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FCPA Survival Guide

FCPA Survival Guide: Step 5 – Data Analytics

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the importance of data analytics as a key part of any remediation and in today’s compliance regimes.

Tom Fox and Nick Gallo are back to discuss the evolving role of data analytics in compliance, highlighting its transition from a cutting-edge tool to a best practice and soon-to-be table-stakes requirement. They review the SAP and Albemarle FCPA  enforcement actions to illustrate points where data analytics played a pivotal role in remediation efforts. They look at the foundational aspects of data analytics, paralleling personal finance management to underline its fundamental importance in both personal and professional contexts. Some of the key uses of data analytics are risk identification, response, compliance program testing, and reporting, as outlined by Andrew McBride, a recently retired chief ethics and compliance officer. They conclude by stressing the importance of data analytics in demonstrating program effectiveness and underscore the DOJ’s interest in data-driven evidence of compliance program remediation.

Key Highlights and Issues

  • The Evolution and Importance of Data Analytics
  • Understanding Data Analytics Through Everyday Examples
  • Practical Approaches to Implementing Data Analytics
  • The Role of Data Analytics in Compliance Program Testing and Reporting
  • Personalizing Data Analytics for Program Effectiveness

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

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FCPA Survival Guide

FCPA Survival Guide: Step 4 – Root Cause Analysis

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement that your remediation begins with a root cause analysis.

In this episode, host Tom Fox and co-host Nick Gallo discuss the importance of conducting a root cause analysis in compliance programs, particularly in light of the recent FCPA enforcement actions highlighting its significance. They use SAP’s approach to root cause analysis as a prime example of effectively identifying and remedying the underlying causes of compliance failures rather than merely addressing symptoms. They relate the human tendency to stop at superficial answers and the importance of discipline in continually asking ‘why’ to uncover true or ‘root’ causes. This approach satisfies regulatory expectations and builds a robust compliance program to prevent future violations. They underline the importance of storytelling in compliance, framing the root cause analysis and subsequent remediation efforts in a narrative that resonates with internal and external audiences, including regulators.

Key Highlights and Issues:

  • The Importance of Root Cause Analysis in Compliance
  • Human Nature and the Challenge of Deep Analysis
  • DOJ’s Expectations
  • The Art of Storytelling in Compliance

 Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

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FCPA Survival Guide

FCPA Survival Guide: Step 3 – Extensive Remediation

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement for extensive remediation.

Tom Fox and Nick Gallo are back to look at the importance of extensive remediation in compliance, particularly in the context of the FCPA enforcement actions. They highlight three enforcement actions – ABB, Albemarle, and SAP – to demonstrate how companies have implemented effective remediation strategies. ABB’s approach included a comprehensive data analytics program and cultural changes led by Chief Integrity Officer Natalia Shehadeh. The DOJ’s recognition of data analytics in the Albemarle and SAP cases signals a shift from cutting-edge practices to standard expectations in compliance. The episode also delves into the transformation of business models as a form of remediation, with Albemarle and SAP making significant changes to their sales strategies to manage risks better and ensure direct customer relationships. Through these discussions, Tom and Nick emphasize that extraordinary remediation is about authentic efforts to improve compliance and reduce risk, not just fulfilling minimal requirements.

Key Highlights and Issues

  • Exploring ABB’s Compliance Remediation Strategy
  • Beyond Checking the Box: A Deep Dive into Compliance Remediation Mindset
  • The Power of Data Analytics in Compliance Remediation
  • Transforming Business Models for Better Compliance Remediation

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

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FCPA Survival Guide

FCPA Survival Guide: Step 2 – Extraordinary Cooperation

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement of extraordinary cooperation.

This episode highlights the definitions of full cooperation and extraordinary cooperation from a law enforcement perspective, emphasizing the advice from Kenneth Polite and Deputy Attorney General Lisa Monaco on acting ‘swiftly and without delay.’ They explore strategies for accelerating investigations without compromising quality, including leveraging technology, ensuring a well-defined process, and engaging the right people. They emphasize the DOJ’s demand for immediacy, consistency, and impact in investigations, linking efficient, real-time processes with the broader goal of compliance and remediation. The discussion also touches on managing messaging apps and the significance of preparation and proactive processes to meet the Department of Justice’s expectations effectively.

Key Highlights and Issues:

  • Defining Extraordinary Cooperation and Its Challenges
  • The Importance of Real-Time Systems in Investigations
  • Strategies for Efficient and Effective Investigations
  • Leveraging Technology, Process, and People for Speed
  • The DOJ’s Expectations: Immediacy, Consistency, and Impact
  • The Process Nature of Compliance and Investigation

 Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

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FCPA Survival Guide

FCPA Survival Guide: Step 1 – Self-Disclosure

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination.

All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives.

This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action.

Today, we discuss the DOJ mandate of timely self-disclosure.

The first lesson in the FCPA Survival Guide is the DOJ’s emphasis on self-disclosure by companies in legal scenarios involving misconduct. Highlighted through the cases of ABB and others, Tom and Nick illustrate the substantial financial leniency the DOJ offers to companies that proactively self-disclose their misconduct versus those that do not.

The DOJ emphasizes the timing of self-disclosure in addition to the self-disclosure itself. Through conversations with experts and analysis of specific cases, Tom and Nick demonstrate the DOJ’s strategy to incentivize self-disclosure and the significant financial implications of either failing to disclose or disclosing in a timely and genuine manner.

Key Highlights and Issues:

  • The Importance of Self-Disclosure in DOJ Cases
  • Analyzing the ABB Case: Lessons on Self-Disclosure
  • DOJ’s Clarity and Intent in Compliance and Self-Disclosure
  • The Critical Timing of Self-Disclosure: The Albemarle Case Study
  • Financial Implications of Failing to Self-Disclose: The SAP Example
  • Conclusion: The DOJ’s Priority on Self-Disclosure

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

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FCPA Survival Guide

FCPA Survival Guide – Introduction

How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action.

The Department of Justice (DOJ) has been unequivocal in its expectations for any company facing an FCPA enforcement action. This guide is tailored for compliance professionals and business executives who are part of such an investigation. It outlines the necessary steps to secure the most favorable resolutions, offering a glimmer of hope even in the most daunting circumstances. Since the introduction of the FCPA Corporate Enforcement Policy, the default position for any company that self-discloses a potential FCPA violation to the DOJ is that of a declination. This policy provides a significant advantage, even if a company does not self-disclose or there are aggravating factors, as it allows for substantial discounts from the DOJ. In the words of the DOJ, this guide details the actions a company can take to reduce any fine or penalty for an FCPA violation, providing a clear path to a more favorable outcome.

In this 10-part podcast series, we will examine the following tactics for reducing potential exposure if your company finds itself in the FCPA crosshairs:

1.     Self-Disclosure.

2.     The Need for Speed

3.     Extensive Remediation

4.     Root Cause, Risk Assessment and Gap Analysis.

5.     Data Analytics.

6.     Clawback and Holdbacks.

7.     Change in sales models.

8.     Enhancement of Compliance.

9.     Internal Controls.

10.  Investigative Protocol

Resources:

Nick Gallo on LinkedIn

Ethico

The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action

Tom

Instagram

Facebook

YouTube

Twitter

LinkedIn