Dan Zitting is the CEO of Galvanize and is Tom Fox’s guest this week on the Innovation in Compliance Podcast. Dan was the Chief Product Officer of Galvanize before taking up the CEO role. Galvanize is a software company that helps its clients achieve their goals and objectives. Dan and Tom discuss GRC software, the role of GRC professionals, and why data is so important to a company’s operations.
The Evolving Role of GRC
GRC refers to a company’s governance, risk management, and compliance capabilities in achieving its objectives. The pandemic has proven that GRC is a valued and impactful asset. As a result, the scope and demand for GRC professionals and their services have accelerated. “We had the ability to work through one of the most pervasive risk issues to come along in decades, and it demonstrated the value of risk management and the value of strong governance,” Dan tells Tom. “Our role is to think about how we can demonstrate that same level of value in all of the other areas of risk that were already on the radar.”
The Cost of Reputational Risk
Tom asks Dan to explain why reputational risk may be more costly than a fine. Dan explains that though reputational risks may be harder to quantify, the time it takes to undo the damage done is significant and tends to have a more lasting impact. “A significant loss of talent or employees and having to go rebuild that reputation and re-recruit…are real costs, and they are often much bigger,” Dan says.
Preventing NonCompliant Conduct
Preventing noncompliant conduct is just as important, even more so, than detecting it. “There are two key things,” Dan begins, “[The first being] the very nature of building strong governance programs in and of itself creates prevention.” As culture shifts, what was previously introduced as a detection mechanism becomes a prevention mechanism. In addition, advancement in technology is helping organizations prevent corrupt activities. Dan gives the example of data analytics and its machine learning model.
GRC in The Future
GRC is going to have a much larger and broader impact on the world because it’s a more efficient and impactful way to bring governance into organizations. Dan tells Tom that compliance professionals need to embrace technology more: trying to evaluate governance programs and controls manually is ineffective and time-consuming.
Resources
Dan Zitting | LinkedIn | Twitter
Galvanize
What does it take to be an agent of change in #internalaudit?
The times they are a changing. Are you ready??
Well there’s nobody better to talk about this topic than Richard Chambers who wrote a book on the topic and has had a 46 year career in internal audit.
You probably know Richard from his years as President and CEO of the Institute of Internal Auditors #IIA, but listen to this episode to also find out what he’s up to now, and learn some other interesting things about Richard like his favorite Beatle, and the advice he’d give to the young Richard who was starting out in his career today.
So much good information you can learn when you listen to the entire #jammingwithjason #podcast at: http://www.jasonmefford.com/jammingwithjason/
Share this with everyone you know 🙂
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Episode 066 — Michele Wucker
In this episode of The Ethics Experts, Nick welcomes Michele Wucker, bestselling author of “The Gray Rhino” and “You Are What You Risk,” speaker, strategic advisor, and policy expert, to the show.
Charles Schwager is the Chief Compliance and Ethics Officer of Waste Management. Tom Fox describes his role as “one of the most unique CECO roles in compliance around”. Charles, Tom, and Valerie Charles discuss what Waste Management does differently, how the company managed the two major crises of 2020, and why more data may not necessarily be better.
Looking at Compliance Holistically
Charles explains that all departments at Waste Management work together to build a holistic compliance culture. “We are all partnering together to create a very strong and comprehensive culture of compliance and ethics, so we try not to have one area where it’s strong and others where it might be different. We really do try to make it collaborative, holistic and [there’s] a lot of teamwork involved that goes into that,” he tells Tom. Many of their 50,000 employees work on the field, and Charles explains how they foster a “two-way communication loop” for these team members using technology.
Handling COVID and Social Injustice
Tom asks Charles, “… you asked your compliance team to look at reporting data and perhaps see if there were some new or different insights you might be able to gain from that data. Could you describe the process you and your team went through?” Charles responds that their workforce is reflective of American society, so the two major issues that defined 2020 – COVID and the social justice movement – were reflected in the calls coming through their helpline. “When we saw that, we decided to create a special triage process around that so we could get out in front of that as quickly as possible, knowing that if it happened in one place it could be happening in others,” Charles remarks. He describes the tracking system they put in place to handle both crises. “We were fortunate to be on top of our helpline and utilize it in different ways like that. And the technology worked well for us to have visibility and be able to react to those things.” he points out.
Structured Collaboration
“I’m a believer in structured collaboration,” Charles remarks. Cross-functional and cross-departmental teams at Waste Management work together to keep up-to-date with compliance. Everyone needs to work together, Charles emphasizes: “it’s only as good as everyone working together and getting that buy in…” The leadership has to want it as well. Their company’s strong compliance culture is proof of this. For Charles, operationalizing compliance means getting everyone actively involved.
Using Data
Charles tells Valerie, “We really focus on a strong ‘Speak up, Listen up, Follow up’ culture.” He sees increased reporting as a natural result of their focus on building a vibrant compliance culture. Valerie asks his thoughts on whether data analytics will transform compliance in the future. He responds that it’s a good skill set to have in your organization and that he is always thinking about how to use data. However, he argues, “If you really don’t understand the data, it can create situations where people extrapolate or make conclusions that… are faulty.”
Resources
Charles Schwager on LinkedIn
Waste Management
In this Episode of the FCPA Compliance Report, I am joined by Greg Keating, well-known employment lawyer who focuses on whistleblower regulation and litigation. In this episode we take a look at the current state of whistleblower regulations, case law and recent SEC awards. Highlights include:
- Greg recently changed firms, moving to Epstein Becker & Green, P.C. He tells us about your new firm?
- Why was the whistleblower provision of the Anti-Money Laundering Act of 2020 so controversial?
- What are you counseling clients on regarding whistleblower claims under the Biden Administration?
- In addition to the AMLA of 2020, what other regulatory changes have you seen from the federal government regarding whistleblowers?
- Are there any court cases involving whistleblowers that have gotten your attention in 2021?
- 2002 was the Year of the Whistleblower with Sherron Watkins of Enron, Cynthia Cooper of WorldCom and Collen Rowley of the FBI. Could 2021 be in the running for such a designation?
- Why is listening to those employees who raise their hands and speak up so critical?
- Why is a proactive approach to whistleblowers so critical?
Resources
Greg Keating on LinkedIn
Epstein Becker & Green, P.C. firm profile
In today’s edition of Sunday Book Review:
- London War Notes, 1939-1945 By Mollie Panter-Downes
- Pogue’s War: Diaries of a WWII Combat Historian By Forrest C. Pogue
- Other Clay: A Remembrance of the World War II Infantry By Charles R. Cawthon
- Panzer Commander By Hans von Luck
Welcome to newest edition to the Compliance Podcast Network: From the Editor’s Desk, a podcast where Tom Fox and Dave Lefort, Editor in Chief at Compliance Week unpack some of the top stories which have or will appear in Compliance Week, look at top compliance stories, talk some sports and generally try to solve the world’s problems. In today’s inaugural, episode we take a look back at top stories in CW from May, the CW 2021 Conference, chat will Aly McDevitt, author of a 5-part special report on the VW Monitorship and talk some sports.