Gene Geiger of A-LIGN joins Tom Fox on this week’s show to discuss his company’s innovative compliance management platform, A-SCEND. Gene remarks that there was a market need to drive technology in the professional services space. “What we’ve been missing is driving automation and driving workflow and driving efficiency through technology, and that’s really what A-SCEND is meant to do. It’s meant to complement the people in the audit workflow to make the job as efficient and as automated as possible,” he says.
Built For Users
“The need for technology crosses multiple compliance standards,” Gene remarks. A-SCEND is built to comply with eight compliance standards in the cybersecurity industry. In addition, Gene says, users can input their own internal standards using the custom object module. He describes various features of the platform that helps clients automate their compliance workflow, and manage compliance tasks throughout the year, rather than just for the annual audit. A unique feature of A-SCEND is its ability to de-duplicate requests across multiple compliance standards, resulting in up to a 50% decrease in workload when preparing for audits. Gene points out how these innovative features allow their clients to do anytime, anywhere audits, and how both they and their clients were able to pivot easily to remote work as a result of the COVID-19 pandemic. Tom asks how feedback is built into the platform. Gene outlines several mechanisms, including their advisory board, surveys, and their customer support system. “We are able to build an application for compliance management that really meets the needs of the users,” he says.
The Future of Strategic Compliance
Tom and Gene discuss the future of strategic compliance. Gene predicts that there will be movement towards benchmarking, AI-based review and evidence collection, and data-driven metrics.
Resources
A-lign.com
Author: admin
In today’s edition of Daily Compliance News:
- Wirecard in the Philippines. (KYC360)
- Obese politicians signal corruption. (Eurasianet)
- Fraud reimbursement in Congo. (WSJ)
- Things not looking too good at Under Armour. (WSJ)
Gene Geiger of A-LIGN joins Tom Fox on this week’s show to discuss his company’s innovative compliance management platform, A-SCEND. Gene remarks that there was a market need to drive technology in the professional services space. “What we’ve been missing is driving automation and driving workflow and driving efficiency through technology, and that’s really what A-SCEND is meant to do. It’s meant to complement the people in the audit workflow to make the job as efficient and as automated as possible,” he says.
Built For Users
“The need for technology crosses multiple compliance standards,” Gene remarks. A-SCEND is built to comply with eight compliance standards in the cybersecurity industry. In addition, Gene says, users can input their own internal standards using the custom object module. He describes various features of the platform that helps clients automate their compliance workflow, and manage compliance tasks throughout the year, rather than just for the annual audit. A unique feature of A-SCEND is its ability to de-duplicate requests across multiple compliance standards, resulting in up to a 50% decrease in workload when preparing for audits. Gene points out how these innovative features allow their clients to do anytime, anywhere audits, and how both they and their clients were able to pivot easily to remote work as a result of the COVID-19 pandemic. Tom asks how feedback is built into the platform. Gene outlines several mechanisms, including their advisory board, surveys, and their customer support system. “We are able to build an application for compliance management that really meets the needs of the users,” he says.
The Future of Strategic Compliance
Tom and Gene discuss the future of strategic compliance. Gene predicts that there will be movement towards benchmarking, AI-based review and evidence collection, and data-driven metrics.
Resources
A-lign.com
The FCPA world is littered with cases involving freight forwarders, brokers and agents in the shipping and express delivery arena. Both the DOJ and SEC have aggressively pursued third-party business relationships where bribery and corruption have been found. This is particularly true where companies are required to deliver goods into a foreign country through the assistance of a freight forwarder or express delivery service.
If you utilize the services of a third-party for as a freight forwarders, brokers and agents in the shipping and express delivery arena, that company’s actions will go a long way in determining your company’s FCPA liability. You must have a thoughtful process and document that process.
Three key takeaways:
- Express delivery services and freight forwarders present unique compliance risks.
- There must be a business justification to bring on new express delivery services or freight forwarders in high risk jurisdictions.
- Consider constructing a risk matrix in this area.
In the Episode, I am joined by Gordon Platt. Platt is an attorney, award-winning investigative journalist and filmmaker, and long-time entrepreneur and strategic consultant. His legal practice focuses on representing companies and individuals facing significant challenges in rapidly evolving sectors of the world economy. Areas of focus include: dispute resolution, fraud and internal investigations, and asset tracing and recovery. He is a member of the bar and licensed to practice in New York and Massachusetts. In this episode, we discuss Platt’s return to the full-time practice of law and how the skills he used as investigative journalist enhance his work as a white collar practitioner.
Some of the highlights include:
- What has it been like to return to the practice of law fulltime during Covid-19?
- Platt’s work as an investigative journalist.
- How did that work inform his approach to the practice of law?
- Why Platt has always found that people who attempted to dissuade him from covering something because it was of no interest always led him to become interested?
- Where and how does Platt see anti-corruption due diligence headed?
- How Platt’s practice is informed by an extensive network of relationships formed over two decades of organizing professional events and programs for investors and entrepreneurs?
For more information on Platt or his law practice, check out his firm’s website here.
In today’s edition of Sunday Book Review:
- White House Years By Henry Kissinger
- Witness to Power By John Ehrlichman
- Around the World With LBJ By James U. Cross
- A World Transformed By George H.W. Bush and Brent Scowcroft
- Wall Street Journal
- New York Times
- Financial Times
- Washington Post
One of the issues in any compliance program is the compensation paid to a third-party as FCPA exposure arises when companies pay money, either directly or indirectly, to fund bribe payments. Another area that leads to exposure from third-parties is with distributors. In a distributor relationship, the distributor purchases a product; taking risk of loss and title, at a discount from a manufacturer. The distributor resells at an uplift and that spread between purchase price and sales price is the distributor’s income. If a product is purchased at an inflated discounted rate and then sold, the difference between the purchase price and resale value could be used for corrupt purposes. Commission payments and excessive distributor discounts can be channeled to pay bribes.
The FCPA Resource Guide, 2nd edition noted that common red flags associated with third-parties include “unreasonably large discounts to third-party distributors.” When companies grant distributors uncommonly steep discounts, bribes can result either: 1) because the distributor is instructed by the company to use the excess amounts to fund corrupt payments; or 2) because the distributor pays bribes on its own, without the express direction or implicit suggestion from the company, to gain some business advantage.
Three key takeaways:
- The creation of well-thought out process which operationalizes your compliance program around distributor compensation, in a manner which documents your decision-making calculus is key.
- Require multiple levels of approval for an out of range distributor discount.
- Tracking distributor discounts globally make your company more efficient.
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 show, we discuss how to use creativity your compliance communications to have a more effective compliance program by producing a more robust Speak Up culture in your organization. The recent DOJ 2020 Update to the Evaluation of Corporate Compliance Programs stated the following: Other companies have invested in shorter, more targeted training sessions to enable employees to timely identify and raise issues to appropriate compliance, internal audit, or other risk management functions. How does Speak Up compliance training fit into this new mandate?
Some of the highlights include:
- Why is this change both significant and importantly was is the Government’s expectation? What is the difference between “shorter” and “targeted” training?
- The DOJ has acknowledged what most successful programs have known for a while. That shorter, more frequent training and communications are more effective. Most adult learning principles support this.
- Training is important, but it should be shorter, relevant and interesting.
- Comms is separate. It services a different purpose.
- To advertise where resources are.
- To drive traffic to those resources – teach people where to go.
- To remind people and reinforce resources and themes.
- “Enable employees to timely identify and raise issues”
- That is making resources accessible and easy to use
- Show up in more places – Apps, Newsletters, Intranet Posts, email signature, in the mouths of leadership
- It’s also about making people know that they are safe
- That is making resources accessible and easy to use
- Targeted is focused on making training relevant. Corporate comms can go to everyone, everywhere, all the time. Training should be tactically relevant to job function.
- Learnings and Entertainments creates short stories about specific issues so that companies can deploy those to those specific audiences.
- Broadcat makes job aids which are helpful in this regard.
- Offerings are aligned with what the DOJ is recommending in their 2020 update.
- “Hey maybe a group of comedians and improvisers have something to offer.”
- L&E’s whole business is structured around two things.
- Promoting E&C as helpful advisors and coaches.
- Promoting Speak Up culture.
- Short, Entertaining, Memorable Comms & Awareness – this is designed to raise the visibility of the issues policies and resources so they are easy to access. Show up in more places. Try to shift attitudes and behaviors over time.
- Person on the Street Campaigns – gives voice to employees. Makes it less preachy.
- Stories that shed light on the speak up process – share why things happen and the results of those things. Very specific and targeted learning.
- Talk Shows that help leaders shed light on the speak up process – build trust.
- Improv Training to help leadership encourage speak up culture.
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.
