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31 Days to More Effective Compliance Programs

Third-Parties as Compliance Innovation Partners

It is universally recognized that third parties are your highest FCPA risk. Could you turn your third party from liability under the FCPA to an innovation partner for your compliance program? This is an area that only a few compliance professionals have mined, but once again, in compliance, you are only limited by your imagination. In a Supply Chain Management Review article by Jennifer Blackhurst, Pam Manhart, and Emily Kohnke, entitled “The Five Key Components for Supply Chain Innovation,” the authors identified five components common to the most successful innovation partnerships. They are:

Don’t settle for the status quo. This means you should not settle for simply the status quo in compliance.

Hit the road to hit your metrics. To understand your compliance risk from third parties, you must get out of the ivory tower and hit the road.

Send prospectors, not auditors. While an audit clause is critical in any third-party contract, from a commercial and FCPA compliance perspective, you can establish a “point of contact as an innovation manager for your third parties.”

Show and tell. As with all relationships, trust plays an important role in third-party compliance innovation, as “Firms in successful innovations discussed a willingness to share resources and rewards and to develop their partners’ capabilities.”

Who’s running the show? This means “who is doing what, but also what each firm is bringing to the relationship regarding resources and capabilities.”

Three key takeaways:

  1. Use your third parties as innovators to assist your compliance program.
  2. Change your thinking about third parties and make them your partners.
  3. Do not settle for the status quo.
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Looking Back on 9/11

Looking Back at 9/11: Eric Feldman – A Wake Up Call

Eric Feldman is Tom Fox’s guest on this episode of Looking Back at 9/11. Eric is the Senior Vice President and Managing Director at Affiliated Monitors, a company that deals with monitoring large and small companies in the government contracting, construction, engineering, manufacturing, and financial services. He also conducts assessments of corporate ethics and compliance programs across many countries. Eric joins Tom to talk about the impact the events of 9/11 had on the role of Inspector General.

The Impact of 9/11 on The IG’s Role
Eric explains to Tom that 9/11 was the most informative time of his career, and the careers of many other Inspector Generals. It was a refocusing moment for everyone. Eric got to work within the oversight function, but as part of the mission he was overseeing. “That focus on mission was it for me,” he tells Tom. Eric expresses that understanding the mission helped make him a better Inspector General. IGs all over the world became more concerned with looking at the broader picture of how funds were being used at their agencies to fight the war on terror, instead of the minutiae of looking at time and attendance reporting.

The Importance of The IG Now
Tom asks Eric to elaborate on how the IG’s role rose in prominence post-9/11. Eric explains that government IGs became “part of the team” in different ways. There is more collaboration now across the agencies that IGs oversee. There is also independence: Eric expresses that there must be a balance between collaboration and independence. IGs are especially important as they ensure that the dollars being spent on the war and mission are being spent properly.

A Wake Up Call of Unity
Eric reflects that 9/11 was a wake-up call for the United States. The country came together, and there was a level of unity and patriotism, as well as a sense of duty that overtook politics. Eric hopes that the people can return to that unity without another catastrophe. 

Resources
Eric Feldman | LinkedIn | Twitter
Affiliated Monitors

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Blog

Looking Back on 9/11: Eric Feldman – How 9/11 Changed the Role of the IG

This coming Saturday is the 20th anniversary of the attacks upon America on September 11, 2001. Like most Americans, this was the seminal event in the history of our country. I have been thinking a lot about that date and the anniversary; even more so with the fall of Afghanistan and the evacuation from Kabul. I wanted to do something to commemorate this anniversary, so I decided to do a podcast series featuring the personal stories of persons in the compliance field with their thoughts about what the date of 9/11 means to them, how it changed our profession and their thoughts looking back some 20 years later. The lineup for this week is:

  • 6 – Gabe Hidalgo
  • 7 – Juan Zarate
  • 8 – Alex Dill
  • 9 – Eric Feldman
  • 10 – Scott Moritz
  • 11 – John Lee Dumas

For this episode of Looking Back at 9/11, I visited with Eric Feldman, Senior Vice President and Managing Director at Affiliated Monitors, Inc. (AMI), a company that deals with monitoring large and small companies in government contracting, construction, engineering, manufacturing, and financial services. AMI is also the sponsor of the Looking Back on 9/11 podcast series. Feldman also conducts assessments of corporate ethics and compliance programs across many countries. Eric talked about the impact the events of 9/11 had on the role of Inspector General (IG) at the CIA.
On the morning of September 11, 2001, at 7:30 AM, Eric was in the morning staff meeting at the CIA. Then Director George Tenet was en route to the Headquarters. An assistant of Director Tenet came into the conference room and announced that a plane had just hit the World Trade Center. Feldman related that although it “was unclear what was going on at that point before the second plane hit, everyone in that room was quite certain what was going on because of reporting that had gone on before that.” From that point it was “battle stations and you had never seen people snap to attention and leave as quickly as that.”
Feldman went back downstairs back to his office where he watched the second plane hit the World Trade Center. At that point, Feldman was scheduled to be heading to the White House for a meeting of agency IGs to meet on the President’s Council on Integrity and Efficiency. As he could not get in touch with anyone at the White House, he got into a car and drove down. As he was driving down George Washington Parkway, he could see the smoke coming out of the Pentagon. Feldman said, “it was clear we needed to go back, and we made a U-turn on the cross, the median on the GW Parkway, which is a quite a feat, and headed back toward CIA headquarters. As we’re coming into the compound, people are rushing out of the compound on foot, which was somewhat disconcerting. At that point, of course, there were all kinds of rumors, about the next plane, which ultimately crashed in Pennsylvania, but they thought would, could potentially be hitting the agency. It was chaos.”
9/11 greatly changed the role of IGs. Feldman noted, “it was the most informative time of my career, and the careers of many other Inspector Generals. It was a refocusing moment for everyone.” Feldman got to work within the oversight function, but as part of the mission he was overseeing. “That focus on mission was it for me”. Feldman went to work for John Brennan in an operational role which Feldman said helped make him a better IG, “as part of the mission that we were overseeing, and it gave me a renewed sensitivity to why we’re there in the first place, IGS, auditor’s, compliance officers need to understand the mission and the organization that they are overseeing.” Feldman believes that IGs all over the world became more concerned with looking at the broader picture of how funds were being used at their agencies to fight the war on terror, instead of the minutiae of looking at time and attendance reporting.
We then turned to the how the IG role changed post-9/11. Government IGs became “part of the team” in different ways. This new focus fostered more collaboration across the agencies that IGs oversee. There is also independence: Eric expressed that there must be a balance between collaboration and independence. IGs are especially important as they ensure that the dollars being spent on the war and mission are being spent properly. Feldman believes there can be both collaboration and independence by IGs, that these “are not mutually exclusive terms. I think that IGs across the government became more collaborative and, therefore, I think much more effective in doing what they’re doing.” He also said that the other thing that happened, particularly in places like the CIA and Defense Department and even within the greater defense community, is that the IGs became very important in ensuring that all of the dollars that were needed to be spent on the war and related mission expenditures were spent properly.
We concluded by Feldman reflecting back on 20 years after the initial attacks on 9/11. He reflected that 9/11 was a wake-up call for the United States. The country came together, and there was a level of unity and patriotism, as well as a sense of duty that overtook politics. It was so good to see. He said, “I think we’ve lost that. And I wish that we could get refocused without another catastrophe on what’s important in this country and the tribalism, as we all know, is just way out of hand. And I yearn for that feeling, that we were one country, solidly behind a single mission to defend ourselves.” He hopes that the people can return to that unity without another catastrophe.
Please check out each of the podcasts this week. They will post at 6 AM CT on the Compliance Podcast Network and JDSupra and midnight on Innovation in Compliance, YouTube, iTunes and Spotify. Tomorrow Scott Moritz will join me to discuss how the mission of the FBI changed, literally overnight.

Categories
31 Days to More Effective Compliance Programs

Gap Analysis


A gap analysis is a method of assessing the differences in performance between a business’ internal controls to determine whether business requirements are being met and, if not, what steps should be taken to ensure they are met successfully. Moreover, it is a determination of the degree of conformance of your organization to the requirements of an internal controls standard. A gap analysis is mainly a document review or a “show me the evidence” type activity, evidence which usually will come in the form of a record or document. During a gap analysis, there is some auditing accomplished, through key stakeholders providing the evidence they may have – or not – for each of the requirements set forth in the relevant internal controls standard. In this episode, I am joined by AMI’s Eric Feldman to explore this topic.
3 Key Takeaways

  1. Now is the time for a gap analysis.
  2. Add a Fraud Risk Assessment to your gap analysis.
  3. Culture is a foundational internal control.
Categories
Compliance and Coronavirus

Eric Feldman on Culture, Governance and Compliance


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 the role of the Board of Directors in establishing corporate culture during the time of Coronavirus, corporate governance issues and compliance in the Supply Chain during Covid-19.
For more information on Affiliated Monitors, Inc. check out their website here.

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The Ethics Movement

Eric Feldman on the CCO’s Role in Performance Management that Drives Employee Behavior

CONVERGE is in its 4th year of bringing together the world’s leading companies for 2 days of dynamic speakers, thought-provoking breakout sessions, and opportunities to connect with like-minded professionals. You will leave the conference with new resources and best practices allowing you to continue the hard work of driving ethics to the center of your business. In today’s episode I visit with Eric Feldman, SVP at Affiliated Monitors, Inc. and visit about his talk, the CCO’s Role in Performance Management that Drives Employee Behavior.
Employee incentives, bonuses, and promotions are all great motivators, right? Wrong! In this session Eric Feldman explains how an innocent incentive program can bring down a company. Perverse incentives are at the root of so many misconduct cases. Learn how you can play a value-added role in corporate performance management processes.
For more information on Converge19, click here.