Categories
Innovation in Compliance

Innovation in Compliance: Why Coverbase, Why Now: Native AI Speed and Evidence-Driven Third-Party Risk Management

Innovation comes in many areas, and compliance professionals need to not only be ready for it but embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovators, thinkers, and creators on the award-winning Innovation in Compliance podcast. In this episode, host Tom welcomes Coverbase newcomers Brian Shaw (GTM leader) and Constantine Malaxos (Head of Alliances) to discuss why they joined in 2026 and what is changing in third-party risk management (TPRM).

They talk about Coverbase’s “native AI” technology, rapid innovation, and client impact—moving teams from document chasing and backlogs to faster, evidence-backed risk decisions—while complementing existing procurement, contract, and risk systems with time-to-value in weeks. They discuss persistent program pressures such as too many third parties, too few analysts, demand for immediate answers, and the need to separate signal from noise using evidence, not questionnaires, to identify gaps against client-specific requirements. Topics include disclosure-driven “need for speed,” SBOM analysis, continuous monitoring for fast-changing AI risks, and advice to run a proof of concept, avoid “AI-ish” tools, choose trusted partners, and start with the highest-friction hotspot.

Key highlights:

  • Why They Joined Coverbase
  • Why TPRM Matters Now
  • Native AI vs AI-ish
  • ROI and Executive Buy-In
  • Disclosures and Risk Visibility
  • Managing Risk Continuously

Resources:

Brian Shaw on LinkedIn

Constantine Malaxos on LinkedIn

Coverbase

 Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

My first work of general non-fiction is now out: Deluge Before Dawn, the story of the 2025 flood in Kerr County, Texas, which killed 119 people and devastated a county. It is a story of tragedy, heartbreak, survival, and resilience.

It is available on the following sites:

Amazon.com

Stoney Creek Publishing

Barnes and Noble

Texas A&M University Press

Bookshop.org

Google.Books

Walmart

Categories
Daily Compliance News

Daily Compliance News: November 3, 2026, The Too Corrupt for Even Trump 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 in to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we cover four stories from the business world, compliance, ethics, risk management, leadership, or general interest for compliance professionals.

Top stories include:

  • CREW continues tracking government corruption. (FT)
  • Former BizJet manager pleads guilty in FCPA case. (Newson6)
  • Habba $50MM contract too corrupt for even Trump. (Reuters)
  • Binance reopens, what is next? (NYT)

My first work of general non-fiction is now out: Deluge Before Dawn, the story of the 2025 flood in Kerr County, Texas, which killed 119 people and devastated a county. It is a story of tragedy, heartbreak, survival, and resilience.

It is available on the following sites:

Amazon.com

Stoney Creek Publishing

Barnes and Noble

Texas A&M University Press

Bookshop.org

Google.Books

Walmart

Categories
Everything Compliance - Shout Outs and Rants

Everything Compliance: Shout Outs and Rants – You Can See Everything, Netflix, Conference Scene and Renoir

Welcome to a new season of Everything Compliance – Shout Outs and Rants. We have a new host, Adam Turteltaub, and a new panelist, Rebecca Walker, joining returning regulars Jonathan Armstrong and Matt Kelly for the next iteration of Everything Compliance Shout Outs and Rants.

  • Adam Turteltaub shouts out to and rants about the documentary You Can See Everything about Elizabeth Holmes.
  • Rebecca Walker shouts out the compliance conference she recently attended and rants about coming away from those conferences feeling a little weighed down by the state of the world we inhabit.
  • Jonathan Armstrong shouts out to the Renoir and Love exhibition at the National Gallery in London.
  • Matt Kelly rants about Netflix and the pace of their releases.

Everything Compliance Shout Outs and Rants is a production of the Compliance Podcast Network.

Categories
AI Today in 5

AI Today in 5: November 3, 2026, The Unruly Summer Edition

Welcome to AI Today in 5, the newest addition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 AI stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to AI Today in 5. All from the Compliance Podcast Network. Each day, we consider five stories from the business world on compliance, ethics, risk management, leadership, or general interest in AI.

Top AI stories include:

  1. Where is AI most widely deployed in compliance? (FinTechGlobal)
  2. An unruly summer of AI. (CCI)
  3. AI visibility is vital for banks. (FinTechMagazine)
  4. How AI is used in healthcare. (LMTribune)
  5. Leadership in the age of AI. (FT)

My first work of general non-fiction is now out: Deluge Before Dawn, the story of the 2025 flood in Kerr County, Texas, which killed 119 people and devastated a county. It is a story of tragedy, heartbreak, survival, and resilience.

It is available on the following sites:

Amazon.com

Stoney Creek Publishing

Barnes and Noble

Texas A&M University Press

Bookshop.org

Google.Books

Walmart

Categories
FCPA Compliance Report

ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast Series, Anik Shah

In this episode of the FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series, Anik Shah discusses his panel, “Keeping Compliance Relevant When Enforcement Feels Uncertain: Reinforcing the Value of Ethics and Integrity in Business Operations.” Some of the issues he discusses in this podcast and his panel presentation are:

  • What happens to compliance when the regulators change their focus?
  • Fraud, Waste, and Abuse are 3 different problems, but compliance can help prevent all 3.
  • Securing key Board support for compliance initiatives.

As global enforcement priorities shift and anti-corruption risks grow more complex, staying ahead requires direct insight from those shaping, interpreting, and navigating the regulatory landscape.

Returning to Washington, DC, this December 10-11, ACI’s flagship FCPA and Global Anti-Corruption Conference brings together an unparalleled gathering of government enforcement officials, in-house compliance leaders, and top legal practitioners from around the world. Gain firsthand insights, benchmark strategies with industry peers, and walk away with practical approaches to strengthen compliance programs, manage emerging risks, and prepare for what’s next. Few events offer this depth of expertise, access, and opportunity to connect with the global anti-corruption community.

I hope you can join us. For event details, click ⁠here⁠. As an extra benefit to podcast listeners, ACI is offering a 10% discount on the ⁠registration⁠ price. Use discount code D10-999-CPN27 to apply your discount.

The Compliance Podcast Network produces the ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series. ACI sponsors this series.

Categories
Blog

Anthropic’s IPO: Top 10 Corporate Compliance Risks, Part II

What does it take to build an effective compliance program around an AI business? In Part I of this series, Tom Fox examined the first five of 10 key risks for compliance professionals identified in Anthropic’s IPO disclosures: AI safety and autonomy, regulatory enforcement, data privacy and cybersecurity, intellectual property, and export controls. Each raises a practical question for CCOs and boards: can management demonstrate that its governance and controls are effective as the technology advances?

The remaining five risks extend that inquiry across the enterprise. Third-party dependencies, bribery and corruption, financial reporting, board oversight, and product representations are familiar responsibilities for compliance professionals. In an AI business, however, those responsibilities must account for powerful commercial partners, rapid international expansion, complex infrastructure dependencies, and claims about technology whose performance can be difficult to validate.

This is where compliance must be embedded in business decisions. Due diligence must inform partner selection. Disclosure controls must support investor communications. Product claims must rest on evidence. Board reporting must give directors enough independent information to challenge management and require corrective action.

6. Third-party risk, strategic partnerships, and supply-chain dependencies

The disclosed risk: Anthropic identifies substantial dependencies involving computing infrastructure, cloud providers, strategic partners, vendors, and commercial intermediaries.

The compliance exposure: Critical third parties may create cybersecurity, data protection, sanctions, operational resilience, concentration, and regulatory compliance risks. A control failure at a cloud provider or commercial partner can become an enterprise-level compliance incident.

The CCO response: Apply risk-based third-party due diligence, contractual control requirements, audit rights, continuous monitoring, concentration-risk assessments, and exit planning for critical suppliers.

The Board question: Which third-party relationships could materially impair the company’s ability to operate lawfully or meet its compliance obligations if they failed?

7. Anti-bribery, corruption, and financial crime

The disclosed risk: Anthropic expressly identifies obligations under the FCPA, UK Bribery Act, anti-money laundering laws, and comparable international requirements. It acknowledges risks arising from third-party intermediaries, government interactions, lobbying, and international expansion.

The compliance exposure: Global sales and government contracting can create opportunities for improper payments, questionable intermediary compensation, conflicts of interest, and corrupt procurement activity. The company acknowledges that it may face liability for third-party misconduct even when it has not expressly authorized the conduct.

The CCO response: Implement risk-based third-party due diligence, beneficial ownership checks, government-interaction controls, transaction monitoring, gifts-and-hospitality procedures, and continuous testing of intermediary payments.

The Board question: Does the anti-corruption program cover the full network of resellers, intermediaries, agents, and other parties involved in global commercialization?

8. Financial reporting, disclosure controls, and public-company readiness

The disclosed risk: Anthropic highlights the difficulty of accurately forecasting revenues, expenses, computing requirements, and business performance. It also acknowledges that certain operational metrics depend on internal methodologies, assumptions, and systems that have not been independently verified.

The compliance exposure: Rapid growth and complex financial arrangements can create significant risks involving revenue recognition, valuation, financial reporting, internal control effectiveness, and potentially misleading investor disclosures. The transition to a public company raises expectations for disclosure controls, audit committee oversight, and Sarbanes-Oxley compliance.

The CCO response: Strengthen disclosure committees, financial control testing, management certifications, data lineage, audit trails, and review of operational metrics included in investor communications.

The Board question: Can management substantiate every material financial and nonfinancial performance metric disclosed to investors?

9. Corporate governance, board oversight, and conflicts of interest

The disclosed risk: Anthropic’s registration statement addresses its distinctive governance structure, long-term public benefit objectives, capital structure, and relationships with investors and strategic partners.

The compliance exposure: Complex governance arrangements may create tensions among shareholder interests, management incentives, public benefit commitments, safety obligations, and commercial pressures.

The CCO response: Establish explicit board-level risk ownership, documented escalation requirements, independent compliance reporting, conflict-of-interest procedures, and regular assessments of governance effectiveness.

The Board question: Does the board receive sufficient independent information to challenge management’s decisions regarding AI safety, regulatory compliance, and commercialization? For directors, the central issue is whether governance mechanisms support meaningful oversight of mission-critical risks, consistent with the principles associated with Delaware’s Caremark oversight doctrine.

10. Consumer protection, product representations, and misleading AI claims

The disclosed risk: Anthropic identifies risks involving model reliability, accuracy, safety, marketing representations, customer expectations, and consumer protection enforcement. Its financial statement disclosures also identify litigation alleging deceptive advertising concerning subscription plans, allegations the company disputes.

The compliance exposure: AI companies may face liability when representations concerning safety, capabilities, reliability, privacy, or performance exceed what testing and operational evidence can support.

This risk is particularly significant when customers rely upon AI outputs for consequential decisions or deploy AI agents with authority to act.

The CCO response: Require legal and compliance review of material AI product claims, retain supporting testing evidence, establish performance validation standards, and monitor customer complaints for indications of misleading representations.

The Board question: Do the company’s public claims about AI safety and performance have documented, independently challengeable evidence to support them?

Part II completes Tom’s compliance-focused ranking of Anthropic’s disclosures with risks six through ten. Their position on the list should not diminish the attention they receive. A failure in any one of these areas can expose weaknesses across the broader control environment. For each, he considers the disclosed risk, the compliance exposure, the CCO response, and the question directors should ask.

Across these ten risks, a common thread emerges: effective AI governance depends on the quality of the company’s underlying compliance program. Third-party oversight, reliable disclosures, independent challenge, and substantiated product claims require accountable owners, tested controls, and timely corrective action. These responsibilities extend to any business incorporating AI into its operations.

Tomorrow in Part III, Tom will translate this risk analysis into five practical lessons for CCOs and business leaders. The focus moves from identifying exposure to managing it: integrating AI into enterprise compliance, adapting traditional controls, overseeing technology dependencies, embedding compliance in product development, and giving boards evidence of effectiveness. For compliance professionals, the next step is to turn these lessons into decisions about how to approve, deploy, monitor, and control AI.

Categories
ACI FCPA Conference 2025

ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast Series, Daniel Sibille

In this episode of the FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series, Daniel Sibille discusses his panel, “The Next Generation of Risk in Brazil: Third Parties, Intermediaries, Public Procurement, Cartels, and Beyond.” Some of the issues he discusses in this podcast and his presentation are:

  • How do you design and implement solutions in this dynamic geopolitical environment?
  • What emerging compliance risks are in Brazil and across Latin America?
  • Learn DOJ expectations for compliance programs and exchange practices with peers across the region.

As global enforcement priorities shift and anti-corruption risks grow more complex, staying ahead requires direct insight from those shaping, interpreting, and navigating the regulatory landscape.

Returning to Washington, DC, this December 10-11, ACI’s flagship FCPA and Global Anti-Corruption Conference brings together an unparalleled gathering of government enforcement officials, in-house compliance leaders, and top legal practitioners from around the world. Gain firsthand insights, benchmark strategies with industry peers, and walk away with practical approaches to strengthen compliance programs, manage emerging risks, and prepare for what’s next. Few events offer this depth of expertise, access, and opportunity to connect with the global anti-corruption community.

I hope you can join us. For event details, click ⁠here⁠. As an extra benefit to podcast listeners, ACI is offering a 10% discount on the ⁠registration⁠ price. Use discount code D10-999-CPN27 to apply your discount.

The Compliance Podcast Network produces the ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series. ACI sponsors this series.

Categories
ACI FCPA Conference 2025

ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast Series, Lamia Matta

In this episode of the FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series, Lamia Matta discusses his panel, “The Compliance Crisis Simulation: Managing a High-Pressure Global Bribery Investigation From Allegation to Resolution” Some of the issues she discusses in this podcast and her presentation are:

  • Her workshop will be a compliance crisis simulation in which the audience acts as the response team managing a fast-moving global bribery investigation using live polling as new facts, data leaks, and regulator threats emerge, including privacy-law constraints in Europe or China and communications challenges from media leaks.
  • Matta hopes to hear from enforcement officials and benchmark with peers on cooperation, self-disclosure, and practical compliance challenges.

As global enforcement priorities shift and anti-corruption risks grow more complex, staying ahead requires direct insight from those shaping, interpreting, and navigating the regulatory landscape.

Returning to Washington, DC, this December 10-11, ACI’s flagship FCPA and Global Anti-Corruption Conference brings together an unparalleled gathering of government enforcement officials, in-house compliance leaders, and top legal practitioners from around the world. Gain firsthand insights, benchmark strategies with industry peers, and walk away with practical approaches to strengthen compliance programs, manage emerging risks, and prepare for what’s next. Few events offer this depth of expertise, access, and opportunity to connect with the global anti-corruption community.

I hope you can join us. For event details, click ⁠here⁠. As an extra benefit to podcast listeners, ACI is offering a 10% discount on the ⁠registration⁠ price. Use discount code D10-999-CPN27 to apply your discount.

The Compliance Podcast Network produces the ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series. ACI sponsors this series.

Categories
FCPA Compliance Report

ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast Series, Lamia Matta

In this episode of the FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series, Lamia Matta discusses his panel, “The Compliance Crisis Simulation: Managing a High-Pressure Global Bribery Investigation From Allegation to Resolution” Some of the issues she discusses in this podcast and her presentation are:

  • Her workshop will be a compliance crisis simulation in which the audience acts as the response team managing a fast-moving global bribery investigation using live polling as new facts, data leaks, and regulator threats emerge, including privacy-law constraints in Europe or China and communications challenges from media leaks.
  • Matta hopes to hear from enforcement officials and benchmark with peers on cooperation, self-disclosure, and practical compliance challenges.

As global enforcement priorities shift and anti-corruption risks grow more complex, staying ahead requires direct insight from those shaping, interpreting, and navigating the regulatory landscape.

Returning to Washington, DC, this December 10-11, ACI’s flagship FCPA and Global Anti-Corruption Conference brings together an unparalleled gathering of government enforcement officials, in-house compliance leaders, and top legal practitioners from around the world. Gain firsthand insights, benchmark strategies with industry peers, and walk away with practical approaches to strengthen compliance programs, manage emerging risks, and prepare for what’s next. Few events offer this depth of expertise, access, and opportunity to connect with the global anti-corruption community.

I hope you can join us. For event details, click ⁠here⁠. As an extra benefit to podcast listeners, ACI is offering a 10% discount on the ⁠registration⁠ price. Use discount code D10-999-CPN27 to apply your discount.

The Compliance Podcast Network produces the ACI FCPA and Global Anti-Corruption Conference 2026 Speaker Preview Podcast series. ACI sponsors this series.

Categories
AI Today in 5

AI Today in 5: November 2, 2026, The Vibration Compliance Edition

Welcome to AI Today in 5, the newest addition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 AI stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to AI Today in 5. All from the Compliance Podcast Network. Each day, we consider five stories from the business world on compliance, ethics, risk management, leadership, or general interest in AI.

Top AI stories include:

  1. Will synthetic identities fool AI? (FinTechGlobal)
  2. SEC says it is monitoring corporate AI disclosures. (Reuters)
  3. AI and vibration compliance. (JPT)
  4. AI bet on Trump. Oops. (Bloomberg)
  5. Impact of AI in the UK labor market. (FT)

My first work of general non-fiction is now out: Deluge Before Dawn, the story of the 2025 flood in Kerr County, Texas, which killed 119 people and devastated a county. It is a story of tragedy, heartbreak, survival, and resilience.

It is available on the following sites:

Amazon.com

Stoney Creek Publishing

Barnes and Noble

Texas A&M University Press

Bookshop.org

Google.Books

Walmart