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FCPA Compliance Report

FCPA Compliance Report – Upping Your Game in Compliance

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. This is a very special episode. This podcast comes from a webinar hosted by KonaAI on Tom Fox’s latest book, Ûpping Your Game. On this webinar, Tom is joined by Vince Walden, CEO of konaAI; Hemma Lomax, Deputy General Counsel, Vice President, Global Head of Ethics and Compliance at Docusign; and Carl Hahn and Matt Galvin, both from Gentic Global Advisors PLLC.

The discussion revolves around compliance, with thought leaders delving into how organizations can enhance their performance by utilizing emerging technologies and compliance strategies. The conversation begins with a focus on the transformative role of AI in compliance, highlighting its ability to support continuous monitoring, predictive analytics, and embedding compliance into day-to-day business operations. The panel emphasizes the rise of “compliance as a service” and the growing need to prioritize user experience, particularly in third-party risk management and digital transformations. The panel addresses key challenges, such as overcoming resistance from business process owners, and emphasizes the importance of using data strategically to drive better compliance outcomes. The panel introduces the concept of the “Office of Unlock” as a collaborative model to break down silos and promote agility. They also discuss change management, AI governance, and tailoring compliance communications to specific audiences. The episode concludes with practical advice for compliance officers and a forward-looking discussion on aligning compliance programs with evolving organizational and regulatory landscapes.

Key highlights:

  • Upping Your Game
  • Embedded Compliance
  • What’s the business value?
  • What steps should you take right now

Resources:

Hemma Lomax on LinkedIn

Vince Walden on LinkedIn

Matt Galvin on LinkedIn

Carl Hahn on LinkedIn

KonaAI

Gentic Global Advisors

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

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

Categories
Blog

Upping Your Game – Compliance Moves into the 2030s

On February 10, 2025, the Trump Administration suspended investigations under and enforcement of the Foreign Corrupt Practices Act via Executive Order. Many compliance professionals have since wondered what this will mean for corporate compliance programs. Hui Chen, in a blog post entitled Pause in FCPA Enforcement: Crisis or Opportunity?, said, “Many in the compliance world have expressed lament, concerns, and anger. Understandably so. This may feel like an existential crisis for an industry so dependent on enforcement as its raison d’être. Yet, in every crisis, there is an opportunity. This is no exception.” She stated, “We will have the opportunity to find out which companies do not believe they need to engage in bribery to be competitive. But we will also see companies recalibrate their risk tolerance not because the door to foreign bribery has been wedged open, but because their past fear-driven strategy resulted in a sometimes overly narrow view of corporate risk and responsibility in this space.” She listed three key areas to start, the third being “it’s time to up your game.”

I agreed wholeheartedly with Chen. Inspired by Chen, I wanted to write a book for compliance professionals about how they could think through ‘Upping Their Game’ using currently existing Generative AI (GenAI) tools to improve their compliance programs dramatically. It all starts with the precept from Carl Hahn, “To me, the animating reason for our compliance program was to deliver business value. And that was my proposition on day one. It is a positive business-forward proposition based on returning on investment, returning value to the business, being part of the business strategy, enabling the achievement of strategic goals, and enabling the company to successfully deliver to its customers, investors, stakeholders, and employees.” As compliance professionals, it is critical to recognize that this moment is not merely about incremental improvements. The Trump Executive Order brings to the compliance profession a rare inflection point where revolutionary technological advancements, if harnessed strategically, can elevate our profession to a new level of effectiveness, efficiency, and organizational value.

Once reliant on manual oversight, reactive reporting, and periodic audits, compliance monitoring is evolving into a proactive, real-time capability empowered by sophisticated AI technologies. Compliance professionals historically functioned as gatekeepers, viewed as necessary but inconvenient barriers to business velocity. But now, driven by AI, compliance stands poised to shed that restrictive image, embedding directly into core operational workflows and thus shifting from gatekeeper to integral business partner.

Today, the cutting edge of compliance is driven by two primary strands of AI: predictive analytics, leveraging machine learning, and GenAI. Each has distinct capabilities, but combined, they represent a powerhouse able to address the vast majority of traditional compliance challenges and emerging risks. At its core, compliance seeks to identify, manage, and mitigate risks. Traditionally, this has meant looking backward, investigating past issues, and reacting to problems after they occur. AI fundamentally shifts compliance from this rearview mirror perspective to a forward-looking, predictive posture. Machine learning technologies empower compliance officers to train AI models on vast quantities of historical data, teaching systems to recognize patterns and indicators that suggest elevated risk in real-time.

Today, a compliance officer can use predictive analytics to tag transactional data by risk category, identifying potential bribes, improper payments, fraud, conflicts of interest, and sanctions violations. With these capabilities, compliance teams can proactively identify, isolate, and remediate issues before they escalate, significantly reducing organizational exposure and regulatory risk.

This shift from reactive to proactive risk management also enhances compliance agility. Organizations equipped with AI-powered monitoring can swiftly pivot to address new regulatory developments or emerging business risks. Because AI can integrate and analyze data in real-time from diverse sources, such as financial records, employee communications, operational metrics, and third-party data, the organization is positioned to respond to regulatory inquiries swiftly, accurately, and effectively, thus greatly enhancing compliance resilience.

AI offers a transformative capacity to integrate compliance directly into essential business processes by embedding compliance directly into an organization’s operations. Andrew McBride’s approach is termed the “Holy Grail” for compliance professionals who seek to seamlessly embed compliance responsibilities within operational workflows, enabling employees to carry out compliance tasks without interrupting their regular business activities.

For all these reasons and more, I am thrilled to announce the publication of my latest book, Upping Your Game: How Compliance and Risk Management Move to 2030 and Beyond. The compliance function is uniquely situated to lead the management of risk going forward, and in this book, I provide every compliance professional with key tactics, concepts, and strategies to move forward with GenAI today to answer the call to Up Your Game. Each chapter is dedicated to one area of a compliance program: risk management, third parties, training, chatbots, and embedded compliance. I provide key lessons for compliance professionals in each chapter and a case study on how one or more companies have created GenAI tools that can be adapted for compliance. Each one of these strategies meets Hahn’s precept to enhance business value.

I  interviewed some of the top thinkers on GenAI in the compliance field for this book. Contributors included Vincent Walden, CEO of konaAI, a global, AI-driven technology company focused on anti-fraud, anti-corruption, and compliance risks. Matt Galvin, co-founder of Gentic Global Advisors. Carl Hanh, co-founder of Gentic Global Advisors. Dr. Hemma Lomax, Deputy General Counsel, Vice President, Global Head of Ethics and Compliance at Docusign. Jag Lamba is the founder and CEO of Certa. Eric Sydell is a co-founder and CEO of Vero AI.

I hope you check out the book and use it as a basis for Upping Your Game going forward. KonaAI, a leading data analytics firm, sponsored this book.

You can purchase a copy of the book on Amazon.com.

Categories
Compliance Week Conference Podcast

Carl Hahn on Using Data Analytics to Improve Compliance

In this episode of the Compliance Week 2023 Speaker Preview Podcasts series, Carl Hahn discusses some of his panel at Compliance Week 2023, “Data Analytics to Improve Compliance.” 

Some of the issues he will discuss in his presentations are:

  •   The expectations for compliance professionals in using data analytics in their programs;
  • Insights from both sides of the coin – government and compliance professionals on lessons in creating and cultivating data-driven compliance programs; and
  • A sense of what’s coming down the pike, including technical advancements creating opportunities for compliance, ethics, and risk professionals

I hope you can join me at Compliance Week 2023. This year’s event will be May 15-17 at the JW Marriott in Washington, DC. The line-up of this year’s event is simply first-rate, with some of the top ethics and compliance practitioners around.

Gain insights and make connections at the industry’s premier cross-industry national compliance event offering knowledge-packed, accredited sessions and take-home advice from the most influential leaders in the compliance community. Back for its 18th year, compliance, ethics, legal, and audit professionals will gather safely face-to-face to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs. And many others to:

  • Network with your peers, including C-suite executives, legal professionals, HR leaders, and ethics and compliance visionaries.
  • Hear from 75+ respected cross-industry practitioners who are CEOs, CCOs, regulators, federal officials, and practitioners to help inform and shape the strategic direction of your enterprise risk management program.
  • Hear directly from the two SEC Commissioners, gain insights into the agency’s enforcement areas, and walk away with guidance on remaining compliant within emerging areas such as ESG disclosure, third-party risk management, cybersecurity, cryptocurrency, and more.
  • Bring actionable takeaways from your program from various session types, including ESG, Human Trafficking, Board obligations, and many others, for you to listen, learn and share.
  • Compliance Week aims to arm you with information, strategy, and tactics to transform your organization and career by connecting ethics to business performance through process augmentation and data visualization.

I hope you can join me at the event. For information on the event, click here. Listeners of this podcast will receive a discount of $200 by using code TF200 on the link here.