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Daily Compliance News

Daily Compliance News: August 5, 2025, The Staying Focused 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 to the Daily Compliance News. All, from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Top stories include:

  • Musk given $30 bn to ‘stay focused’ by Tesla shareholders. (Bloomberg)
  • Netanyahu moves to fire his prosecutor. (Axios)
  • Credit Suisse’s purchase costs UBS another $33MM. (WSJ)
  • F1 leader pleads guilty to corruption in Singapore. (BBC)

You can donate to flood relief for victims of the Kerr County flooding by going to the Hill Country Flood Relief here.

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Innovation in Compliance

Innovation in Compliance – Mastering Communication: Insights from Dr. Dennis Cummins on Speaking and Selling without Selling

Innovation comes in many areas, and compliance professionals need to be ready for it and embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovative minds, thinkers, and creators in the award-winning Innovation in Compliance podcast. In this episode, Tom Fox hosts Dr. Dennis Cummins, CEO of Pro Speaker Academy, to discuss the art of speaking and selling without pushing sales.

Dr. Cummins shares his journey from being a successful chiropractor to a professional speaker and trainer, emphasizing the importance of effective communication in corporate settings. They explore the connections between speaking, selling, compliance, and internal communication, highlighting how clear and compelling communication can foster a better corporate culture and increased engagement. Dr. Cummins also introduces concepts such as ‘invitational selling’ and the power of storytelling in business. The episode concludes with details about Dr. Cummins’ latest book, ‘Non-Professional Speaking,’ and his upcoming event, ‘Building Your Business from the Stage. ‘

Key highlights:

  • Dennis Cummins’ Professional Journey
  • The Importance of Communication in Corporations
  • Invitational Selling Explained
  • The Power of Storytelling
  • The Danger of Unscripted Moments
  • Building Trust Through Clear Speaking
  • Upcoming Event: Building Your Business from the Stage
  • Writing Non-Professional Speaking

Resources:

Non-Professionally Speaking: How Professionals Turn Small Talks Into Big Profits on Amazon

Visit Dr. Dennis Cummins’ Website

Follow Dr. Cummins on:

Facebook

LinkedIn

Link to Speaker Demo Video

Tom Fox

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Blog

10 Prompts for Compliance

A colleague recently asked me to provide them with some prompts they could use to start their journey using AgenticAI, machine learning, and natural language processing. They also wanted an explanation of why these prompts would be helpful. I thought about it and came up with a list of the Top 10 prompts compliance professionals frequently use or need to use, along with a detailed explanation of their critical importance. I have added an answer for each prompt. To obtain these prompts, I began with the following query to ChatGPT. ‘You are a compliance professional at a US corporation. Please list the top 10 prompts I can use to start my journey of using AI to improve a corporate compliance program.’

1. “Identify emerging compliance risks in our industry.”

Explanation:

This prompt is foundational for proactive compliance management. Compliance professionals must continuously scan the regulatory landscape, industry developments, technology advancements, and geopolitical shifts to detect emerging risks. Understanding new threats before they fully materialize allows compliance teams to take proactive steps, adapt policies, provide training, and mitigate potential issues before they result in violations or enforcement actions. Moreover, this prompt promotes a forward-looking compliance program, which aligns with regulatory expectations such as those outlined by the DOJ’s Evaluation of Corporate Compliance Programs (ECCP), making this a critical practice for effective compliance professionals.

2. “Summarize recent regulatory updates relevant to our business operations.”

Explanation:

Compliance landscapes are dynamic, with rules frequently evolving. This prompt ensures compliance professionals remain fully informed about current regulatory changes that directly impact their company’s operations. Effective compliance teams leverage these summaries to update policies, provide timely training, and communicate clearly to management and employees. Staying abreast of regulatory developments also positions compliance professionals to strategically advise senior leadership on business decisions, mitigate regulatory risk, and avoid costly penalties or enforcement actions resulting from non-compliance or outdated practices.

3. “Provide best practices for conducting a thorough compliance risk assessment.”

Explanation:

Risk assessment is the cornerstone of an effective compliance program, as emphasized by regulatory guidelines from bodies as diverse as the DOJ and COSO. This prompt enables compliance professionals to leverage proven methodologies, frameworks, and standards to identify, prioritize, and address key risk areas systematically. An effective compliance risk assessment not only satisfies regulatory expectations but also informs strategic allocation of compliance resources. Moreover, a robust risk assessment is foundational for proactive management, policy development, and training, enhancing an organization’s overall compliance posture and reducing potential liabilities.

4. “Generate scenario-based training examples on ethical dilemmas and compliance issues.”

Explanation:

Training remains a critical element in a strong compliance program. Scenario-based prompts help compliance professionals create realistic, relatable training modules that resonate with employees. Ethical dilemmas and practical compliance scenarios allow employees to practice decision-making, reflect upon corporate values, and internalize compliance expectations. Such scenario-based training significantly improves retention, awareness, and adherence to corporate standards. Additionally, regulators frequently examine training effectiveness during compliance reviews, and scenario-based training demonstrates a genuine commitment to fostering a culture of compliance.

5. “Draft a communication plan for implementing significant compliance program changes.”

Explanation:

Clear, structured communication is essential when changes occur in compliance programs, procedures, or policies. This prompt helps compliance professionals ensure they address critical points transparently and consistently to all stakeholders. A thoughtful communication plan ensures key messages are effectively conveyed, minimizes confusion, and reinforces the seriousness of compliance updates. Effective communication plans also document a defensible record of the company’s efforts to implement and socialize compliance changes, satisfying regulatory expectations for robust internal communication, transparency, and awareness across the organization.

6. “Suggest steps for performing effective third-party due diligence and monitoring.”

Explanation:

Third-party relationships pose significant compliance and reputational risks, especially concerning bribery, corruption, fraud, and sanctions violations. This prompt assists compliance professionals in defining robust due diligence and monitoring procedures aligned with international best practices and regulatory expectations such as those in the FCPA and the UK Bribery Act. Effective due diligence steps allow companies to proactively identify potential red flags, implement controls, and continuously monitor third-party activities. This approach helps mitigate liability from third-party misconduct and demonstrates regulatory rigor and commitment to compliance oversight.

7. “Explain key lessons learned from recent enforcement actions relevant to our sector.”

Explanation:

Learning from regulatory enforcement actions is pivotal in compliance. This prompt ensures compliance professionals leverage real-world cases to strengthen their compliance programs. By analyzing enforcement trends and critical lessons, compliance officers identify and rectify gaps before they lead to serious issues. Regulators often expect companies to adjust their compliance efforts based on industry-specific enforcement activity, and proactively analyzing recent cases underscores an organization’s commitment to continuous improvement and diligent compliance management. This practice helps mitigate risk, avoid similar pitfalls, and demonstrate compliance program effectiveness.

8. “Guide developing or updating a whistleblower policy and protection procedures.”

Explanation:

Whistleblower protection is not just regulatory guidance; it’s often legally required. This prompt helps compliance professionals craft robust whistleblower policies to encourage employees to report misconduct safely without fear of retaliation. An effective whistleblower program builds trust, integrity, and accountability within an organization. Regulatory bodies, such as the SEC and DOJ, evaluate whistleblower programs as indicators of a mature compliance culture. Hence, this prompt helps compliance teams align policy with best practices and legal mandates, protecting both whistleblowers and the company from serious compliance violations and reputational harm.

9. “Outline a structured root cause analysis process for compliance failures.”

Explanation:

Conducting a root cause analysis (RCA) is essential for compliance professionals to identify underlying factors contributing to compliance failures. This prompt provides compliance officers with a structured methodology to systematically evaluate incidents, prevent recurrence, and make informed decisions on corrective measures. Regulators, including the DOJ, increasingly require companies to demonstrate a systematic RCA process following a compliance breach. Utilizing RCA strengthens an organization’s ability to enhance controls, improve policies, refine training, and demonstrate commitment to compliance effectiveness, thus enhancing credibility with regulators.

10. “Draft a checklist for auditing and monitoring compliance program effectiveness.”

Explanation:

Auditing and monitoring are fundamental elements of a strong compliance program. This prompt helps compliance professionals systematically evaluate their programs’ design, implementation, and ongoing performance. Detailed checklists facilitate consistent reviews, identify vulnerabilities, track remediation progress, and ensure continuous improvement. Regulators regularly review auditing and monitoring processes as evidence of a compliance program’s maturity. Thus, having articulated auditing checklists underscores a proactive approach to maintaining compliance program effectiveness and regulatory readiness and ensures swift corrective actions whenever issues arise.

Conclusion:

These top 10 prompts embody essential practices in modern compliance management. Leveraging these prompts enables compliance professionals to proactively manage risk, remain informed, educate effectively, communicate clearly, and demonstrate regulatory rigor. They ensure that organizations maintain robust compliance programs that protect the business and sustain an ethical, accountable, and risk-aware culture.

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Red Flags Rising

Red Flags Rising: S01 E23 – $140M “High Probability” Enforcement Action

Mike and Brent break down the $140 million corporate resolution announced on Monday, July 28, 2025, by the U.S. Department of Commerce’s Bureau of Industry & Security (BIS) and the U.S. Department of Justice’s National Security Division (NSD). Of this amount, $95 million was imposed by BIS alone, which is the largest stand-alone BIS penalty since April 2023.

Mike and Brent discuss the geopolitical context (00:39), how the resolution responds to December 2024 criticism from the then-majority staff of the U.S. Senate’s Permanent Subcommittee on Investigations (01:58), why this is “where the juice is” for future BIS and NSD enforcement (03:05), how the settlement underscores that sustained compliance with national security-driven regulations requires a substance-over-form approach (04:45), the relevant facts related to the resolving company’s China subsidiary and customers (06:36), the relevant facts related to the parent company (08:59), why a letter of assurance and end-use/end-user certifications were not sufficient to respond to the “red flags” identified (10:38), how U.S. parent companies should be thinking holistically about export controls risk and strategies for mitigating that risk, including in responding to BIS outreach visits or queries to hopefully avoid administrative subpoenas or, worse, referrals to criminal authorities (12:37), the signals BIS and NSD expect companies subject to U.S. export controls to perceive from the public documents (16:37), the significance of BIS’s reference to General Prohibition 10 and to attempted violations of U.S. export controls (16:37), and the key takeaways for legal and trade compliance professionals (19:09).

Mike and Brent then conclude with the still-back-by-popular-demand segment, Brent Carlson’s “Managing Up” (19:52).

Resources:

The BIS Press Release, with links to the settlement documents

The NSD Press Release, with links to the corporate guilty plea and criminal information

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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The Ethics Experts

Episode 225 – Jacqui Pruet

In this episode of The Ethics Experts, Nick welcomes Jacqui Pruet.

Jacquelyn Pruet—Driving change in challenging environments to achieve desired outcomes. Your solution to corporate content strategy, creation, program implementation, and oversight.

A corporate “McGyver” that gets your organization to the moon with Scotch tape, bubble gum, and a toothpick.

A change management specialist, legal expert, and strategist who helps organizations achieve measurable outcomes for behavioral modification goals by creating award-winning programs that are cost-effective and impactful.

Connect with Jaqcui on LinkedIn.

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Corruption, Crime and Compliance

NAVEX’s 2025 Hotline Benchmark Report

Is your internal reporting program keeping up or falling behind the curve? With over 2.15 million reports analyzed from nearly 70 million employees worldwide, NAVEX’s 2025 Regional Whistleblowing & Incident Management Benchmark Report offers a goldmine of insight into how companies are (and aren’t) managing employee concerns. In this episode, Michael Volkov breaks down the key findings, regional trends, and what they really mean for compliance officers trying to build a stronger speak-up culture.

NAVEX dominates the hotline market, and its annual benchmark report gives compliance professionals an unparalleled look at reporting behaviors across the globe. From rising retaliation concerns to surprising substantiation rates, the numbers speak volumes.

You’ll hear him discuss:

  • Why Europe’s sharp spike in reporting rates is likely tied to the EU Whistleblower Directive
  • How North American companies resolve reports faster and what that says about handling HR-driven complaints
  • Why anonymous reporting is much higher in APAC, Europe, and South America and what it might reveal about employee trust
  • How retaliation claims are being substantiated at drastically different rates depending on geography and legal frameworks
  • What’s behind the higher substantiation rates at privately owned companies compared to public ones
  • How reporting channel preferences are shifting and why phone-based hotlines may be on the way out
  • What “time to report” stats reveal about fear, hesitation, and the need for cultural change in the workplace

Resources

Michael Volkov on LinkedIn | Twitter

The Volkov Law Group

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Trekking Through Compliance

Trekking Through Compliance: Episode 64 – Breaking the Silence: Navigating Difficult Conversations with Wisdom from ‘Plato’s Step-Children’

There is no substitute for courage and candor in the world of corporate compliance. Some of the most vital and uncomfortable moments we encounter come when we must have conversations on difficult topics. It can be about misconduct, bias, bullying, or toxic behavior that threatens our organization’s culture and integrity. Yet, all too often, leaders and compliance professionals look for a way around these tough talks, hoping problems will resolve themselves.

Few television episodes confront the consequences of unchecked power, humiliation, and silence more starkly than Star Trek: The Original Series’ “Plato’s Step-Children.” Let’s draw five critical compliance lessons, grounded in five key scenes, from this infamous episode to guide our approach to conversations on difficult topics.

Lesson 1: Name the Unacceptable—Don’t Look Away

Illustrated By: Alexander, the only member without telekinetic power, is humiliated and abused by his peers and is often forced to grovel or perform for their amusement.

Compliance Lesson: The first, hardest step in any conversation on difficult topics is to acknowledge unacceptable behavior. The compliance professional must name the unacceptable, break the code of silence, and show the courage to call out abuse—even when it makes others uncomfortable.

Lesson 2: Empathize with the Vulnerable—Center Their Voice

Illustrated By: Alexander, the outcast, repeatedly begs Kirk and the crew for help, expressing pain and isolation. His vulnerability is palpable; he has suffered for years, dismissed by his peers and unseen by those in power.

Compliance Lesson: In every organization, there are individuals, often in less powerful positions, who experience harm most acutely. When confronting a difficult subject, the compliance leader’s job is to center the voices and experiences of those most at risk, not the comfort of those in power.

Lesson 3: Address Abuse of Power—Challenge the Bully

Illustrated By: The Platonians, particularly Parmen, take delight in using their power to force Kirk, Spock, and others to perform degrading acts.

Compliance Lesson: One of the most challenging conversations in compliance is confronting those who abuse their authority. Power imbalances often shield perpetrators from scrutiny. “Plato’s Step-Children” is an explicit reminder that leadership’s job is to challenge, not enable, bullying, coercion, or harassment.

Lesson 4: Support Each Other—Build Allies in Conversations on Complex Topics

Illustrated By: Even when stripped of control, Kirk and Spock’s teamwork and solidarity allow them to resist psychological breaking and maintain a sense of dignity.

Compliance Lesson: When addressing complex topics, it’s essential to build a coalition, including HR, legal, or trusted colleagues, to provide the necessary strength, perspective, and support to sustain the effort.

Lesson 5: Restore Dignity—End the Cycle of Harm

Illustrated By: In one of the episode’s most disturbing scenes, Kirk, Spock, Uhura, and Chapel are forced into humiliating, non-consensual acts. The Enterprise crew refuses to retaliate in kind when they gain the upper hand. The episode concludes not with vengeance, but with an insistence on dignity and ethical conduct.

Compliance Lesson: The ultimate goal of any conversation on difficult topics, especially those about harm or misconduct, is restoration and prevention.

Final ComplianceLog Reflections

Conversations on difficult topics are not just a leadership skill; they are the very foundation of a culture of integrity. When we name abuse, center the vulnerable, challenge power, support each other, and restore dignity, we transform moments of pain into turning points for progress.

Resources:

⁠⁠Excruciatingly Detailed Plot Summary by Eric W. Weisstein⁠⁠

⁠⁠MissionLogPodcast.com⁠⁠

⁠⁠Memory Alpha

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FCPA Compliance Report

FCPA Compliance Report – Navigating Corporate Scandals: Insights on Governance, Compliance, and Recovery with Steve Vincze

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes Steve Vincze back to discuss the recent corporate scandal involving executives from Astronomer.

Tom and Steve take a deep dive into governance, compliance, and internal controls, drawing parallels with historical cases like Boeing’s 2003 CEO scandal. Vincze shares five critical success factors and three essential elements for establishing an effective ethics and compliance program, emphasizing the importance of transparency, strong leadership, and re-establishing trust. He also discusses how military leadership and open communication can help rebuild a company’s culture post-scandal. The episode closes with practical advice for companies facing similar challenges and how they can recover and thrive.

Key highlights:

  • The Viral Incident and Its Implications
  • Corporate Recovery Strategies
  • Five Critical Success Factors
  • Establishing Trust and Credibility
  • Military Insights on Leadership
  • Addressing Scandals and Rebranding

Resources:

Steve Vincze on LinkedIn

Trestle Compliance

Tom Fox

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For more information on the use of AI in Compliance programs, Tom Fox’s new book is Upping Your Game. You can purchase a copy of the book on Amazon.com

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Blog

Navigating Ethical Storms: Five Critical Compliance Lessons from the Astronomer Scandal

Recently, we witnessed the Astronomer scandal unfold, making headlines not just for its salacious nature but also for the significant corporate governance and compliance questions it raised. I had the opportunity to sit down with Steve Vincze, founder of Trestle Compliance, for an episode of the FCPA Compliance Report, to consider what a company might do when such an ethics crisis hits. Vincze has extensive experience with just this issue from a similar scandal involving Boeing back in 2003.

Vincze unpacked five critical lessons compliance professionals must heed when confronted with an ethical crisis resembling Astronomer’s.

1. Own the Problem: Transparency Above All

The first, and arguably most important lesson, is the necessity of transparency. Acknowledge the issue unequivocally. Vincze stressed that a corporate crisis is fundamentally a corporate responsibility, regardless of individual faults. Resist the urge to minimize or dismiss the event as merely a lapse in personal judgment. The scandal is yours to manage, and your response will directly impact your organization’s credibility. Owning the problem conveys to stakeholders that your organization prioritizes accountability and transparency, crucial traits for long-term recovery.

2. Leadership Front and Center: Demonstrate Integrity and Commitment

The role of leadership during a crisis cannot be overstated. Vincze’s insights emphasized the need for the highest-ranking executive, especially the new leadership stepping in after a scandal, to be visibly and actively involved in both internal and external communications. Leaders must embody the change they seek, modeling integrity and reinforcing trust. Active, visible leadership sends a strong signal that ethical standards and compliance culture are fundamental and non-negotiable.

3. Establish a Robust Ethics and Compliance Framework

An ethical crisis offers a potent opportunity to recalibrate your corporate culture. As Vincze recommended, clearly define or redefine your organization’s core values through a robust ethics and compliance program. Ensure that these values permeate every policy and procedure. Such a program should go beyond mere regulatory compliance. The company must foster a genuine culture of integrity and trust. This sends a powerful message internally, bolstering employee morale, and externally, enhancing brand reputation.

4. Clarity and Precision: Communicate the Path Forward

Vincze underscored that organizations must communicate their steps to address the crisis, including the rationale behind each decision. Clarity is critical; employees, customers, and stakeholders need to understand not only what actions are being taken but also why. Ambiguity in crisis management breeds distrust and confusion. Conversely, transparent, precise communication builds confidence and illustrates genuine intent to rectify and improve organizational behavior.

5. Courage to Walk Away: Integrity Over Short-term Gains

Compliance often requires difficult choices. Vincze’s fifth lesson highlights the importance of having the courage to walk away from individuals and business relationships that are misaligned with your ethical standards. Not every stakeholder or employee will adapt to new cultural expectations or moral guidelines. It’s essential to prioritize integrity over short-term financial or relational benefits. By demonstrating a strict and uniform enforcement of your compliance policies, you solidify trust and establish a clear ethical boundary.

In addition to these lessons, Vincze shared three essential elements critical for establishing an effective ethics and compliance program post-crisis.

Personal Engagement from Leadership

The Astronomer’s leader(s) and the Chief Compliance Officer must actively participate in every aspect of the program. They should set examples through actions, not just words, exemplifying the standards they wish to instill across the organization. Leaders must engage with employees through regular communication, training sessions, and personal interactions to reinforce the importance of ethical conduct. By visibly aligning their behavior with the organization’s values, leaders inspire trust and confidence among staff. Moreover, their hands-on involvement helps address concerns quickly and effectively, ensuring employees feel heard and valued during the recovery phase.

Right People, Right Roles

Surround yourself with individuals who not only possess technical expertise but also have the interpersonal skills to effectively bridge gaps between legal compliance requirements and practical business operations. Whether building a large team or operating with limited resources, prioritize quality, integrity, and practical expertise. The right individuals should demonstrate strong ethical judgment and possess the ability to communicate compliance standards clearly and persuasively across various organizational levels. Selecting team members who can translate complex regulatory demands into actionable strategies helps facilitate a culture where compliance is not just mandated but embraced as a crucial element of business success.

Balanced Approach to Public Relations

While it is beneficial to maintain a humanizing and approachable image, Vincze advised caution regarding overly humorous or irreverent messaging during a sensitive period. Humor and creativity can indeed facilitate relatability, but they should follow the serious groundwork of rebuilding ethical credibility and trust. PR strategies must carefully balance transparency and accountability with a tone that resonates positively with internal and external stakeholders. Leveraging strategic messaging that acknowledges past issues while clearly outlining proactive measures ensures stakeholders understand your commitment to rectifying mistakes. Ultimately, maintaining an appropriate, thoughtful public image reinforces credibility and supports long-term recovery.

Drawing upon his military experience, Vincze also emphasized the importance of open, respectful dialogue between leadership and employees. Creating safe, transparent channels for communication ensures that employees feel heard and valued. This environment fosters mutual trust and aids in surfacing potential issues proactively, long before they become public crises.

Moreover, an intangible yet crucial consideration emerged from our discussion—talent acquisition and retention. As compliance professionals, we must acknowledge how ethical breaches can significantly damage our organization’s reputation among potential hires and existing employees alike. The fallout from a scandal impacts the very fabric of corporate culture, often more profoundly than immediately quantifiable losses.

Ultimately, the Astronomer scenario underscores that ethical crises, while uncomfortable and challenging, can also serve as critical turning points. They present opportunities to strengthen corporate integrity, enhance transparency, and demonstrate genuine leadership. Compliance officers must be proactive, transparent, and resolute in establishing and upholding ethical standards.

Recovery is always possible; the response is thoughtful, strategic, and aligned with the core values of integrity and transparency. Compliance professionals, armed with these five lessons, can guide their organizations through the storm toward a robust ethical culture and lasting organizational success.

Remember, the road to recovery might be challenging, but as compliance professionals, our commitment to integrity will illuminate the path forward. Let’s keep the conversation going, continue learning, and always strive to elevate the ethical standards of our corporate communities.

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Daily Compliance News

Daily Compliance News: August 4, 2025, The Market-Based Culture 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 consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Top stories include:

  • AT&T CEO ditches ethics-based culture for market-based culture. (Business Insider)
  • Ukraine announces arrests for military procurement corruption. (NYT)
  • The first insider trading conviction for NFTs is overturned. (Reuters)
  • Asia’s ‘scamdemic’ problem. (Bloomberg)

You can donate to flood relief for victims of the Kerr County flooding by going to the Hill Country Flood Relief here.