Categories
Why a Duck

COVID-19 and Compliance: Part 3-Why Compliance Never Sleeps


In this five-part series, Mike Volkov and Tom Fox consider COVID-19 from a variety of angles and perspectives; from the Board of Directors, the CCO, the ethical company, new laws and regulations, crisis management and leadership. In this third episode, we consider some of the various laws and regulations impacted by the coronavirus health crisis. Highlights from the podcast include:

  1. What new or special challenges are there in the Supply Chain during the COVID-19 crisis?
  2. What are changes in employment laws that impact corporations during the coronavirus health crisis? What are some of the employee risks faced during this crisis?
  3. What are some of the challenges around data privacy/data protection?
  4. What is the Bank Secrecy Act and how does it come into play during COVID-19?
  5. How can a corporate monitor help during this crisis?
  6. Why compliance must NEVER sleep during the coronavirus crisis.

Resources
Mike Volkov
COVID-19 Supply Chain Risk Lessons
COVID-19: Important Changes to Employment Law
COVID-19: Employee Risks and Privacy
Bank Secrecy Act Compliance During the COVID-19 Crisis
Tom Fox
Boeing Needs a Monitor
Jared Connors on Supply Chain During Coronavirus
Joanne Taylor on Financial Crimes Compliance During Coronavirus

Categories
31 Days to More Effective Compliance Programs

Monitoring of third-parties


How can data analytics be used for continuous improvement where the primary sales force used by a company is third-parties? A clear majority of FCPA violations and related enforcement actions have come from the use of third-parties. While sham contracting (i.e., using a third-party to conduit the payment of a bribe) has lessened in recent years, there are related data analysis that can be performed to ascertain whether a third-party is likely performing legitimate services for your company. There are several more analytics that can be run in combination to identify suspicious third-parties and some of the simplest can be to look for duplicate or erroneous payments, all of which can lead to continuous improvement. Here we focus on the question posed by the 2019 Guidance, How does the company monitor its third parties?
The final concept of finding patterns that can be discerned through the aggregation of huge amounts of transactions, is the next step for compliance functions. Yet data analysis does far more than simply allow you to follow the money. It can be a part of your third-party ongoing monitoring as well by allowing you to partner the information on third-parties who might come into your company where there was no proper compliance vetting. The opportunity for continuous improvement through a feedback loop is obvious and a clear step you should take going forward.
 Three key takeaways:

  1. Always remember to follow the money to see where a pot of money could be created to fund a bribe.
  2. Transaction monitoring techniques around fraud monitoring translate to data analysis for compliance.
  3. Do not forget to check names against known PEP and SDN lists.
Categories
Daily Compliance News

April 8, 2020-the Tribute to John Prine edition


In today’s edition of Daily Compliance News:

  • Trump removes watchdog over CAREs bailout. (NYT)
  • Farewell to the hot desk? (NYT)
  • Boeing to close SC plant. (WaPo)
  • John Prine dies. (RollingStone)
Categories
Compliance and Coronavirus

Eric Feldman on Culture Assessment During Coronavirus


Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by Eric Feldman, SVP at Affiliated Monitors, Inc. We discuss why doing a culture assessment now during the Coronavirus health crisis will provide you a much more robust picture of your corporate culture and how you can do so in a cost effective, efficient manner.
For more information on Affiliated Monitors, Inc. check out their website here.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.

Categories
Great Women in Compliance

Episode 56 – Mary & Lisa on Compliance and Coronavirus


Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.
COVID-19 has had a monumental impact all over the world.  Every day, we see new public health issues, are living through economic challenges and everyone’s daily lives are very different than a year ago, or even 3 months ago.  In this special joint episode, Mary and Lisa share various perspectives of the new normal in their day-to-day lives regarding how the Coronavirus has affected both work and home during this era.
The discussion runs the gamut from serious to lighthearted topics including contrasting life in lockdown in New Zealand for Mary with Lisa’s observations from the United States.  You’ll hear a bit about their experiences at work, in the compliance communities and some tips for vendors to facilitate value add outreach to Compliance professions at this sensitive time.
Of course, they also share what is on their reading and viewing lists, the exchange of uplifting moments, silver linings and what they are doing to support their colleagues, families and communities.
Join the Great Women in Compliance community on LinkedIn here.

Categories
Compliance Into the Weeds

Covidiocy


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. While we have both written and spoken about companies who are responding positively during the COVID-19 crisis, today we take up companies who are not doing so and are thereby engaging in covidiocy.
Some of the highlights include:

  • What is the tale of the Boston Sports Club?
  • What were its governance failures? Its policy failures?
  • What is the FINRA Guidance on Pandemic Risks?
  • Why is liquidity so critical now?
  • Corporate governance failures by the parent.

Resources
Matt Kelly blog posts , When Covidiocy Strikes Corporate Governance and New FINRA on Pandemic Risks
Tom Fox blog post, Navigating the Coronavirus Crisis for Compliance Professionals -Company Responses

Categories
Why a Duck

COVID-19 and Compliance: Part 2-Board of Directors and Crisis Management


In this five-part series, Mike Volkov and Tom Fox consider COVID-19 from a variety of angles and perspectives; from the Board of Directors, the CCO, the ethical company, new laws and regulations, crisis management and leadership. In this second episode, we consider the role of the Board of Directors and crisis management. Highlights from the podcast include:

  1.  Companies have three significant initial hurdles in the COVID-19 context: (a) Can the business continue to operate while protecting health and safety of employees and stakeholders? (b) If so, how can business continue and operate efficiently? (c) What will be impact on business from discontinuation of related industries?
  2. Are you assessing your risks in an ongoing and (almost) daily updating manner?
  3. What are your scenario-based financial analyses relating to capital, liquidity, financial health and survival?
  4. What is your succession planning?
  5. Security, data protection and privacy protocols.

Resources
Mike Volkov
Board Governance Challenges in COVID-19 Crisis
COVID-19: Crisis Management
Tom Fox
Peter Eyre on Navigating the Waters
Mike Cherkasky on Testing Your Mettle

Categories
31 Days to More Effective Compliance Programs

Auditing of third-parties


Third-parties still present the highest risk around compliance. Indeed, in the area of third-parties the 2019 Guidance, posed the following question in a section entitled, Management of Relationships – How has the company considered and analyzed the compensation and incentive structures for third parties against compliance risks? How does the company monitor its third parties? Does the company have audit rights to analyze the books and accounts of third parties, and has the company exercised those rights in the past? 
It is therefore critical that you use monitoring and auditing when it comes to continuous improvement for this high-risk area. Next, we consider three aspects of a company’s audit program for its compliance function: the types and purpose of third-party audits, planning for third-party audits and interviewing third-parties.
Three key takeaways: 

  1. Start planning your third-party audit 4-6 weeks in advance of the actual audit.
  2. Use your business sponsor to help facilitate the process with the third-party.
  3. This is not a “gotcha” interview but an open Q&A process where you have a golden opportunity to educate as you ask questions.
Categories
The Compliance Life

Compliance and Pizza with Russ Berland


Tom Fox chats with the Chief Compliance Officer at Aventiv Technologies, Russ Berland, in the premiere episode of The Compliance Life. They discuss the lessons Russ learned as a compliance officer and how it relates to pizza.


Pizza Is The Key To Success

Tom asks why Russ believes that pizza is the key to success as a compliance officer. Russ responds that compliance often functions in a silo; however, to be effective, a compliance officer must be engaged with everyone who has influence within the company. “I found the secret weapon in that arsenal to build those relationships,” Russ says, “was to buy lots and lots of pizza, and I would bring together these groups of all these people, have strategy sessions. It was funny that when the pizza came out, people started talking, sharing about what was really going on in the organization, who they were as people, what they were looking for and it broke down a lot of the barriers.” He learned this strategy at Hewlett Packard. Connecting with people is the key to success, he emphasizes
His Compliance Life
Russ details his journey from associate general counsel at Compaq to compliance officer. As a consequence of the merger with Hewlett Packard, a large part of the legal department at Compaq was being phased out. He was offered the opportunity to join the newly formed compliance department, which he accepted. He had real life experience using the skills they needed, so he was a natural fit. He describes how he helped streamline their internal investigation process to a multi-disciplinary one with governance. Throughout his career, Russ says, he has worked in compliance and investigations on all six inhabited continents
Resources
Aventiv Technologies
Russ Berland on LinkedIn 

Categories
Compliance and Coronavirus

Peter Eyre on Navigating the Waters During COVID-19


Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by Peter Eyre, a partner at Crowell & Moring. We discuss how the Coronavirus health crisis will impact employee relations, the interplay of federal, state, county and city orders during this time and how you can navigate these often choppy waters.
The firm also has one of the best resources on navigating the coronavirus health crisis, the Coronavirus Resource Center. It is updated multiple times daily. You can check it out here.
This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.