Categories
Compliance Into the Weeds

Musk Pulls U-Turn on Twitter Board

Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to more fully explore a subject. This week, Matt and Tom take on the strange comings and goings of Elon Musk and his participation on the Twitter Board of Directors. Highlights include:

·      When and how did Musk become Twitter’s largest shareholder?

·      Why was he asked to come on to the Board?

·      SEC filing requirement issues?

·      What role did the various stakeholder groups, including employees, have in Musk turning down the Twitter Board seat?

·      What are the compliance and governance issues to be learned?

Categories
The Compliance Life

Susan Divers-Moving In-House

The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Susan Divers, currently Director of Thought Leadership at LRN.

In 1994,  Susan moved in-house becoming the first Deputy GC for international at SAIC.  In this role she set up compliance programs for ABC, trade controls and investigations as SAIC did not have a dedicated CECO at that time. She traveled extensively internationally and had experience with the Overseas Private Investment Company after the SAIC joint venture was nationalized by Chavez in Venezuela. After a brief stop at Lockheed Martin, Susan moved to the Chief Ethics and Compliance (CECO) role at AECOM.

Resources

 Susan Divers LinkedIn Profile

LRN

Categories
Innovation in Compliance

Revenue Risk Management for Compliance with Andy Rudin


 
Andy Rudin is the Managing Principal of Contrary Domino, a management consulting company that improves financial performance by optimizing internal operations. Tom Fox welcomes him to this week’s show to talk about revenue risk management and revenue governance, and what they mean for the sales officers within organizations.  
 

 
Contrary Domino
Risk management is not often factored in the sales and marketing funnels of organizations. Andy founded Contrary Domino to answer this need. The percentage and likelihood of revenue opportunities closing or coming to fruition aren’t often thought of as risk management problems. “I saw that opportunity and wanted to bring more process rigor to that, more mathematical rigor and bring the risk management principles into the realm of revenue generation,” he tells Tom. Contrary Domino’s client base is mainly information technology firms with sales forces of ten or more. “Helping organizations establish that culture and then establish processes and mechanisms to prevent ethical problems from occurring or at least minimizing their likelihood is central to what I do,” Andy says. 
 
Revenue Risk Management
Tom asks Andy to define revenue risk management. “Revenue risk management is taking the fundamental risk framework that you might find in any other discipline and bringing the same principles into risk management,” he explains. It entails going through risk identification, risk polarization, and other activities where you’re considering various outcomes. “You’re looking at your worst case, your best case, and then you’re most likely case, and then running through your scenarios iteratively and then determining what are we most likely to achieve,” Andy remarks. 
 
Revenue Governance
“The involvement and oversight of revenue generation activities by others in a cross-functional, a cross-departmental way in an organization,” is Andy’s definition for revenue governance. In the past, companies left the revenue engine in the sole hands of the sales department. Presently, revenue operations have been spread out to where even customer support can be responsible for it. The governance aspect relates to all entities in the organization having visibility into the activities of the sales department, and what they are doing. “Coupled with that is the opportunity to take action if something is not compatible with corporate strategy or if certain processes or activities that are occurring in generating revenue bring risk into the organization,” Andy adds. 
 
The Future of Revenue Risk Management
Tom asks Andy to shed some light on what role revenue risk management will play in the coming decade. Risk management in the realm of sales is going to become more dominant. Even though most organizations haven’t put the formal risk management rigor to their sales department, they are thinking along those lines. There will also be a greater role for financial planning in the sales operations as more businesses become integrated. 
 
Resources
Andy Rudin | LinkedIn | Twitter 
Contrary Domino
 

Categories
FCPA Compliance Report

Matt Galvin and Dan Kahn-Part 1, Disclosing to and Working with the DOJ

This episode of the FCPA Compliance Report begins a special two-part series with two well-known compliance professionals. Matt Galvin, most recently the CCO at AB-InBev and Dan Kahn, former acting Deputy Assistant Attorney General of the Criminal Division, Chief of the Fraud Section, and Chief of the FCPA Unit. Dan is now in private practice at DavisPolk. In this Part 1 we take up the key issues around dealing with the DOJ including the factors which go into the decision to self-disclose, incentives and disincentives in compliance programs, internal investigations including who is involved and scoping an investigation, presenting information to the DOJ during the pendency of an investigation and negotiating the final settlement and post-resolution; including both ongoing reporting and continuing innovation in your compliance program.

Resources

Matt Galvin on LinkedIn

Dan Kahn at Davis Polk

Categories
Creativity and Compliance

A Spoonful of Sugar

Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network. In this episode, Tom and Ronnie begin a short series on provocative statements on compliance training and communications, followed by discussion. In this episode, why does a spoonful of sugar in the form of comedy and entertainment make compliance training and communications more engaging and effective.

Resources:

Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)

Learnings & Entertainments (Website)

60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.

Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.

Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.

Tales from the Hotline – check out some samples.

Categories
Great Women in Compliance

Ellen Hunt – Organizational Justice


Welcome to the Great Women in Compliance Podcast, co-hosted by Lisa Fine and Mary Shirley.
In today’s episode, Lisa speaks with one of the “OG GWICs,” and one of the first interviewees, Ellen Hunt.  Ellen joined Spark Compliance in 2021, and is always a supporter for women in compliance, and in compliance as a whole.  Today, we follow up on her 2021 podcast, where Lisa and Ellen discussed how the E&C profession is addressing retaliation, and the importance of anti-retaliation as part of speaking up.
The main discussion is about organizational justice, and particularly aspects of procedural justice, as this is one where compliance professionals can have a huge impact.  They discuss the concept of consistent discipline and fairness, and what that can mean.   They also discuss when Will Smith slapped Chris Rock at the Oscars telecast from an organizational justice standpoint, and how similar issues play out in corporations.
You can subscribe to the Great Women in Compliance podcast on any podcast player by searching for it and we welcome new subscribers to our podcast.
Join the Great Women in Compliance community on LinkedIn here.

Categories
The Compliance Life

Susan Divers – College & Early Professional Career


The Compliance Life details the journey to and in the role of a Chief Compliance Officer. How does one come to sit in the CCO chair? What are some of the skills a CCO needs to success navigate the compliance waters in any company? What are some of the top challenges CCOs have faced and how did they meet them? These questions and many others will be explored in this new podcast series. Over four episodes each month on The Compliance Life, I visit with one current or former CCO to explore their journey to the CCO chair. This month, my guest is Susan Divers, currently Director of Thought Leadership at LRN.
Susan graduated from George Washington University at night while working at the State Department during the day. Her legal career began Office of the Legal Advisor at the State Department and continued in London with two large law firms.  I moved back to Washington, entered private practice, working first with Bob Strauss at Akin Gump and then moving over Sonnenshien’s DC office where she became a partner.
Resources
Susan Divers LinkedIn Profile
LRN

Categories
Everything Compliance - Shout Outs and Rants

Everything Compliance – Shout Outs and Rants from Episode 98


In this episode of Shout Outs and Rants, we submit the following for your consideration:

1. Jay Rosen rants the Academy of Motion Picture snubbing of the Director of Dune for Best Director when the picture won 6 other Oscars.

2. Matt Kelly shouts out to the Golden Raspberry Foundation, who award the ‘Razzie’s’ for withdrawing their previously created award of Worst Performance by Bruce Willis in a Bruce Willis movie after the actor retired due to Aphasia.

3. Jonathan Armstrong shouts out to Tina Turner for advancing the cause of GDPR and explaining once and for all time ‘what’s love got to do with it.’

4. Karen Woody shouts out to the magic of Harry Potter World in Orlando have what she described as ‘awesome’ roller coaster rides, well worth the 3-hour wait in line.

5.Tom Fox rants Academy of Motion Picture Arts and Sciences for their incompetent response to Will Smith slapping Chris Rock at the Oscars and reminds us that workplace violence is never acceptable. 

The members of the Everything Compliance are:

  • Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com
  • Karen Woody – One of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu
  • Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com
  • Jonathan Armstrong –is our UK colleague, who is an experienced data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at armstrong@corderycompliance.com
  • Jonathan Marks is Partner, Firm Practice Leader – Global Forensic, Compliance & Integrity Services at Baker Tilly. Marks can be reached at marks@bakertilly.com

The host and producer, ranter (and sometime panelist) of Everything Compliance is Tom Fox the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.

Categories
Creativity and Compliance

Easier To Be Brave When You Aren’t Alone


Where does creativity fit into compliance? In more places than you think. Problem-solving, accountability, communication, and connection – they all take creativity. Join Tom Fox and Ronnie Feldman on Creativity and Compliance, part of the Compliance Podcast Network. In this episode, Tom and Ronnie begin a short series on provocative statements on compliance training and communications, followed by discussion. In this episode, why it is easier to be brave when you are not alone and Ronnie channels his inner Amy Poehler.
Resources:
Ronnie Feldman (LinkedIn)
Learnings & Entertainments (LinkedIn)
Ronnie Feldman (Twitter)
Learnings & Entertainments (Website)
60-Second Communication & Awareness Shorts – A variety of short, customizable, quick-hitter “commercials” including songs & jingles, video shorts, newsletter graphics & Gifs, and more. Promote integrity, compliance, the Code, the helpline and the E&C team as helpful advisors and coaches.
Workplace Tonight Show! Micro-learning – a library of 1-10-minute trainings and communications wrapped in the style of a late-night variety show, that explains corporate risk topics and why employees should care.
Custom Live & Digital Programing – We’ll develop programming that fits your culture and balances the seriousness of the subject matter with a more engaging delivery.
Tales from the Hotline – check out some samples.

Categories
Blog

The Slap Seen ‘Round the World and Compliance

It was the slap seen ‘round the world. It happened last Sunday night on the televised presentation of the 94thannual Oscars award ceremonies when Will Smith stormed to the stage after comedian Chris Rock made a joke about Smith’s wife’s lack of a full head of hair and, in front of audiences worldwide, delivered a slap to the face of Rock. Smith was incensed that, according to Emily Stedman, the  comedian’s remark that his wife’s shaved haircut was reminiscent of famous film character G.I. Jane. Smith’s wife, Jada Pinkett Smith, has been openly suffering with the hair loss condition Alopecia since 2018.
Smith later won the Best Actor Oscar for his portrayal of Venus and Serena Williams’ father Richard Smith in the movie King Richard. Smith did not apologize for his actions during his acceptance speech and did not do so until “one day on from the altercation. I would like to publicly apologize to you, Chris,” he wrote. “I was out of line and I was wrong. I’m embarrassed and my actions were not indicative of the man I want to be. There is no place for violence in a world of love and kindness.”” Rock’s only statement on the affair to date, according to Nicole Sperling and Julia Jacobs, writing in the New York Times (NYT), has been “I’m still kind of processing what happened,” Mr. Rock said, briefly addressing the topic everyone was talking about. He promised to discuss it in greater depth later. “It’ll be serious, it’ll be funny, but I’d love to — I’m going to tell some jokes.””
Apparently after the incident, the Academy of Motion Picture Arts and Sciences said, “that the actor Will Smith was asked to leave the Oscars ceremony after he slapped Chris Rock onstage Sunday night, but that the actor refused to go.” The Academy did not take any steps to physically remove Smith from the event. What lessons should every Chief Compliance Officer (CCO) and compliance professional draw from this matter?
Workplace Violence
First and foremost, violence at the workplace is never justified. What if this had happened at your office? What would you do? Would you allow the perpetrator of the violence to remain as your employee? I should certainly hope not. What if you are in a state which allows guns to be carried. Do you risk the perpetrator walking up and shooting a co-worker over a joke, in poor taste or otherwise? Unfortunately, workplace violence happens all too often.
What if the person attacked (Rock) did anything to defend themselves? In watching the clip of the slap, you will see Rock kept his hands behind him. What if he had raised his hands to defend himself and then the perpetrator shot him. In the state of Texas and Florida that would probably bring the ‘Stand Your Ground’ defense into play if the perpetrator said he thought the person he was about to attack was going to hit the perpetrator and the perpetrator actually acted to defend himself. You can see how quickly all this can spiral out of control.
Not only should you make clear that violence will never be tolerated at work, but you should use this opportunity to train about underlying causes and red flags of workplace violence. There is clearly history between Smith and Rock, the slap seen ‘round the world did not come out of nowhere. Metal health at the workplace can be as important as physical health. Every CCO should use this opportunity to reassess your company’s overall programs in these areas.
Institutional Justice
What about the Academy of Motion Picture Arts and Sciences decision not to remove Smith from the theater? The Academy was on actual notice that violence had been perpetrated but (apparently) took no action. Another comedian, Wanda Sykes, one of the hosts of Sunday’s telecast, said in an interview with Ellen DeGeneres “that the moment was “sickening” to her and that she thought Mr. Smith should have been escorted from the building instead of being allowed to stay and accept his Oscar.” She went on to add, “For them to let him stay in that room and enjoy the rest of the show and accept his award — I was like, how gross is this? This is just the wrong message.”
The Department of Justice (DOJ) made clear in the 2020 Update to the Evaluation of Corporate Compliance Programs that it expects a CCO and corporate compliance function to be the keepers of Institutional Justice in an organization. One of the tenets of this concept is that all employees must be treated fairly and equally, literally from the Board room to the shop floor. You can bet your bottom dollar that if an employee at the Dolby Theater in Los Angeles where the event was held had slapped an actor (or even a comedian) that employee would be escorted off the premises forthwith. The Academy certainly had the right and power to escort Smith off but failed to do so. Did their actions put Rock at additional risk? Possibly. What about the other attendees? I will leave that to your imagination.
What about actions by the Academy now to sanction Smith for his conduct? According to the NYT article, “The academy said that it had initiated disciplinary proceedings against Mr. Smith “for violations of the academy’s standards of conduct, including inappropriate physical contact, abusive or threatening behavior, and compromising the integrity of the academy.” It said that Mr. Smith would be given a chance to respond and that at its next board meeting, on April 18, it “may take any disciplinary action, which may include suspension, expulsion, or other sanctions.”” Stern stuff, or perhaps not, particularly if the Academy issues a stern statement to Smith “not to do it again.”