In today’s edition of Daily Compliance News:
· Malaysia names new anti-corruption head. (Bloomberg)
· Former Wuhan official charged with corruption. (StraitTimes)
· SwedBank self-discloses. (WSJ)
· Boeing has new headache: coronavirus. (WSJ)
Richard Lummis is on assignment this week so I am pleased to host Alyson Van Hooser, who was recently in Houston. We sat down for a live recording about her recent LinkedIn post, “3 Gen Z Perspectives Leaders Need to Know”.
Highlights of this podcast include:
- Why are you in Houston?
- Why did you write the article?
- How is Gen Z leadership different from Boomer leadership?
- Why do leaders need to learn from stories from their people, not statistics about them?
- How does the style of Gen Z parenting different from that of Gen X (or Boomers) and why is that important to a business leader?
- Why do you advise Gen Z leaders not to roll up their eyes but to roll up their sleeves?
- Why is connecting fast so important to training and communications?
- Why are you so passionate about leadership?
Resources
Alyson’s weekly leadership blog HERE.
If your business would benefit from higher-performing leaders, check out more information about the comprehensive leadership development training Alyson does training, HERE.
If you want to reach out to Alyson directly, email alyson@vanhooser.com.
P.S. Share and tag Alyson on social — @AlysonVanHooser
We previously considered how AI can be used as a business advantage for compliance. The power of AI can extend the more traditional functions of prevention, detection and remediation. The first way is in simply the mass amount of data which could inundate a compliance practitioner. Many compliance practitioners are overwhelmed about the amount of data available to them and do not know how or even where to begin.
Patrick Taylor has said that AI allows the compliance practitioner to understand the “subtle clues in that pattern of activity that will clue me in to take a different look.” He likened it to seeing “patterns in raked leaves” which allows you to then step in and take a deeper and broader look at an issue, either through an audit or investigation. This is where compliance practitioner can step back and literally keep an eye on the big picture and longer term as opposed to just the immediate numbers and information in front of them. It may also be the best hope for finding that kind of systemic fraudulent behavior
Three key takeaways:
- Do you know what your information means?
- AI can help both the detect and prevent prongs in a best practices compliance program.
- AI can help you to see the patterns in raked leaves.
Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.In this episode of GWIC, Lisa speaks with Fatema Merchant, who is an International Trade and White Collar Defense partner at Sheppard Mullin. She is also the first hijab-wearing woman to make partner at a Washington, D.C., Am Law 100 firm.
Fatema talks about wearing the hijab in the context of how each of us expresses our identities and some common misconceptions. Many of us, women and men, may feel like our identities impact how others view our roles in meetings and investigations and Fatema speaks about her own experiences. When Fatema made partner, many South Asian, Muslim and women attorneys reached out to her and she talks about the role of mentorship in creating diverse leaders in the compliance and legal professions.
Fatema is also a member of the steering committee for Sheppard Mullin’s Organizational Integrity Group. OIG helps clients avoid potential crises by identifying and addressing threats to companies’ integrity through proactive solutions. As Lisa works in-house, Fatema turns the tables on Lisa and asks her some questions about working with outside counsel.
Join the Great Women in Compliance community on LinkedIn here.
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 we take a deep dive into recent OCC Guidance on managing 3rd party risk. Some of the highlights include:
- What was the Office of the Comptroller of the Currency, guidance published the on March 5?
- Why is 3rd party risk still a chronic issue?
- What is the role of due diligence?
- What are sustainable business models for 3rd party risk management?
- What are 4th party risks?
- What is Kelly’s Law of 3rd Party Risk Management?
- A short discussion of FINRA’s new bulletin on pandemic risk?
Resources
Matt Kelly blog post, Some Good Guidance on 3rd Party Risk
Next, we consider the four practices that create the conditions for delivering an AI solution to compliance. Using these four practices can lead to enhanced operational excellence, more efficient business processes, and a more robust compliance experience. They are: (1) developing clear, realistic use cases, (2) managing AI learning, (3) continuous Improvement and (4) thinking cognitively. By applying these practices, business leaders can full operationalize AI applications for compliance into their organizational DNA and set themselves up to reap those rewards. It is a continuous cycle. The capabilities enable employees to execute the practices, and the practices themselves exercise and strengthen the capabilities. This cycle helps companies continually adapt at developing and using AI applications that make operations more efficient and create business value through greater profitability.
Three key takeaways:
- AI is not a panacea.
- It is not simply about reading numbers, it is thinking critically.
- Continuous improvement is a key by product of using AI in compliance.
Daniel Ramsey, CEO and Co-Founder of MyOutDesk, a virtual assistant company that helps small to medium-sized businesses get leverage, is this week’s guest. He joins Tom Fox to discuss the untapped resources of virtual assistance.
Starting the Business
Tom asks Dan to recount why he founded MyOutDesk. Dan responds that he started a successful real estate practice, but soon realized that he needed more leverage in order to grow his business. However, it was hard to find detail-oriented people who could fill in his roles, so he hired a few virtual assistants to do the paperwork and was amazed at their capabilities. From there, Dan says, he asked them if they had connections to other virtual assistants and he started MyOutDesk, which now has about 1200 employees in the Philippines.
Blending and Cost Effectiveness
Dan believes in a blended work chart, where a portion of a company’s employees are US-based, and everyone else is across the globe, and that companies are going to move toward this. It’s not a question of ‘if’, but ‘when’, Dan says. Everyone in your pipeline that is doing the work of running an existing system or process can and will someday be outsourced, which cuts down on costs significantly. According to Dan, one of his employees costs one-quarter of the cost of a US-based person to employ, meaning that there is an incentive for businesses to have a virtual workforce.
Vetting and Ongoing Monitoring
Dan offers advice to business owners about the vetting process of hiring an outsourcing provider. MyOutDesk does an FBI grade background check on all their employees, as well as a medical check to ensure they don’t have any debilitating illnesses that could hinder their productivity. He adds that business owners should ensure their potential outsourcing providers have wide-scale experience and are licensed to operate in the countries where they provide their services. For ongoing monitoring of their virtual assistants and using the captured data for continuous improvement, they should invest in some task management or accountability platforms, which are inexpensive to implement and are an easy way to ‘juice’ the relationship between employer and virtual assistant.
Talent On-Demand
MyOutDesk’s solution is talent on-demand: when a client comes to them, the company does a thorough consultation about the client’s specific needs, and by the next day, the client would have someone ready to work with them. This is beneficial to entrepreneurs, small to medium-sized businesses, or any compliance officer running a large operation.
Resources
Daniel Ramsey on LinkedIn
MyOutDesk.com
Text SVP to 31996
In today’s edition of Daily Compliance News:
- Another bank, more fraudulent accounts. (NYT)
- Wells Fargo board member resigns. (NYT)
- CFPB proposes whistleblower program. (WSJ)
- Companies fighting sick pay leave during coronavirus. (Washington Post)
Next we consider the crucial capabilities which a compliance function must have to implement an AI solution. Over the next several pieces, I will use the article Using AI to Enhance Business Operations by Monideepa Tarafdar, Cynthia M. Beath as an introduction into the how the corporate compliance function can use an Artificial Intelligence (AI) program to not only enhance the compliance function but also business operations.
Generating value from AI programs is not easy for compliance professionals as there can be multiple roadblocks to successful design and implementation. The problem is, many companies which desired to benefit from AI programs failed to do so have failed to develop the necessary organizational capabilities. The authors identified five capabilities that companies need to splice into their organization’s DNA to create an effective AI program, have adapted for the compliance function.
Three key takeaways:
- What is the power of an AI application?
- What are the foundations of AI application competence?
- What are some of the roadblocks to AI competence?