In today’s edition of Sunday Book Review:
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In today’s edition of Daily Compliance News:
Today, I want to consider the article Strategy For and With AI by David Kiron and Michael Schrage. The authors premise is, “A company’s strategy is defined by its key performance indicators. Artificial intelligence can help determine which outcomes to measure, how to measure them, and how to prioritize them.”
Their article had several insights for the Chief Compliance Officer (CCO) or compliance practitioner who is looking to employ Artificial intelligence (AI) to help move their compliance program up a level. One of the first key insights is that it is not enough to simply have a strategy for AI. The authors stated, “Creating strategy with AI matters as much — or even more — in terms of exploring and exploiting strategic opportunity. This distinction is not semantic gamesmanship; it’s at the core of how algorithmic innovation truly works in organizations. Real-world success requires making these strategies both complementary and interdependent. Strategies for novel capabilities demand different managerial skills and emphases than strategies with them.”
This makes clear that AI does not supplant the compliance function or the compliance professional, AI complements what the compliance professional can do with the information available to them. Yet the authors believe that when it comes to machine learning, an appropriate compliance strategy is defined by the key performance indicators (KPIs) leaders choose to optimize. This means that a CCO who cannot clearly identify and justify their strategic KPI portfolios has no strategy.
The bottom line? AI plays a critical role in determining what and how compliance KPIs are measured and how best to optimize them. Optimizing carefully selected compliance KPIs becomes AI’s strategic purpose in the compliance function. Understanding the value of optimization is key to aligning and integrating strategies forand with AI and machine learning. KPIs create accountability for optimizing strategic aspirations, including compliance.
Three key takeaways:
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit this month’s sponsor Affiliated Monitors at www.affiliatedmonitors.com.
With travel bans coming to the fore, Jay worries about Spring Break while Tom heads to DisneyWorld. They take a break to consider some of the top compliance articles and stories which caught their eye this week.
Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.
In today’s edition of Daily Compliance News:
Cailyn and Amanda welcome the Founder & Chief Resilience Officer of Asfalis Advisors, Vanessa Vaughn Mathews to the show.
Listen to the episode:
EPISODE NOTES
The Department Of Justice and Securities and Exchange Commission have both made it clear that they expect companies to be more robust in their use of data analytics in compliance programs. This means using data to not only detect and prevent illegal conduct but also in the remediation prong of any best practices compliance program as well through continuous improvement. Former Deputy Assistant Attorney General Matthew Miner said in a speech that the DOJ will inquire whether compliance departments have access to internal data that could help them identify misconduct and whether compliance officers make adequate use of data analytics in their reviews of companies under investigation. Since at least 2016 in the Foreign Corrupt Practices Act (FCPA) enforcement action involving Key Energy Services, Inc., the SEC has been communicating to compliance professionals of the need for increased use of data and data analytics in any compliance program.
The new DOJ Antitrust Division released its Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations (Antitrust Guidance), was the clearest regarding this mandate when it stated, “Does the company use any type of screen, communications monitoring tool, or statistical testing designed to identify potential antitrust violations?” For the anti-corruption compliance professional, this means you need to incorporate a statistical analysis into your ongoing monitoring to see if there are any anomalies which could be indications of FCPA violations.
The bottom line is that it is not if but when you begin to incorporate corporate information into your compliance program to make your compliance program more efficient and your business process run more effectively. My suggestion is that you begin now to identify the data you have access to and the data to which you currently do not have access. Find a way to bridge that gap.
Three key takeaways:
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit this month’s sponsor Affiliated Monitors at www.affiliatedmonitors.com.
In today’s edition of Daily Compliance News:
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 Picard which is currently streaming on CBS.
SPOILER ALERT-Although we will review each episode after it appears, we will discuss each episode in depth.
Episode 5, Stardust City Rag. In a flashback, Seven of Nine mercy-kills Icheb, a fellow former Borg drone saved by Voyager, after his Borg implants have been ripped out by the black-marketeer Bjayzl. In the present, La Sirena arrives at Freecloud, where Raffi discovers that Maddox is being held prisoner by Bjayzl, who intends to sell him to the Tal Shiar. Picard’s crew plan to recover Maddox by staging a prisoner exchange, with Seven (and her Borg implants) as the bait. When Bjayzl recognizes Seven, Seven drops the charade and reveals her true intention: to kill Bjayzl to avenge Icheb. Picard persuades Seven to relent, and Maddox is safely recovered and beamed to La Sirena. Afterward, Seven returns to Freecloud and kills Bjayzl without Picard’s knowledge. In sickbay, Maddox tells Picard what he knows about Soji and Dahj, explaining that he sent them to Earth and the Artifact in order to discover the true motivation behind the synthetics ban. After Picard leaves them alone, Jurati tearfully murders Maddox, saying “If you’d seen what I saw”. Meanwhile, Raffi tries to reconnect with her estranged son Gabriel, who is married to and expecting a child with a Romulan woman but is rebuffed and returns to La Sirena.
Highlights, speculations and questions include:
Richard Lummis is on assignment this week so I am pleased to host Jeffery Hayzlett, the Chairman of C-Suite Network (including C-Suite Radio) and Prime Time Television and Podcast Host. Among all these other activities, he is prolific author. Today, we visit about Jeffery’s most recent book The Hero Factor. Highlights of this podcast include:
Resources
For information about the C-Suite Network, click here
Find out more about The Hero Club, click here
Purchase The Hero Factor here.
