In today’s edition of Daily Compliance News:
- Will working from home require a cultural change? (WSJ)
- SwedBank fined $397 of AML violation. (WSJ)
- Dominoes is hiring. (Washington Post)
- Uber drives getting hammered. (Washington Post)
Author: admin
Design thinking is another innovation which can help the CCO move forward in a cutting-edge manner to make a compliance program not only more robust but also operationalize it into the fabric of the company. Such a mechanism would help to drive compliance into the operational nature of a company.
This design thinking protocol can help to create a more effective ethics and compliance training model by using employees to provide the initial input to improve its effectiveness and relevance to the front-line employees. The compliance team then implements several proposed solutions until the most operative one or ones becomes apparent. These are then rolled out companywide for better and more effective compliance training. As the entire process is documented, when the regulators, such as the DOJ or SEC, come knocking, you will have the ability to not only explain your training but also demonstrate its effectiveness.
Three key takeaways:
- Design thinking concepts are not simply for product innovation but for culture innovation.
- Design thinking works around the users’ needs rather internal operating efficiencies. For a compliance program, this means employees, third-parties and customers.
- Design thinking works to improve your compliance regime by building from the ground up rather than a legalistic top-down approach.
Welcome to a special series of Trekking Through Compliance, the podcast series inspired by my review of Star Trek, the Original Series. In this special series I am joined by another uber Star Trek maven, Megan Dougherty, co-founder of One Stone Creative. In this series we will review the new television show Picardwhich is currently streaming on CBS.
SPOILER ALERT-Although we will review each episode after it appears, we will discuss each episode in depth.
Episode 7, Nepenthe. A flashback reveals that Commodore Oh mind-melded with Jurati to convince her of the danger of synthetic life, and had her ingest a tracking device. Picard takes Soji to William Riker and Deanna Troi’s home on the planet Nepenthe. They offer Picard sanctuary, and their daughter Kestra tries to befriend Soji. Soji learns that she’s an android, and has trouble trusting anyone after Narek’s betrayal; but she tells them about her dream, and Kestra is able to learn the planet’s location from a family friend. Kestra convinces Soji to trust Picard. Meanwhile, Narissa kills Hugh and the other ex-Borg; before dying, Hugh tells Elnor that he needs a former Borg to activate the Queen’s cell and retake control of the Artifact. Elnor uses an SOS beacon Seven left Picard to call for help. La Sirena’s crew tries to get to Nepenthe but are being chased by Narek, who is following the tracker in Jurati. Feeling guilty, Jurati uses a neurotoxin to put herself in a coma and disable the tracker. La Sirena eventually reaches Nepenthe and picks up Picard and Soji.
Highlights, speculations and questions include:
1. Did Hugh have to die?
2. What did you feel during the reunion of Riker, Troi and Picard?
3. What are some of the cookies in this show?
4. Does Kestra instruct us on how to deal with grief?
5. Is Oh a Vulcan?
Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley. In episode 55 we highlight some of the hottest areas in Compliance right now – behavioral and cognitive science. At its core, Compliance is really about shaping behaviors so it is no surprise why Compliance Officers are taking an increasing interest in behavioral economics and how we can use it to better understand our key stakeholders and use the information as tools to help shape the culture of integrity in our companies. The Great Women in Compliance team loves to talk about the issues of the day so we took the opportunity to invite Penny Milner-Smyth, who has a psychology educational background and now uses research to help Compliance teams succeed, to be on the show.
Penny speaks with Mary Shirley about how we as Compliance Officers can foster psychological safety in the workplace and use that to encourage deployment of your reporting hotline. It’s critical aspiration for companies to reach – Google researchers identified psychological safety as the number one factor of importance in successful teams.
In Compliance, particularly during investigations, we often come across employees who are described as bad actors. Penny gives us the lowdown on whether people are ever easily compartmentalized into the categories of good and bad and helps us to identify factors that tend to “push” good people to do bad things.
Penny’s insights and practical advice from an organizational psychology perspective, including how you can get increased ethical behavior from your workforce just by being conscious of where on employee forms you place certain wording, is not to be missed!
See Mary’s article Why You Should Draft a Compliance Mission Statement, on Corporate Compliance Insights.
Join the Great Women in Compliance community on LinkedIn here.
One of the most significant innovations in compliance will come through the incorporation of blockchain into compliance. I see great value propositions for the compliance function. There are two specific areas where I see blockchain directly impacting the compliance profession. The first is with third-parties. The second area where blockchain provides a potential game changer is contracts, specifically around compliance terms and conditions.
This final point is operationalizing compliance. It will be interesting to see when the DOJ or SEC will begin to comment on blockchain as a part of a best practices compliance program.
Three key takeaways:
- Blockchain has great potential for the compliance profession.
- Blockchain can facilitate the third-party due diligence and update requirements.
- Blockchain can provide a clear trigger for compliance terms and conditions.
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. To that end, in this episode we take a deep dive into the need to integrate public health measures into our private enterprise operations, now and for the foreseeable future.
Some of the highlights include:
- What is some of the positive news coming out of China?
- How did China’s lockdown help slow the virus?
- Why do we need to use the time to integrate public health measures into private sector operations?
- What are some of these public health measures?
- Why are isolation and quarantine key?
- If we get it under control, how do we prevent another outbreak?
- What are some practical starting points for businesses to think through at this time?
- What should businesses be thinking about 30, 60, 90 days out?
Resources
Matt Kelly blog post, The Downslope Risks of COVID-19
In today’s edition of Daily Compliance News:
- Apple fined $1bn plus in Europe. (WSJ)
- FinCen urges caution out there. (CadwaladerCabinet)
- Worried about coronavirus? How about asbestos? (WSJ)
- The golden boy announces he’s leaving. (Slate)
Imagine that as a CCO, you could create a team which might well dramatically improve your company’s compliance and risk forecasting ability, but to do so you would be required to expose just how unreliable the professional corporate forecasters have been. Could you do so and, more importantly, would you do so? Most generally this is the predictive capability that organizations have used. However, the new “superforecasting” movement, led by Philip E. Tetlock and others, has been gaining strength to help improve this capability.
The concepts around superforecasting came of age after the intelligence failures leading up to the Iraq War. This led to the founding of the Good Judgment Project, which had as a key component a multi-year predictive tournament, which was a series of gaming exercises pitting amateurs against professional intelligence analysts. The results of the Good Judgment Project. Today, I explain its applicability to compliance.
Three key takeaways:
- Imagine you could create a team which might well dramatically improve your company’s compliance and risk forecasting ability.
- It is essential to track the prediction outcomes and provide timely feedback to improve forecasting going forward.
- Like any innovation, there must be a commitment from management on moving forward.
Jordan Domash, General Manager at Relativity, is this week’s guest on the Innovation In Compliance show. He chats with Tom Fox about his company’s Relativity Trace solution, and how to use it in your compliance program.
A Proactive Approach
Jordan describes Relativity Trace as “…a communication, surveillance, and monitoring tool built on top of the Relativity platform for compliance purposes.” Tom asks him how it can be used in a proactive approach to compliance. He responds that when potential issues need to be investigated, Relativity Trace can sift through millions of files using machine learning, search, and human review to detect risk proactively. He points out that their out of the box policies can detect issues such as bribery, corruption, and price-fixing. In addition, companies can configure their own rules based on the compliance risks that are relevant to their business. When there is a potential compliance violation, the system will proactively generate alerts.
Relativity One
Tom asks Jordan to talk about another discovery solution Relativity offers, namely Relativity One. Jordan responds that Relativity One is the SAAS version of Relativity: it’s an e-discovery tool that can help you search and review content as part of an investigation, and then create reports. Each activity that happens in Relativity leaves a permanent audit trail, which ensures that the review process is defensible.
Document Security
After you self-disclose, the first thing the government asks is if your documents are secure, Tom comments. He asks Jordan how their solution handles security. Jordan describes the tools in Relativity Trace that ensure data security, including the legal hold tool. He reiterates that every action in Relativity is audited. “It’s all exportable. It’s all filterable. It’s all searchable. So it’s very possible to take a look at your audit trail and find the relevant behavior or the whole history of the matter, the investigation or the combined process, and share that with regulators.”
Tom asks how the solution deals with false positives, in answer to which Jordan outlines various measures built into Relativity that handle this problem. “It’s not just the Machine Learning that can help you reduce false positives right away, but it’s a full collection of tools that Relativity Trace gives you to go through your process quickly… and identify risks in your business,” Jordan comments.
Resources
Relativity Trace
