What is the role of a corporate monitorship? Is a corporate monitorship to be feared if your company is in the middle of a Foreign Corrupt Practices Act (FCPA)? Can a monitor be used in a manner other than post-settlement, such as in a pro-active manner to help forestall a government enforcement action, fine or penalty? If your company is in the market for a monitor what are some of the indicia you should consider? Finally there are lots of rumors about the alleged exorbitant costs of monitorship? Is this an urban myth or is it based on facts? If the former, what can a company do to protect itself. I will explore these and many other questions in a new podcast series I am putting on sponsored by Affiliated Monitors, Inc. (AMI). In this podcast series, I am exploring the role of corporate monitorships in compliance and some of the key issues which companies and compliance professionals may face in dealing with monitors. I am joined in this exploration by Vincent DiCianni, founder and President of AMI. Today, we consider what is a corporate monitor?
For more information, visit Affiliated Monitors by clicking here.
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This is still a tricky area for most legally trained compliance professionals as law schools are far behind the business world in teaching these skills. Yet, not only data analysis but also the presentation of data in a visual format will be a key skill for every Chief Compliance Officer (CCO) and compliance practitioner going forward. However, if you do not possess those skills yourself, you can create a kitchen cabinet of experts, from the talent available across your company, which you can call upon to help you going forward. For the CCO, this will require extensive out of the box thinking to help you not only understand the data and analytics but think through how to present it in the most efficient manner to your leadership.
Three key takeaways:
- Look for talented and curious employees to be a part of your data science team.
- Encourage cross-mentoring to facilitate skills learning and transference.
- Moving the final mile is the most challenging.
Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I speak with Joanne Taylor, Managing Director at K2 Intelligence Financial Information Network. Joanne has worked as a Solicitor, in the financial and financial services industries. She now assists companies with financial crimes compliance and investigations. We visit on how and why companies must keep their financial services compliance robust during this time of the coronavirus health crisis.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.
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. As with many of you, we are overwhelmed with COVID-19 information. Matt and I want to bring some clarity, if not sanity to the conversation. In this podcast we continue our exploration of the parameters and impacts of COVID-19, by taking a look at one compliance tale in the time of coronavirus…according to Frank.
Some of the highlights include:
- What is being Frank in the time of COVID-19?
- Have your underlying assumptions on risk changed?
- Why must you look at risk not simply with another set of eyes but also with a different eye?
- With COVID-19, the risk is not only different but also unknown.
- Why are isolation and quarantine key?
- Why is focus on your risk management process so critical now?
- Are you revamping your engines at 40,000 ft at 480 mph?
- Stay tuned to after the outro for a special bonus piece on the phrase According to Hoyle…
Resources
Matt Kelly blog post, One Compliance Tale in the Time of COVID
In today’s edition of Daily Compliance News, all stories about Judge Stanley Sporkin:
Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. For my inaugural episode I speak with Sean Freidlin, Director of Product Marketing at SAI Global. Sean is a long-time work from home employee and he recently posted an article on how to successfully work from home. He shares some of the strategies he has learned over the years.
Check out Sean’s post on LinkedIn 4 Tips To Successfully Work From Home clicking here.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.
Tom Fox chats with Senior Managing Director of State Street Global Advisors, Rakhi Kumar, about some of her company’s initiatives to make Environmental, Social and Governance (ESG) more approachable for business leaders.
Building For The Future
Rakhi says that risk keeps evolving and that ESG is a new type of risk. ESG issues tend to be seen as intangibles and nonfinancial. However, they create long term value for the company if managed correctly. She says that State Street’s mission is to invest responsibly to enable economic prosperity and social progress. This means they manage for the long term, which is why social issues inform their strategy. “From a fiduciary perspective what we keep focus on is financial materiality and research informing our decisions … to ensure we’re focused on value creation,” Rakhi notes. “ESG is an opportunity to build for the future and create long term value.”
Improving ESG Reporting
Tom comments that State Street’s research found that less than 25% of companies they evaluated had identified, incorporated and disclosed material ESG issues into their strategy. He asks Rakhi how her company is helping to improve this. She shares State Street’s stewardship initiatives to highlight ESG in the boardroom. In addition, they are raising awareness about the need for standardization across the market. She describes the R-Factor tool which provides a framework to measure “the performance of a company’s business operations and governance as it relates to financially material ESG issues facing our company’s industry.”
Holding Companies Accountable
Rakhi says that her company will use its proxy voting power to get companies to improve their ESG performance. You can go to State Street’s website to apply for your company’s ESG score, as well as how you rank in relation to other companies.
Resources
R-Factor
In today’s edition of Daily Compliance News:
- PG&E pleads guilty to involuntary manslaughter. (NYT)
- Why middle managers are the backbone of an organization. (FT)
- Occidental closes in on settlement with Icahn. (HoustonChronicle)
- Ex-Rio Tinto worker goes to regulators. (FT)
Name any catastrophic corporate compliance failure and every root cause analysis will show there were silos which compliance could not break through. In the Boeing 737 Max design failure there was the siloed nature of the entire design, creation, training, regulatory and implementation team for the safety feature, the failed Maneuvering Characteristics Augmentation System (MCAS). At Wells Fargo, it was the siloed nature of the commercial banking group from other corporate disciplines such as legal, internal audit, human resources and even the Board of Directors. The over-riding theme was the number of compliance miss-steps that led to these disasters. While the siloed nature of these organizations processes led to a literal number of very small steps which contributed to the final disaster, it demonstrated to me even more clearly why compliance must not only have a seat the table but also be embedded throughout your organization.
Three Key Takeaways:
- Every major corporate scandal involves silos.
- Compliance should rotate senior leadership through its function.
- A CCO must be curious.
In today’s edition of Daily Compliance News:
- What do you do with workers who don’t believe there is a health crisis? (Washington Post)
- The end of ISP data caps. (Fast Company)
- WeWork Board prepares for fight. (WSJ)
- Boards need to review succession plans. (WSJ)
