Tag: Data Analytics

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Data Driven Compliance Innovation in Compliance

Daniel Villani on the Using the Right Data

Data Driven Compliance, hosted by Tom Fox, is a podcast featuring an in-depth conversation about the uses of data and data analytics in compliance programs. In this episode, host Tom Fox visits Daniel Villani from Villani Analytics. Daniel has an extensive 15-year background in technology, specifically working with medium to large businesses. They discuss Enterprise Resource Planning (ERP) and Enterprise Performance Management (EPM) software, vendor selection, audibility, and ESG reporting. Daniel emphasizes the importance of data utilization and integration, offering solutions and advice on the best solutions to stay competitive. Listeners can learn more from Daniel’s YouTube channel, Villani Analytics, and LinkedIn profile.

Key Highlights

·      ERP & EPM Explained

·      Data Privacy and Security in Financial Technology Solutions

·      Ensuring Data Accuracy and Quality Assurance Through Governance

·      The Importance of Documentation in Vendor Selection

·      Utilizing Data Analytics to Get Insights

·      Benefits of Implementing Environmental, Social, and Governance Programs

·      Building Data Streams: Connecting Siloed Data for Success

Notable Quotes

1.     ” I laugh because it sounds completely imaginative, but you’d be surprised how many organizations and some of the leading organizations and fortune 500 ones are relying on somebody’s word that their numbers are okay.”

2.     “I take the, you know, the full unbiased approach where I’m happy to recommend the system that I don’t implement just because I don’t do it for the money that comes out of it. I do it to make sure that you get the right solution for your business.”

3.     “It’s also equally important to ensure that you have the documentation around your governance in place.”

4.     “The companies that are going to bring it together in the most meaningful way are the ones that are going to better compete in their industry.”

 Resources

Daniel Villani on LinkedIn

Villani Analytics

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Compliance Into the Weeds

Creating a Data Analytics Program

The award winning, 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. In this episode, Matt and I take a deep dive into data analytics. Tom and Matt provide information on how to capture the data within the enterprise and create a road map within the framework of DOJ’s guidance. Additionally, they cover how Excel can be used and suggest giving the data “spit and polish” in order to run it through analytics programs. Compliance into the Weed’s podcast is a must-listen for anyone needing information and strategies to excel in their work.

Key Highlights

·      The Implementation of Data Analytics Programs [00:03:21]

·      The Business Relationships and Risk Assessment of Data Collection [00:07:17]

·      The Benefits of Utilizing Internal Resources for Compliance Analytics [00:10:48]

·      Organizing and Utilizing Compliance Data [00:14:42]

·      Creating a Road Map with Excel [00:18:04]

Notable Quotes

1.     “We all talk about data handling. We all say it’s important. We go here a justice department official at some conference. He or she will talk about how important data analytics is how they use data analytics. And of course, if they in the public sector can afford to do it, then certainly, we in the private sector must be able to do it. Because government has no money and if they can do it, we must be able to do it.”

2.     “It’s easy to think it’s important in the abstract, but how are you actually going to do it? That’s the part that compliance officers need to think through.”

3.     “We’re really looking for outlier transactions. We’re looking for anomalous events of some kind. We’re also looking for trend analysis to see if big huge swaths of transactions are moving in a certain direction that might be troublesome.”

4.     “You need to be, I think, maybe more on your game with devising a good business case for data analytics. It’s easy to think it’s important in the abstract, but how are you actually going to do it?”

 Resources

Matt Kelly in Radical Compliance

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Blog

Dheeraj Thimmaiah on Getting Buy-In for the Use of Data Analytics

Data analytics are becoming an increasingly important part of compliance performance. But how can companies ensure they are utilizing this technology to its fullest potential? I recently visited with Dheeraj Thimmaiah, Global Director of Compliance Analytics at AB InBev, to explore how user experience is the key element to a successful compliance solution and how AB InBev has used BrewRite data analytics tool to turn compliance into a data-driven program. By focusing on middle management, AB InBev has helped drive user adoption and optimize decision-making. He will also explain how he has been able to evolve BrewRite to include features such as alerting users of sanctions-related activity and creating a Quarterly Ethics and Compliance Assurance Report.

Dheeraj suggested three steps you need to follow to garner user adoption of data analytics to facilitate:

  1. Understand your target audience and their mindset;
  2. Involve the users in the process of developing the tool; and
  3. Introduce the concept of data driven compliance with a report.

Understand your target audience and their mindset

The first step in implementing a data analytics tool successfully is understanding the target audience and their mindset. In the case of AB InBev and the development of Brew Right, this involved focusing on the middle management level, as they are the ones directly responsible for interacting with employees and ensuring the tool is used. Dheeraj explained how they worked to slowly introduce the concept of data driven compliance to the middle management and involve them in the journey by allowing them to be part of the end product. They also worked to show the business rationalization behind the tool and how it could help make their day-to-day jobs easier.

The evolution of BrewRite has also been an important part of understanding the target audience and their mindset. In other words, the User Experience or UX. Initially, BrewRite was designed with the focus on transaction monitoring and providing feedback to the machine learning model. However, the way users interact with the tool has changed with the introduction of alert mechanisms, allowing users to be proactive in identifying risks. AB InBev has also introduced the Quarterly Ethics and Compliance Assurance Report, which enables senior level managers to benchmark compliance areas across different regions and empower local fields to take corrective action.

Involve the users in the process of developing the tool

As Carsten Tams continually reminds us, it is always about the UX. Involving the users in the process of developing the tool is essential for successful adoption and use of the tool. When it comes to the development of BrewRite, AB InBev focused on the day-to-day managers who would be using the tool and saw them as a key target audience. They wanted to ensure that the tool was both simple and effective for the users. To do this, they went through a process of changing mindsets to increase adoption and involving the users in the technical processes of the tool’s maturity and evolution.

This ensured that the users were a part of the end product and allowed them to leverage the tool to its maximum value. Additionally, the development team worked to bring an overview to senior level managers by taking different regions, building measures with business leaders, and creating a Quarterly Ethics & Compliance Assurance Report. This allowed the local fields to have insights and take the right actions for corrections needed. By involving the users in the process of developing the tool, BrewRite is able to be successful and make an impact.

Introduce the concept of data driven compliance

Step 3 of the process is introducing the concept of data driven compliance with a Quarterly Ethics & Compliance Assurance Report. This step is an important part of the process, as it will help to ensure that the data analytics tool is being used effectively and efficiently by the users. The first part of this step is to understand who the target audience is. Dheeraj suggests that the target audience should be the day-to-day compliance officers and managers, as they are the ones who are closest to the business transactions that are happening and can leverage the tool to the maximum value.

The second part of this step is to provide a business rationalization for the tool beyond simply having to do it. Dheeraj explained that this was done at AB InBev by pointing to the organization’s transformation to a digitized and monetized way of decision making. The third part of this step is to focus on user adoption. A key mechanism is getting the users involved in the technical process of the maturity of the tool and even the evolution of the tool, so they will contribute to the end product. Finally, the fourth part of this step is to introduce the Quarterly Ethics & Compliance Assurance Report, which will provide senior level managers with a world map that benchmarks which areas are strong in a particular region and which areas require improvement. This will enable the local fields to take the right actions for corrections they need to do.

Data analytics are becoming increasingly important for organizations to remain compliant. Dheeraj and his team at AB InBev continue to show how a successful compliance solution begins with understanding the users and their mindset. By involving the users in the process of developing the tool, focusing on middle management, and creating a Quarterly Ethics and Compliance Assurance Report, AB InBev has been able to maximize the potential of the data analytics tool. By following the same steps and leveraging the right technology, any organization can achieve the same success.

Check out the full podcast with Dheeraj on the use of data analytics at AB InBev here.

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Innovation in Compliance

Creating the Insights Lab with Zachary Coseglia

In this insightful episode of the Innovation In Compliance podcast, Tom Fox welcomes Zachary Coseglia, the founder of the Ropes & Gray Insights Lab, to talk about the creation of the unique consultancy within the law firm. Zach dives into the challenges of building a team with diverse skill sets and backgrounds for a new function like the Insights Lab. He shares the value of data analytics for compliance, and how it can be used to improve investigations and understand patterns of behavior across the organization. Zach also highlights the complexities of working in-house, including managing relationships and understanding organizational intricacies. 

With over a decade of experience in the pharmaceutical industry, healthcare, and life sciences, Zach Coseglia built a strong background in investigations, compliance analytics, and digital compliance. During his time as head of investigations in Asia Pacific for Pfizer, he came up with the idea to create an analytics and behavioral science consultancy within a law firm, which led to the birth of the Insights Lab.

 

Key takeaways from the episode include:

  • Building an analytics consultancy within a law firm or compliance department requires investment in technology and human capital. Zach brought together people with diverse skill sets, backgrounds, and experiences to build a team that reflects the needs of the consultancy being created. He combined subject matter expertise of compliance and data analytics to build the team for the Insights Lab.
  • Zach believes that to build a successful analytics consultancy within compliance, it’s important to bring in people who have done this work in other industries. He stresses that they can bring unique perspectives and experiences that can drive innovation and progress within the organization.
  • The potential of data analytics to promote a better, stronger compliance program through identifying trends, patterns of behavior, and driving efficiencies.
  • Zach reflects on his experience working in-house and highlights the challenges of managing relationships and understanding organizational intricacies. He stresses the importance of effective relationship building and an intentional and strategic approach to building new capabilities or functions within an organization.
  • Compliance is a deeply human discipline that involves shaping human behavior through policies, procedures, training, and programs. Behavioral science, cultural psychology, and behavioral economics play a critical role in compliance and ethics work.
  • Compliance programs that only focus on rules are short-sighted.
  • Human-centered design is a powerful approach to building effective compliance programs that engage with people and amplify their voices.
  • The Insight Lab at Ropes and Gray is a consultancy, analytics, behavioral science, and creative consultancy that aims to combine multidisciplinary expertise under one roof.  The lab includes a team of lawyers, data journalists, ethics experts, journalists, and specialists in cultural psychology and behavioral science. The lab has expanded beyond compliance consulting to focus on areas such as organizational culture, diversity, equity, and inclusion, and environmental social governance (ESG).
  • The team’s multidisciplinary approach can shape the future of legal work, and the lab has the potential to be a large, powerful business for Ropes and Gray.
  • Law firms are embracing multidisciplinary teams and creating their own consulting groups, with some firms recognizing the value of analytics and behavioral science consultancies.
  • The legal profession could benefit from acknowledging that other disciplines can help make it stronger.
  • Zach Coseglia and Hui Chen have started a podcast called “There Has to Be a Better Way?” which is an innovation and curiosity podcast focused on identifying better ways and people who are finding their own better ways to solve organizational challenges, such as compliance, ethics, risk, diversity, equity, inclusion, and organizational culture.

 

KEY QUOTES:

“I think that there’s a huge opportunity for us to embrace behavioral science, to embrace a more scientific point of view, to embrace the world of data in ways that actually advance our profession.” – Zach Coseglia

 

“With all of the data we had available to us, we have this opportunity to understand human behavior in ways that go beyond just the rules.” – Zach Coseglia

 

“I have felt for a long time that compliance is being treated – has been treated – as this exclusively legal, regulatory, enforcement-related exercise oftentimes led by lawyers, when in fact, compliance is a deeply human discipline.” – Zach Coseglia

 

Resources:

Zach Coseglia at R&G Insights Lab | LinkedIn 

Ropes & Gray Insights Lab | Podcast: There Has to Be a Better Way?

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Data Driven Compliance

Dheeraj Thimmaiah on Creating and Using an Internal Data Analytics Tool

Data Driven Compliance is your go-to podcast to learn about the latest in business analytical tools. It is sponsored by Kona AI. In this series, host Tom Fox brings you insightful interviews with experts in digital analytics, cyber security, and more. In this episode, Tom sits down with Dheeraj Thimmaiah from AB InBev. Dheeraj talks about the development of their internal data analytics reporting tool called ‘BrewRite.’ This tool has a wide variety of applications, from its use in helping to create the compliance function’s ‘Quarterly Ethics and Compliance Assurance Report’ to alert users when activities are triggered and providing information in the case manager module. Tune in and join the conversation with Tom and Dheeraj as they talk about the future of technology and the power of data analytics in uncovering risks! 

Key Highlights

·      Using Data Analytics to Navigate the company’s compliance challenges [00:06:04]

·      AB InBev’s Internal Tool BrewRite.  [00:10:09]

·      Monitoring and Assessing Business Ethics and Compliance Risk via Quarterly Reports -[00:21:47]

 Notable Quotes

1.      “The first thing we wanted to see is, how do we kind of slowly introduce them to the concept of data program?”

2.     “For us, the words simple and effective, we want to see how people are taking their day-to-day jobs and making it much easier.”

3.     “At the end of the day, these are the people who are actually looking at a particular area, identifying the risk or mitigating risk. They’re the source of a lot of things that get done within the company. So it’s so important for us to focus on them as an audience because they’re the people who can leverage the tool to the maximum value and also, at the same time, provide us great input because the closest to the business and the transactions that are happening across the ground to evolve types of risk we are looking for so we can continue to progress.”

4.     “We want to build something like that internally, and we’ve really titled this the quarterly ethics of compliance assurance report.”

 Resources:

Connect with Dheeraj Thimmaiah on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn

Categories
Blog

Using Data Analytics to Create an Effective Compliance Program-Part 3

In this conclusion of a three-part blog post series, we are considering how to create an effective compliance program through the use of data analytics. I am joined in this exploration by Vince Walden, CEO of Kona AI and we are considering the requirements laid out by the Department of Justice (DOJ) in their recent pronouncements on best practices, as well as the key trends and lessons learned from enforcement actions. Finally, we will consider the speech by Kenneth Polite on the changes to the Corporate Enforcement Policy and how to meet those requirements using data analytics. Walden articulated 10 steps you need to follow:

  1. Assess a company’s conduct;
  2. Self-disclose;
  3. Know quickly if there is a problem or not;
  4. Have access to relevant sources of data;
  5. Conduct monitoring at the beginning and throughout the lifespan of the relationship
  6. Have an on-premise application;
  7. Look up vendors and transactions quickly;
  8. Run data through a library of corruption and fraud tests;
  9. Look at a predictive model and see if it meets the profile of an improper payment; and
  10. Have visibility into data almost at their fingertips.

The 7th step involves having an on-premise application for data analytics. This is an important step, as it allows companies to keep their data secure, while still being able to use predictive analytics and other compliance monitoring tools. You should consider a platform designed to be hosted and managed as a service, meaning that companies can utilize the platform without having to move large amounts of data around each month.

Under steps 8 & 9, you should run your data through a variety of libraries and test but a key is doing so without compromising their data privacy. Using data analytics to identify anomalous payments that may be indicative of corruption or fraudulent activities. This will help your organization to meet the DOJ’s expectations for an effective compliance program. It helps improve business processes, increase transparency, and reduce the risk of improper payments. Additionally, such a data analytics platform can be used to benchmark an individual company’s compliance program by identifying attributes of an improper payment.

Finally under Step 10, your organization should use a tool which also supports data visualization and dashboards that help companies analyze their compliance data in real time by quickly identifying any irregularities or anomalies that could be indicative of corruption or fraudulent activity. Your system should also provides support for automated reporting, allowing companies to easily generate reports on their compliance program. This can help companies identify areas of improvement, as well as any potential issues that should be addressed. Such visibility can extend up to the Board of Directors level which will enhance your reporting up the organization and facilitate the Board’s requirement for oversight under the Caremark Doctrine.

This approach can be used to facilitate risk assessments, helping companies to ensure that their compliance programs are up to the standards set by the DOJ. Through ongoing monitoring, it can be  used to track activities and progress in compliance over time, providing companies with a better understanding of their compliance processes, ensuring an effective way to demonstrate your compliance program is up to the standards set by the DOJ.

Data driven compliance decisions are essential for companies to meet the expectations of the DOJ This includes having access to relevant sources of data, conducting monitoring at the start and throughout the lifespan of a relationship, having an on-premise application, and self-disclosing any potential violations to the DOJ. A data analytics platform that can help companies meet these expectations, as it will provide advanced analytics and compliance monitoring that allow companies to quickly identify areas of risk and anomalies in their data. Additionally, the platform can be used to collaborate with other companies to gain insights into attributes of an improper payments to prevent fraud or even simple over-payment of vendor invoices.

Perhaps there is no better example of a data driven approach to compliance in meeting the DOJ expectations than in the 2022 ABB, Foreign Corruption Practices Act enforcement action. In it, ABB had notified the DOJ it wanted to meet and had scheduled a meeting but before ABB could come in and self-disclose, the story of ABB corruption in South Africa broke in the local news. However the DOJ credited ABB for detecting the violations and notifying the DOJ it was coming in. This went a long way towards the excellent result ABB was able to achieve in its resolution with the DOJ.

Listen to Vince Walden on Data Driven Compliance

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Blog

Using Data Analytics to Create an Effective Compliance Program-Part 2

In this three-part blog post series, we are ruminating on how to create an effective compliance program through  the use of data analytics. I am joined in this exploration by Vince Walden, CEO of Kona AI and we are considering the requirements laid out by the Department of Justice (DOJ) in their recent pronouncements on best practices, as well as the key trends and lessons learned from enforcement actions. Finally, we will consider the speech by Kenneth Polite on the changes to the Corporate Enforcement Policy and how to meet those requirements using data analytics. Walden articulated 10 steps you need to follow:

  1. Assess a company’s conduct;
  2. Self-disclose;
  3. Know quickly if there is a problem or not;
  4. Have access to relevant sources of data;
  5. Conduct monitoring at the beginning and throughout the lifespan of the relationship
  6. Have an on-premise application;
  7. Look up vendors and transactions quickly;
  8. Run data through a library of corruption and fraud tests;
  9. Look at a predictive model and see if it meets the profile of an improper payment; and
  10. Have visibility into data almost at their fingertips.

Under Step 4, companies must quickly analyze their data quickly and efficiently to determine if they need to self-disclose any potential issues. By sharing the attributes across corporate siloes, companies can make their individual models perform better and improve their compliance programs. This allows companies to access the data quickly and easily, allowing them to identify potential risks and areas of improvement. It also provides insights into the effectiveness of compliance programs, allowing companies to make better informed decisions concerning their compliance.

Overall, having access to relevant sources of data is essential for an effective compliance program. Companies can gain access to data through on-premise platforms. By leveraging these sources of data, companies can ensure their compliance programs are up to date and compliant with applicable laws and regulations.

Step 5 is to conduct monitoring at the beginning and throughout the lifespan of any business  relationship or transaction cycle. This is an important step as it allows a company to identify potential issues with their compliance program and take corrective action. Monitoring should be conducted at the beginning of a relationship or transaction to ensure that all parties understand the expectations and that there is no potential for criminal activity. Monitoring should continue throughout the relationship as well, as this will allow a company to identify any changes in behavior or activity that could indicate a potential problem. This can be used to gain insights into a vendor’s financial and transactional data, which is often a key indicator of future or even potential compliance violations.

Having access to relevant sources of data and conducting monitoring throughout the lifespan of a third-party relationship will help an organization meet the expectations set by the DOJ for an effective compliance program. With the DOJ’s recent announcement of amendments to the Corporate Enforcement Policy, companies have even greater incentive to self-disclose if they uncover potential violations, all of which demonstrates an effective compliance program. A data analytics platform can help companies quickly identify understanding of the risks and monitoring these relationships regularly, companies can ensure that they are compliant with all applicable regulations and review potential issues.

With a comprehensive view of their activities, organizations can quickly identify any changes in activities, such as unusual patterns of payments or activities, which could indicate a potential problem. Through visibility into third party activities and transactions, companies are able to gain a better understanding of the compliance risk associated with their third-party relationships. Moreover, businesses have a mechanism to identify any financial or transactional red flags.

Interestingly Walden advocates having an “on-premise application” for data analytics, which is he step 6.  He believes “This is an important step, as it allows companies to keep their data secure, while still being able to use predictive analytics and other compliance monitoring tools.” It can be hosted and managed as a service, “meaning that companies can utilize the platform without having to move large amounts of data around each month.” This helps companies to gain insights from the model without compromising their data privacy. Furthermore, this platform can be used to identify anomalous payments that may be indicative of corruption or fraudulent activities.

Join us tomorrow where continue conclude our exploration of using data analytics to create an effective compliance program.

Listen to Vince Walden on Data Driven Compliance

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Blog

Using Data Analytics to Create an Effective Compliance Program-Part 1

I recently had the opportunity to visit with Vince Walden for the inaugural episode of the newest podcast on the Compliance Podcast Network, Data Driven Compliance. Walden is a compliance professional with 15 years of experience, who left his day job and founded Kona AI, a cutting-edge innovation for compliance professionals. Kona AI is an on-premise platform to build advanced analytics and compliance monitoring that aligns with the DOJ’s expectations.

Over this multi-part blog post series, I will be discussing how to create an effective compliance program through  the use of data analytics by considering the requirement laid out by the Department of Justice (DOJ) in their recent pronouncements on a best practices, as well as the key trends and lessons learned from enforcement actions. Finally, we will consider the speech by Kenneth Polite on the changes to the Corporate Enforcement Policy and how to meet those requirements using data analytics.

It is important for compliance professionals to make informed decisions that are driven by data to ensure that the compliance program is effective and efficient. Data-driven decisions enable compliance professionals to make decisions that are backed by evidence, allowing them to make informed decisions that are based on facts and figures rather than assumptions or guesswork. Without data, compliance professionals would be unable to accurately measure the effectiveness of their compliance program or identify potential risks or areas of non-compliance.

Data-driven decisions also allow compliance professionals to identify areas of strength and opportunities for improvement. By utilizing data, they can identify trends, patterns, and correlations that can help them understand the underlying causes of compliance issues and formulate strategies to address them. Furthermore, data-driven decisions are more likely to be accepted and supported by stakeholders, as they are based on facts and have been thoroughly researched and analyzed. Ultimately, data-driven decisions ensure that compliance professionals are making informed decisions that are in the best interests of their organization. Walden articulate 10 steps you need to follow:

  1. Assess a company’s conduct;
  2. Self-disclose;
  3. Know quickly if there is a problem or not;
  4. Have access to relevant sources of data;
  5. Conduct monitoring at the beginning and throughout the lifespan of the relationship
  6. Have an on-premise application;
  7. Look up vendors and transactions quickly;
  8. Run data through a library of corruption and fraud tests;
  9. Look at a predictive model and see if it meets the profile of an improper payment; and
  10. Have visibility into data almost at your fingertips.

Under Step 1, the assessing of your company’s conduct begins with understanding the DOJ’s  expectations for an effective compliance program. Companies should have policies and procedures in place that enable them to access relevant sources of data, conduct ongoing monitoring of third-party relationships, and hold compliance officers accountable for the effectiveness of the compliance program. Additionally, companies should ensure they have the necessary technology in place to be able to quickly conduct an analysis of their data to determine if a self-disclosure is necessary. By taking these steps, companies can ensure they are meeting the DOJ’s expectations and are in a better position to successfully self-disclose if necessary.

Finally, assessing a company’s conduct should also involve an analysis of the company’s external communications. Companies should have a process in place for responding to inquiries from the public, media, and other stakeholders, and they should ensure that all communications are accurate and timely. Additionally, companies should ensure they are regularly engaging with their stakeholders to keep them informed of any changes in their compliance policies or procedures. By taking these steps, companies can ensure they are engaging in effective external communications that foster trust and confidence in their compliance program.

Self-disclosure is a key step in achieving an effective compliance program. Walden lists this as Step 2. It is important for companies to to demonstrate their commitment to compliance and avoid possible enforcement actions. Recently Kenneth Polite reiterated the importance of self-disclosure and discussed the changes to the corporate enforcement policy. Self-disclosure is viewed as a sign of good faith and can have a major impact on the DOJ’s decision to pursue or not to pursue a case.

However, to meet this requirement under the DOJ Corporate Enforcement Policy, companies need to have access to their data quickly in order to determine if self-disclosure is necessary. This means having an on-premises platform that can quickly search through transactions, identify potential corrupt payments, and compare them to a predictive model. This will demonstrate that they have an effective compliance program for the DOJ to consider them for leniency. But it requires having access to relevant sources of data and conducting monitoring throughout the relationship with third parties. Having an analytics platform can help companies detect anomalies in their data and identify patterns in the data that can help create an effective compliance program.

In addition to self-disclosure, companies must also take steps to ensure that their compliance program is effective and meets the standards of the DOJ. Companies should have access to a streamlined technology platform that helps them manage their compliance efforts. This platform should have tools to monitor third-party relationships, identify suspicious activity, and monitor compliance efforts. An effective compliance program also requires ensuring that employees receive proper training and understanding of the company’s policies and procedures. Companies should also have an audit system in place to regularly check that their compliance program is meeting the standards of the DOJ. This audit system should include periodic assessments of the compliance program and regular reviews of third-party relationships.

Of course, if you do not know you have a problem, you organization cannot self-disclose and cannot meet the mandates to demonstrate an effective compliance program. Hence under Step 3, an organization must understand if there is a problem or not which warrants self-disclosure.  With the right technology in place, companies can monitor their compliance efforts and ensure that they are meeting the expectations of the DOJ. Additionally, companies should ensure that employees are properly trained on the company’s policies and procedures. Taking these steps can help create an effective compliance program that meets the expectations of the DOJ.

Join us tomorrow where continue our exploration of using data analytics to create an effective compliance program.

Listen to Vince Walden on Data Driven Compliance.

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Data Driven Compliance

Vince Walden on Taking Your Compliance Program to the Next Level Through Data Analytics

Welcome to Data Driven Compliance, the newest edition to the Compliance Podcast Network. In this podcast we will discuss how to use data to improve and enhance the effectiveness of your compliance program, creating greater business efficiency, all leading to more return on the investment for your compliance regime. Join host Tom Fox as he explores how data will drive your compliance program to the next level. This podcast is sponsored by Kona AI.

In our inaugural episode, I visit with Vince Walden, a forensic data analytics expert and the CEO of Kona AI, a cutting-edge compliance monitoring platform. He has a long history of consulting for white collar crime investigations and forensic data analytics. He has worked on high profile data analytical projects such as Anheuser Busch’s BrewRite platform.

Key Highlights

  1. Discover how data analytics can be used to fight global corruption and identify improper payments.
  2. Learn how data transparency and cost-effectiveness are paramount to an effective compliance program.
  3. Investigate how data analytics platforms can be used to keep organizations out of trouble and make the business better.

Notable Quotes

“Compliance professionals are now being looked at to help spearhead this initiative around business transparency, especially into their third parties or their employee activities, and sometimes even customers or distributors.”

“Getting companies to commit resources to it, it needs to be cost effective.”

“Data analytics is always a topic at the conferences, at the conferences on social media, et cetera. Gaining insights into transparency in your data is paramount to an effective compliance program.”

“Being able to make the business better by adding cash back onto the balance sheet and stopping improper payments or finding errors or stopping a corrupt payment before it’s paid, that’s all making the business better.”

 Resources:

Connect with Vince Walden on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn

Categories
31 Days to More Effective Compliance Programs

Day 1 – What 2022 Brought To Compliance Programs

Welcome to a special podcast series on the Compliance Podcast Network, 31 Days to a More Effective Compliance Program. Over these 31 days series in January 2023, I will post a key part of a best practices compliance program daily. By the end of January, you will have enough information to create, design or enhancement a compliance program. Each podcast will be short, at 6-8 minutes, with three key takeaways you can implement at little or no cost to help update your compliance program. I hope you will plan to join each day in January for this exploration of best practices in compliance.

2022 was a very significant year for every compliance practitioner and compliance program. While there was a paucity of corporate FCPA enforcement actions, three actions were significant, with multiple lessons for the compliance professional. In ABB, we learned about the costs of a corrupt culture and recidivism. In Glencore, we saw what happens to a company that engages in worldwide systemic bribery and corruption. Finally, in Stericycle, the company had a culture of corruption burned into the DNA of the LATAM business unit, which was so thorough that it was documented via bribery spreadsheets and analysis of revenue based on payments of bribes in LATAM. Yet even with this corrupt culture, the Stericycle enforcement action demonstrated how a company could take advantage of the discounts available under the FCPA Corporate Enforcement Policy by extensive cooperation and remediation during the pendency of the FCPA investigation, as the company obtained a 25% reduction off the bottom of the applicable US Sentencing Guidelines fine range.

September saw the announcement of a significant refinement of Department of Justice (DOJ) enforcement policies on the Foreign Corrupt Practices Act (FCPA) enforcement and corporate compliance programs. It was encapsulated in the Monaco Memo and a speech by Deputy Attorney General Lisa Monaco announcing the Monaco Doctrine. There was additional commentary by Principal Associate Deputy Attorney General Marshall Miller in a speech and by Assistant Attorney General Kenneth A. Polite. Every compliance professional should know them in detail as they significantly turn the heat up on corporate compliance programs. The Monaco Memo is further clarification and guidance for line prosecutors when considering whether to put a monitor in place. While we have seen these factors in a disparate manner, in disparate places, here they are in writing. Perhaps the greatest significance is that the Memo sets down all these matters in writing, which leads to a blueprint for DOJ thinking and a roadmap for anyone who finds themselves in an FCPA investigation or enforcement action. Finally, the Monaco Memo cemented the new DOJ requirement for CCO certification of compliance programs at the end of a resolution.

The final key event for compliance in 2022 was very much under the radar. The DOJ hired Matt Galvan to help develop data analytics expertise and capability for the FCPA Unit and the Fraud Section. Galvan was most recently the CCO at AB InBev and perhaps the top compliance professional in data analytics for a corporate compliance program. It will be most interesting to see where Galvan and the DOJ take this initiative, but it does portend the increasing use of data analytics in FCPA enforcement and compliance.

 Three key takeaways:

1. Key FCPA cases in 2022 were Glencore, ABB, and Stericycle.

2. The Monaco Memo refocused the DOJ’s efforts on FCPA and other white-collar crime and put the heat on compliance programs.

3. The DOJ’s hiring of Matt Galvan will focus on the DOJ’s expertise in data analytics and their employment in compliance programs.