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Trekking Through Compliance

Trekking Through Compliance – Episode 36 – Risk Management Lessons from Catspaw

In this episode of Trekking Through Compliance, we consider the episode Catspaw, which aired on October 27, 1967, and occurred on Star Date 3018.2.

Strange things happen to a landing party consisting of Jackson, Sulu, and Scotty when they beam down to planet Pyrus 7. When Kirk, Spock, and McCoy beam down to investigate, leaving DeSalle in command and Chekov as his sidekick, they are enveloped in fog. They also detect multiple life readings, even though the Enterprise’s sensors only detect the landing party. They are all captured by Korob and Sylvia.

Meanwhile,  Enterprise is breaking free through DeSalle’s efforts. Korob sets Kirk and Spock free and tells them to leave immediately because he can no longer control Sylvia. Kirk grabs Korob’s scepter, and after fending off attacks from McCoy, Scott, and Sulu, Kirk tells Sylvia that he has the scepter. Kirk breaks the scepter in front of Sylvia. The castle vanishes, and Sylvia and Korob appear as the bizarre blue and yellow puppet-like alien beings they are. Unable to survive in this galaxy without the transmuter, they shrivel up and melt away, and Sulu and Scott are returned to normal.

Commentary

The story follows a landing party encountering strange, supernatural events on planet Pyrus 7, leading to valuable compliance lessons. Key takeaways include maintaining situational awareness, establishing effective incident response, identifying and mitigating supply chain vulnerabilities, fostering a culture of skepticism, prioritizing resilience, and empowering cross-functional collaboration. The episode uniquely ties the plot’s elements to practical compliance and risk management learning.

Key Highlights

  • Story Synopsis
  • Fun Facts and Production Notes
  • Narcissism in Cat’s Paw
  • Risk Management Lessons

Resources

Excruciatingly Detailed Plot Summary by Eric W. Weisstein

MissionLogPodcast.com

Memory Alpha

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Compliance and AI

Compliance and AI: Jay Rosen on Emerging AI Threats in Corporate Compliance and Cybersecurity

What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT?

These questions are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, in this podcast Jay Rosen joins me to discuss AI and fraud risk management.

Jay Rosen delves into the escalating influence of AI in corporate fraud, with historical and modern examples. A recent case from Hong Kong highlights how deepfake technology can be used to deceive employees. The speaker outlines three main AI threats: real-time deepfakes, AI-enabled evasion tactics, and manipulation of AI models.

It outlines strategies for corporations to mitigate these risks, including training on deepfake detection, ensuring secure data access, and implementing dual authorization processes. The goal is to prepare compliance departments for the AI-driven era of corporate crime.

Key Highlights:

  • Introduction to AI and Corporate Fraud
  • The Rise of AI in Cybersecurity and Fraud
  • Emerging AI Risks and Compliance Challenges
  • Key Areas of AI-Enabled Fraud
  • Deep Fake Technology and Corporate Impersonation
  • Mitigating AI Risks in Corporate Environments
  • Strategies for Handling Deepfakes and Model Manipulation

Resources:

Jay Rosen on LinkedIn

Tom Fox

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Compliance Into the Weeds

Compliance into the Weeds: The WACKO Enforcement Action Involving BF Borgers

The award-winning, 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.

Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds!

In this episode, Tom Fox and Matt Kelly look into an absolutely wacko SEC enforcement action involving BF Borgers and its founder and principal, Benjamin Borger’s.

The auditing sector was recently rocked by the Securities and Exchange Commission’s (SEC) investigation into BF Borgers CPA, an auditing firm with over 1,600 problematic disclosures. The incident, which serves as a reminder of the critical role played by audit committees in ensuring appropriate audit procedures,.

Only a fraudster can admire the audacity of Benjamin F. Borgers in fabricating audit reports for hundreds of clients, which underscores the need for enhanced governance and regulatory measures to prevent similar incidents in the future.

We discuss the impact on smaller public companies, focusing on their struggles to find competent and affordable audit firms. Matt raised the question of where the company’s audit committees were during all this fraudulent work. He also speculates on potential legal repercussions for Borgers and his firm. Both perspectives highlight the gravity of the situation, the need for improved oversight, and potential consequences of such actions.

Key Highlights:

  • Audit Quality Oversight in Regulatory Environment
  • Finding New Auditors After Losing Previous Firm
  • Limited Options for Small Company Auditors
  • Proactive Monitoring of Audit Firms by Committees

Resources:

Matt on Radical Compliance

 Tom 

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10 For 10

10 For 10: Top Compliance Stories For The Week Ending April 13, 2024

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week.

Tom Fox, the Voice of Compliance, brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes, hear about the stories every compliance professional should be aware of from the prior week.

Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for compliance professionals, all curated by the Voice of Compliance, Tom Fox.

Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

1. EY is still under fire for Wirecard imbroglio.  (FT)

2. The former Cognizant executives trial moved yet again. (Law360)

3. US to crack down on UFLPA loophole. (WSJ)

4. Yet another Boeing whistleblower allegation. (NYT)

5. The US agrees to the Menendez trial postponement. (Reuters)

6. The imprisoned Binance Director denies the AML charge. (BBC)

7. Was Wirecard a Russian spy operation?  (FT)

8. A Vietnamese property tycoon was sentenced to death for fraud.  (FT)

9. Zuma is back on the ballot in South Africa. (Bloomberg)

10. More trouble for Boeing executives. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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Daily Compliance News

Daily Compliance News: April 12, 2024 – The Sentenced to Death Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • A Vietnamese property tycoon was sentenced to death for fraud.  (FT)
  • Zuma is back on the ballot in South Africa. (Bloomberg)
  • The US agrees to the Menendez trial postponement. (Reueters)
  • More trouble for Boeing executives. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Daily Compliance News

Daily Compliance News: March 21, 2024 – The Off Channel Communications Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • More CFTC fines for messaging app violations. (WSJ)
  • $12 bank fraud in Vietnam. (FT)
  • Money laundering of $6.3bn fraud in UK.  (AML Intelligence)
  • Will the Supreme Court legalize bribery? (The Lever)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Daily Compliance News

Daily Compliance News: March 6, 2024 – The Another FIFA Corruption Trial Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • Yet another FIFA-related corruption trial. (FT)
  • A multi-billion-dollar fraud trial begins in Vietnam. (Reuters)
  • Menendez search warrants are constitutional. (AP)
  • Mike Lynch settles a data privacy suit against the SFO.  (Bloomberg)

For more information on the Ethico ROI Calculator and a free White paper on the ROI of Compliance, click here.

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Daily Compliance News

Daily Compliance News: March 5, 2024 – The World’s Most Ethical Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • Ethisphere announces the World’s Most Ethical Company Awards. (Press Release)
  • A former Venezuelan officer pleads guilty to $1.7 fraud and corruption.  (Local10)
  • Apple was fined €1.8bn in the EU. (FT)
  • Former Twitter execs sued for severance packages. (WSJ)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Compliance Into the Weeds

Compliance into The Weeds: Compliance and Internal Controls in The Trump Organization

The award-winning 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. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt look at the Trump Organization Monitor and Independent Director of Compliance required in the trial court order.

The topic of internal controls within the Trump Organization has recently come under scrutiny, with the need for improved financial practices and systems of accounting control becoming increasingly apparent. Tom views internal controls as the backbone of financial reporting and compliance. He points out the inconsistencies and errors in the Trump Organization’s financial disclosures, emphasizing the need for accurate certifications and attestations about the organization’s financial health. Similarly, Matt underscores the importance of consistent and accurate financial disclosures. He raises concerns about the lack of basic financial controls within the Trump Organization and sees the need for a significant overhaul of internal controls to ensure transparency, accuracy, and compliance with financial reporting standards. Both Fox and Kelly’s perspectives are shaped by their extensive experience in the field of compliance and their understanding of the critical role internal controls play in maintaining financial integrity.

Key Highlights:

  • Compliance Monitor’s Oversight in Fraud Detection
  • Navigating Financial Compliance in the Trump Organization
  • Implementing Effective Accounting Control Systems at Trump
  • Enhancing Financial Integrity in the Trump Organization

Resources:

Matt on Radical Compliance

Tom 

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Compliance Into the Weeds

Compliance Into The Weeds: Oscar Season and Internal Controls

The award-winning 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. Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this episode, Tom and Matt take a deep dive into a payments and internal controls miasma involving actors Tom Holland and Tom Hollander.

The recent incident involving British actor Tom Hollander, who accidentally received a payment intended for Tom Holland due to a mix-up at their shared talent agency, has brought to light the critical importance of robust accounting controls for payments. Tom emphasizes the need for a second set of eyes to oversee payments and ensure they are going to the correct recipients. He suggests that smaller organizations can implement human review controls, while larger ones may need to rely on technology such as robotic process automation. Matt is highlighting the potential legal and regulatory consequences of sending payments to the wrong recipients. He stresses the need for organizations to demonstrate to regulators that errors are rare and accidental and that they have effective assurance processes in place. Join Tom Fox and Matt Kelly as they delve deeper into this topic in the latest episode of Compliance into the Weeds.

Key Highlights:

  • Payment Mix-up Highlights Importance of Internal Controls
  • Error Prevention and Correction in Payments
  • Mitigating Compliance Risks with Internal Controls

Resources:

Matt on Radical Compliance

Tom 

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