggy Sundberg – Cowgirl Peg & Crooze on Croozer: Blind Inspiration

Welcome to the award-winning The Hill Country Authors Podcast. In this podcast, Hill Country resident Tom Fox visits with authors who live in and write up the Texas Hill Country.

In this episode, Tom visits with children’s book author Peggy Sundberg, Cowgirl Peg. Peggy has achieved inspiring success stories through her love of writing and animals. Peggy, born and raised in Alvin, Texas, developed a love of writing and horses from a young age and had a lifelong dream of rescuing ancient horses that nobody wanted anymore. She was able to pursue her dream when she was 50, and her lifestyle changed, living in a horse trailer and a barn on a small ranch in western Colorado. Peggy had four horses and five fosters residing on the ranch and worked with a group out of Denver to foster horses. She also had a lifelong dream of writing children’s books with meaningful messages and could do this after rescuing a little horse and hearing his story. The book was about friendship and tolerance of differences in a happy way.

Peggy’s latest book, Crooze on Croozer, was not planned and was inspired by a woman who asked her to write a book about her dog. The book is about a blind blue healer dog and is told from the dog’s perspective. Peggy did research with the Texas School for the Blind to ensure she was getting the story right, and the book is meant to be a feel-good story and to inspire those with disabilities to do great things. The book is a truly Texan product, and I hope it will make kids think about what it would be like to be blind and appreciate what they can see.

Key Highlights:

  • Cowgirl Peg Adventures
  • Love of Horses
  • Crooze on Croozer
  • Rescuing Horses
  • Cowgirl Peg

Resources:

Peggy Sundberg

Cowgirl Peg

Crooze on Croozer

Tom Fox

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Compliance Into the Weeds

Compliance into the Weeds: Compliance into the Weeds Takes a Eurotrip with Compliance Man

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. Looking for some hard-hitting insights on sanctions compliance? Look no further than Compliance into the Weeds!

In this episode, co-hosts Tom Fox and Matt Kelly are joined by Compliance Man himself Tim Khasanov-Batirov. We consider how the Airbus scandal has highlighted the importance of compliance and ethics in corporate conduct in France, and the need for reliable data in ESG reporting, artificial intelligence, and third party risk management. We also discuss the challenges faced by American and European compliance professionals, and the need for Diversity, Equity and Inclusion (DEI) in creating a strong speak up culture. They discussed the EU Whistleblower Directive, which states that anonymous reports should be allowed, and the importance of clean conduct in government agencies. Compliance practitioners have an important role to play in this process, and the EU is leading the world’s discussions around ESG reporting.

Key Highlights 

·      ESG Reporting Requirements

·      AI and DEI in Compliance

·      European Compliance Challenges

·      European Compliance vs US

·      AI and Compliance in France

Resources

Matt 

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31 Days to More Effective Compliance Programs

One Month to More Effective Reporting and Investigations – Answering DOJ Questions on Confidential Reporting

What are some best practices regarding an internal reporting system? The 2012 FCPA Guidance stated, “An effective compliance program should include a mechanism for an organization’s employees and others to report suspected or actual misconduct or violations of the company’s policies on a confidential basis and without fear of retaliation.”

This was expanded in the DOJ’s 2020 Guidance, in the section entitled “D. Confidential Reporting Structure and Investigation Process,” with the following language, “Another hallmark of a well-designed compliance program is the existence of an efficient and trusted mechanism by which employees can anonymously or confidentially report allegations of a breach of the company’s code of conduct, company policies, or suspected or actual misconduct. Prosecutors should assess whether the company’s complaint-handling process includes proactive measures to create a workplace atmosphere without fear of retaliation, appropriate processes for submitting complaints, and processes to protect whistleblowers.”

Three Key Takeaways:

  1. Internal reporting systems indicate a working, operationalized compliance program.
  2. There must be a solid communication line between the people doing the investigation and those leading the remediation.
  3. Your internal reporting mechanism must be trusted.
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Compliance and AI

Mastering ChatGPT: Part 2 – ChatGPT and Ethical AI

Welcome to a special five-part podcast series on mastering ChatGPT. My special guest throughout this journey is Larry Roberts, an accomplished professional with over 25 years of multifaceted experience. Having initiated his career in the corporate training sphere, he exhibited a remarkable shift to IT, contributing greatly as a Business Intelligence Analyst. His proficiency lies in harnessing predictive analytics for inventory and sales projections, which led him to tap into the realm of AI. In 2021, Larry chose to cozy up with podcasting and content creation. His tryst with ChatGPT began in November of the same year, and he has been fully engrossed with it since then. His insights into data models, large language models, and his overall passion for AI are certain to illuminate any forum.

In this Episode 2, we look at the ethical considerations of AI models such as ChatGPT.

In the age of AI, the ethical consequences of this transformative technology present pressing concerns for developers and industry professionals alike. In this episode 2, Tom and Larry shed light on the myriad ethical issues surrounding AI, from securing data privacy and GDPR compliance to mitigating the misuse of AI tools and addressing job displacement. There is a wealth of information and best practices to guide your ethical approach to AI, ensuring transparency, user control, and adaptability in a rapidly evolving landscape. Embark on this journey with us to ensure that the power of AI is harnessed responsibly, respecting every stakeholder’s rights and privacy.

In this episode, you will be able to:

  • Discover the crucial ethical questions surrounding AI and ChatGPT.
  • Uncover hidden truths about data privacy concerns and your control options.
  • Explore the significant role of GDPR and the collective effort required for privacy.
  • Understand how to combat the misuse of AI instruments through user collaboration.
  • Learn about AI ethics and why transparency, bias evaluation, and human supervision are paramount.

Key Highlights:    

  • Data Privacy
  • AI and Disinformation
  • Human in the Loop

Resources:

Larry Roberts

Larry Roberts on LinkedIn

Red Hat Media

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Daily Compliance News

Daily Compliance News: July 11, 2023 – The A Nap a Day 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:

  • ECB governor goes on trial for corruption. (Bloomberg)
  • Napping at work is good for you. (FT)
  • Clarence Thomas accepted more gifts. (The Guardian)
  • More senior employees are mentoring younger employees. (WaPo)
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Data Driven Compliance

Data Driven Compliance: Christian Perez-Font on Law, Compliance & Data

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data Driven Compliance podcast, hosted by Tom Fox, which is a podcast featuring an in-depth conversation around the uses of data and data analytics in compliance programs. Data Driven Compliance is back with another exciting episode. The intersection of law, compliance, and data is becoming increasingly important in cross-border transactions, mergers, and acquisitions.

In this episode, Tom welcomes Christian Perez-Font for the first of two parts on using performance bonds and data analytics to guarantee these transactions and the legal requirements and nuances of different jurisdictions when conducting due diligence. They also discussed how technology changes how companies manage Latin American operations, how practitioners need to understand Excel spreadsheets, and how to share data to benchmark and extract the correct information. Christian’s background in engineering and economics has helped him incorporate data analytics, compliance, and law into a unique package. Tune in to Data Driven Compliance and stay ahead of the curve in the compliance world!

Key Highlights:

  • Law Compliance & Data
  • Data as Fuel
  • Data Analytics in M&A
  • Data Analytics in Compliance

Resources:

Christian Perez-Font on LinkedIn 

Thinkeen Legal

 Tom Fox 

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Blog

Mastering ChatGPT: Ethical Challenges of ChatGPT

In this Part 2 of a five-part blog post series, I am considering the revolution wrought by ChatGPT. Today we consider how and, more importantly, why AI developers and industry professionals need to garner insights into the ethical considerations surrounding AI and ChatGPT. With the guidance of AI expert and founder of Red Hat Media, Larry Roberts, we will delve into the complexities of AI ethics, including data privacy, misinformation, bias, and job displacement. Roberts’s extensive field knowledge and experience make him a relatable source for understanding the challenges and best practices in implementing ethical AI solutions. By addressing these ethical concerns head-on, this article will equip you with the necessary tools and knowledge to navigate the ethical landscape of AI development, ensuring responsible and informed decision-making. Say goodbye to uncertainties and us as we demystify AI ethics, paving the way for a more ethically sound AI industry.

Human in the Loop

Human in the Loop (HITL) is an interaction model involving a human operator in AI decision-making. Due to their unpredictability, HITL scenarios often occur when definitive responses are difficult for AI systems to generate without human intervention. HITL emphasizes that human input and collaboration are critical in AI development, as an AI alone may only partially account for unforeseen situations.  Larry Roberts discusses the ‘Human in the Loop’ approach extensively. He highlights examples where human intervention was necessary to prevent unforeseen outcomes, implying the indispensability of human involvement in AI usage and development. Larry reiterates that even with advances in AI technology, human input remains vital to ensure quality results and prevent unexpected consequences.

AI Ethics and Best Practices

AI ethics is the study of the ethical issues related to the development and application of AI. It includes accountability, privacy, intellectual property, discrimination, bias, and job displacement. Fostering a deeper understanding and implementation of AI ethics ensures that advancements in AI technology are a force for good, benefiting humanity as a whole.  Referencing the episode, Larry Roberts provides an in-depth discussion on AI ethics. He emphasizes that understanding the perspectives of AI developers is paramount to accurate assessment and mitigation of bias. Recognizing the issues surrounding job displacement due to AI implementation, Larry suggests the potential of AI to create new opportunities, underlining the necessity of monitoring and adapting to the evolving AI landscape.

Securing Data Privacy and GDPR Compliance

The digital revolution has brought to the fore the importance of securing data privacy and tick-marking all requirements of the General Data Protection Regulation (GDPR) across industries. The speed and sky-rocketing impact of artificial intelligence (AI) technologies necessitate special attention to these aspects. As data forms the lifeblood of AI systems, ensuring the secure handling of this data keeps prominence. Equally significant is the adherence to GDPR policies, which is a step beyond data privacy, focusing on EU citizens’ fundamental rights. Non-compliance can lead to severe penalties. Addressing these requirements is more than just about legal and ethical obligations; it’s about building trust with the end users, enhancing business reputation, and ensuring that privacy concerns or non-compliance issues do not hold back AI’s fantastic potential.

Mitigating the Misuse of AI Tools

As we consider the suitability of AI technologies for various tasks, it’s crucial to discuss the potential for misuse. With the pervasiveness of AI in our digital landscape, there’s an increasing risk of these technologies being exploited. One of the leading concerns revolves around ethical use, mainly because AI technologies like chatbots can process vast amounts of data, some of which can be sensitive or private. Consequently, the misuse of AI tools could result in a breach of privacy and security, making it significantly vital to establish preventative measures.

As we strive to achieve an increased understanding of AI ethics and best practices for implementation, let us remember that great power comes with great responsibility. By staying informed, remaining vigilant, and consistently reassessing our practices, we can pave the way for a future where AI serves as a force for good. Join us tomorrow when we consider how ChatGPT will transform compliance training.

For more information on Larry Roberts, check out Red Hat Media.

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Principled Podcast

Principled Podcast – S9 E20 – What You Measure is What Matters: Training Effectiveness at Dell

What you’ll learn on this podcast episode

Does learning actually occur as a result of ethics and compliance training, or are employees just paying lip service when they take courses? How can you tell the difference? Today, the E&C community is focused on program impact and effectiveness rather than checking boxes—in part because regulators have made it clear that E&C programs must show impact from their activities. On the season 9 finale of the Principled Podcast, Susan Divers discusses how compliance teams can ensure they’re getting the right insights to improve their programs with Kristi Kevern, the senior managing director at Dell Technologies. Listen in as Kristi shares how her team collects and analyzes data to manage better and enhance Dell’s E&C program, particularly in the training area.
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Guest: Kristi Kevern

Kristi Kevern – Grayscale

Kristi Kevern is an innovative thought leader with 20+ years of experience in internal control design, implementation, management, and assurance. At Dell Technologies, Kristi drives enterprise-wide risk management and governance activities, conceptualizes and implements global programs aimed at mitigating FCPA, AML, SOX, ESG, and other key risks, turns findings into fixes with post-investigation remediation, and experiments with AI and ML for further prevention and insights using data. Prior to Dell, Kristi served as a founding member of the Coca-Cola Company’s Ethics Office, where she investigated allegations of fraud and served as an ethics advisor to the credit union. As a former Big 4 manager at PricewaterhouseCoopers LLP, Kristi led assurance and attestation engagements for Fortune 500+ clients. Kristi is a recipient of TRACE International’s Innovation Award, and she has led Dell Technologies to an Ethisphere World’s Most Ethical Company designation 10 times. She is the membership chair of the Conference Board’s Global Business Conduct Council and a frequent speaker at conferences and universities. Kristi graduated with honors from Auburn University and is a Certified Public Accountant residing in Austin, Texas.

Host: Susan Divers

Headshot_Susan_Divers_S7E18_Principled_Podcast

Susan Divers is a senior advisor with LRN Corporation. In that capacity, Ms. Divers brings her 30+ years’ accomplishments and experience in the ethics and compliance area to LRN partners and colleagues. This expertise includes building state-of-the-art compliance programs infused with values, designing user-friendly means of engaging and informing employees, fostering an embedded culture of compliance, and substantial subject matter expertise in anti-corruption, export controls, sanctions, and other key areas of compliance.

Prior to joining LRN, Mrs. Divers served as AECOM’s Assistant General for Global Ethics and Compliance and Chief Ethics and Compliance Officer. Under her leadership, AECOM’s ethics and compliance program garnered six external awards in recognition of its effectiveness and Mrs. Divers’ thought leadership in the ethics field. In 2011, Mrs. Divers received the AECOM CEO Award of Excellence, which recognized her work in advancing the company’s ethics and compliance program.

Mrs. Divers’ background includes more than thirty years’ experience practicing law in these areas. Before joining AECOM, she worked at SAIC and Lockheed Martin in the international compliance area. Prior to that, she was a partner with the DC office of Sonnenschein, Nath, & Rosenthal. She also spent four years in London and is qualified as a Solicitor to the High Court of England and Wales, practicing in the international arena with the law firms of Theodore Goddard & Co. and Herbert Smith & Co. She also served as an attorney in the Office of the Legal Advisor at the Department of State and was a member of the U.S. delegation to the UN working on the first anti-corruption multilateral treaty initiative.

Mrs. Divers is a member of the DC Bar and a graduate of Trinity College, Washington, D.C., and the National Law Center of George Washington University. In 2011, 2012, 2013, and 2014, Ethisphere Magazine listed her as one of the “Attorneys Who Matter” in the ethics and compliance area. She is a member of the Advisory Board of the Rutgers University Center for Ethical Behavior and served as a member of the Board of Directors for the Institute for Practical Training from 2005–2008.

She resides in Northern Virginia and is a frequent speaker, writer, and commentator on ethics and compliance topics. Mrs. Divers’ most recent publication is “Balancing Best Practices and Reality in Compliance,” published by Compliance Week in February 2015. In her spare time, she mentors veterans and university students and enjoys outdoor activities.