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Compliance Into the Weeds

CPA In America-the ComEd Bribery Action


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. In this episode Matt Kelly and Tom Fox take a look the recent domestic bribery and corruption enforcement action involving ComEd, a subsidiary of energy giant Exelon Corp. and the largest utility in the state of Illinois, agreeing to pay $200 million to settle federal corruption charges that also involve one of the state’s most powerful politicians.
Some of the highlights include:

  • Compliance practitioners need to remember domestic bribery and corruption as well as international.
  • The bribes were offering lucrative lobbying contracts and no-show jobs to associates of Illinois House Speaker Michael Madigan.
  • How did compliance save the day for ComEd?
  • What about the Board of ComEd and Exelon?
  • Is there a real commitment from the top?

 Resources
See Matt’s blog post, ComEd Pays $200 Million on Domestic Bribery on Radical Compliance.

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Daily Compliance News

July 22, 2020-the Supply Chain edition


In today’s edition of Daily Compliance News:

  • Tapestry CEO forced to resign. (NYT)
  • CFTC Chair pushes to finalize Dodd-Frank rules. (WSJ)
  • Supply chain vulnerabilities. (WSJ)
  • Apple and sustainability. (WaPo)
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The Compliance Life

Scott Sullivan – What does a CCO want for and from their team?


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 Scott Sullivan, the Chief Integrity and Compliance Officer at Newmont Mining.
Scott Sullivan is a versatile and innovative governance, risk, compliance, ethics and legal executive with significant experience advising C-suite leaders and Boards of Directors in a global enterprise in a wide array of sensitive, high profile subject matter areas. He has extensive leadership in designing, implementing and enhancing world-class programs and favorably resolving regulatory crises for multinationals. He has managed ethics and compliance for a $5B global Fortune 500 corporation, directing a Business Integrity & Compliance function impacting 20,000 employees in over 55 countries with over 100 legal entities.
In this Episode 3, we consider how a CCO can complement their own skills with their team. Some of the skills sets Sullivan sees needed for 2020 and beyond include, Project Management, data analytics, communications & marketing, plus legal. Sullivan lists his 4 top leadership lessons for leading a compliance team.

  1. People First – Empower Them to Lead.
  2. Roll up your sleeves – don’t be afraid to dive in.
  3. Manage the Chaos to Thrive not just Survive.
  4. Trust your gut and instincts – judgmental vs. statistical sampling.
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Compliance and Coronavirus

Jeff Matthews on Fraud Risk During Covid-19


Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. In this episode, I visit Jeff Matthews, a partner at StoneTurn. He brings over 20 years of experience in financial investigations, forensic accounting and litigation support. He has served as a financial expert in corruption and white-collar criminal cases, as well as multi-jurisdictional business disputes, testifying in multiple civil and criminal matters at the state and federal levels. His clients include the nation’s top law firms, Fortune 100 legal departments and government investigative agencies.
We discuss how corporate fraud risks have changed during the age of Coronavirus and the economic dislocation, how companies need to update their fraud risk assessments and what fraud examiners should do to help in meeting the new challenges of fraud risk in the age of Coronavirus.
For more information on Jeff Matthews, check out his profile on the StoneTurn website here.
For more information on Matthews book Holding Accountants Accountable, check it out on Amazon.com.

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Innovation in Compliance

The Economic Value of Convenience with Greg Dickinson


 
CEO of Omedym, Greg Dickinson joins Tom Fox in this week’s show to discuss his book, The Convenience Economy: B2B: Adapt Now or Pay the Price. They discuss an interesting equation about the value of convenience, and why giving convenience equals gaining control.
 

 
The Cost of Inconvenience
Tom asks Greg to explain his equation, Friction = Frustration = Cost. Greg responds that if your process impedes your customer’s buyer journey, then that friction will cause them to feel frustration, which will ultimately cost you. He gives examples of B2B processes that, while developed to help a company flow, actually frustrate the customer. Times have changed, and customers are now independent. If your process is friction-rich, Greg says, customers will go someplace else. “If you have developed all your processes to deal with them in a way that is built on what you want – and it has no consideration for them, for their journey, for their experience – then you have really harmed your ecosystem… If we can give convenience, we gain control.”
People Want to Watch
Greg points out that COVID-19 has accelerated some of the areas discussed in his book. Companies now must rethink how to onboard suppliers: he recommends smart watchable assets. “When people want to learn, understand, discover and comprehend something that they have to use, they want to watch,” Greg remarks. “You can onboard and get your third parties embracing your policy if you can communicate with a watchable asset.” He explains why supplier enablement should now include “cost plus convenience plus enablement, plus being able to sustain when something happens.”
Push vs Consume
Tom asks Greg about the push vs consume models. Greg explains the difference between the two approaches and why people want to consume information nowadays, not have it pushed at them. 
Resources
Greg Dickinson on LinkedIn
Omedym.com
The Convenience Economy: B2B: Adapt Now or Pay the Price

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Daily Compliance News

July 21, 2020-the COI edition


In today’s edition of Daily Compliance News:

  • Did a COI cost Softbank $700? (WSJ)
  • New wave of mergers here? (NYT)
  • ComEd to pay $200MM for domestic bribery? (RadicalCompliance)
  • Class action filed against Cognizant BOD. (EconomicTimes)
Categories
31 Days to More Effective Compliance Programs

Third-party risk management ROI


One area that has bedeviled CCOs and compliance practitioners is how to determine the ROI for your compliance program regarding third-parties. While it is still clear that third-parties are the greatest risk in FCPA enforcement actions, senior management often wants to know what is the monetary benefit to the company for this type of risk management.
When you couple the request for ROI with the 2020 Update, it may seem like a doubly daunting task. However, the requirement for operationalization of your compliance program actually lends itself to formulating ROI around the risk management of third-parties. This is because if you move third-party compliance into the organization as a business process, with a technological solution, the ROI becomes not only clearer but easier to calculate going forward.
Three key takeaways:

  1. Why is it important to demonstrate ROI on your third-party risk management program?
  2. Determining ROI helps to demonstrate operationalizing your compliance program.
  3. Determining third-party management program ROI can help to tear down compliance siloes.
Categories
FCPA Compliance Report

Wirecard-a podcast series on the scandal, with Mikhail Reider-Gordon, Part 1-Introduction


In the Episode, I am joined by Mikhail Reider-Gordon, Managing Director of Institutional Ethics & Integrity at Affiliated Monitors.  Mikhail’s areas of expertise include technology, privacy, cybersecurity, IP and accountability in artificial intelligence; the global anti-corruption and anti-money laundering regimes; media & entertainment; biotech and the life sciences; the public sector and international law.  She is accustomed to working on extremely sensitive and high-profile matters, both nationally and internationally. In this episode, we begin a multipart series on the Wirecard accounting fraud.
Some of the highlights include:

  1. How long was Wirecard been under scrutiny?
  2. What was the role of BaFin in this disaster?
  3. What does this mean for Germany Inc?
  4. Why didn’t the regulators step in?
  5. What about EY?
  6. Where are we headed in the Wirecard Fraud?
Categories
Daily Compliance News

July 20, 2020-the Talk is Cheap edition


In today’s edition of Daily Compliance News:

  • Covid-19 and cyber risk. (FT)
  • The new Indian land and energy. (WaPo)
  • Beginning of the end for quarterly updates? (WSJ)
  • Talk is cheap when it comes to diversity. (WSJ)
Categories
Why a Duck

FCPA Resource Guide, 2nd Edition


From Vaudeville to the Silver Screen to the Small Screen, the Marx Brothers made an impact wherever people found them. Now Tom Fox and Mike Volkov have wedded their love of the Marx Brothers with their passion for compliance and bring them into the boardroom to help explain and explore the sometimes-chaotic world of governance, risk-management, ethics and compliance. In this episode Volkov and Fox consider the recently released FCPA Resource Guide, 2nd edition. Highlights from the podcast include:
1.     Is the 2nd edition an update or replacement?
2.     Why was it released now?
3.     What takes precedence; the 2nd Edition or the Evaluation of Corporate Compliance Programs?
4.     What is new in the 2nd Edition?
5.     What are the significant changes from the original FCPA Resource Guide?
6.     The FCPA Resource Guide is the best one volume on all things FCPA. It is a must have for every compliance professional.
Resources
Mike Volkov
Part 1-Introduction
Part 2-New Case Updates
Part 3-Updated DOJ Policies
Part 4-Legal Issues and Clarifications
Part 5-Effective Compliance Programs and Internal Controls
Tom Fox
Part 1-The New Hallmark
Part 2-FCPA Corporate Enforcement Policy
Part 3-the Accounting Provisions
Part 4-DOJ Policy and Case Law Updates
Part 5-Final Thoughts