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FCPA Compliance Report

FCPA Compliance Report – Navigating Corporate Ethics and Compliance Trends in 2026 with Mike Volkov, Part 2

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this inaugural episode of 2026, Tom Fox welcomes back his good friend and colleague, Mike Volkov, to reflect on the tumultuous year of 2025 and discuss the new trends for the upcoming year. This is Part 2 of a two-part series.

This episode delves into the significance of the False Claims Act (FCA) as a critical tool for government enforcement, discussing its constitutionality and potential outcomes before the Supreme Court. The conversation expands to discuss how FCA applies across various areas, such as trade enforcement and tariffs, and how it encourages corporate whistleblowing. Additionally, the discussion highlights the growing role of technology, AI, and ChatGPT in compliance, as well as the risks associated with their use. Other focal points include the importance of conflict-of-interest programs and the impact of ethical conduct on marketplace dynamics. The episode underlines the growing scrutiny from financial institutions and private equity over compliance practices, as well as the long-term trend towards a more ethics-driven corporate culture.

Key highlights:

  • Supreme Court and Constitutionality Issues on the FCA
  • Corporate Whistleblowers and DOJ’s Stance
  • Technology, AI, and Compliance Risks
  • Conflict of Interest and Ethical Culture
  • Marketplace Accountability and Corporate Reputation
  • Financial Institutions and Due Diligence

Resources:

Mike Volkov on LinkedIn

Volkov Law Group

Tom Fox

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Governing Reputation Risk: Five Essential Lessons for Compliance Professionals

Yesterday, we began a look at The DCRO Institute’s Guiding Principles for Reputation Risk Governance  (Guiding Principles). These Guiding Principles reframe reputation as a governance imperative, one that demands board-level oversight, operational alignment, and proactive intelligence gathering. A company’s credibility and trustworthiness influence every facet of performance, from market access and investor confidence to employee engagement and regulatory standing.

These principles offer a blueprint for embedding reputation risk into the core of enterprise governance, making it a shared responsibility across leadership, compliance, and operational functions. By integrating culture monitoring, third-party oversight, digital risk detection, and leadership readiness into compliance frameworks, organizations can shift from reacting to reputational crises to building resilience against them. This approach not only satisfies growing stakeholder and regulatory expectations but also positions the compliance function as a strategic driver of trust, value creation, and long-term enterprise sustainability.

For compliance professionals, these principles are more than theory. They connect directly to culture, ethics, disclosure integrity, and third-party risk. Today, we consider the five key takeaways, each with practical implications for how we integrate reputation risk into a compliance program.

1. Treat Reputation as a Strategic Asset—and a Material Risk

The Guiding Principles begin with a foundational point: reputation is both a value creator and a risk multiplier. Like intellectual property or brand equity, it can differentiate your company in the market, but it can also magnify the damage from other operational, legal, or ethical failures.

For compliance leaders, this means ensuring that reputation risk is built into your risk assessment framework. If your compliance program only measures transactional risks (e.g., FCPA, data privacy breaches, antitrust) without considering how stakeholder trust shapes enforcement, market access, or capital cost, you are missing the bigger picture.

You also need to ask: Does your board define its “reputation risk appetite”? Are there escalation triggers when specific trust-related indicators change? This kind of clarity turns reputation from an abstract concept into a measurable, governable asset. When you treat reputation like any other material risk, you also create defensibility, showing regulators, investors, and courts that your oversight is systematic, not ad hoc.

2. Recognize That Culture and Operations Are the Roots of Reputation

The report is blunt: Reputation is not built through messaging alone. It grows from the reality of how your business operates every day. Culture, incentives, operational integrity, and leadership behavior are the soil in which reputation thrives or dies.

For compliance professionals, this reinforces the critical link between culture assessments, operational audits, and reputation outcomes. You can’t “spin” your way out of a culture that tolerates ethical shortcuts, unsafe practices, or opaque decision-making.

The compliance function can play a leading role here by:

  • Measuring and reporting on speak-up culture.
  • Auditing incentive structures to ensure they don’t encourage risky shortcuts.
  • Testing operational resilience in high-pressure situations.

If culture is aligned with stated values, stakeholders will see it in consistent behavior. If it’s not, misalignment will eventually surface, often in a way that’s costly, public, and difficult to control. Compliance leaders should therefore embed reputation health checks into regular program reviews, linking operational integrity directly to trust metrics.

3. Build Reputation Risk Governance into the Enterprise Ecosystem

One of the strongest points in the Guiding Principles is that reputation risk can emerge from anywhere inside operations, from third parties, or in your digital footprint. That means it must be embedded into every part of enterprise risk management, from strategic planning to vendor onboarding.

For compliance, this is a direct call to expand due diligence and monitoring. Third parties can be the fastest way for reputation damage to bypass your internal controls. Are you evaluating vendors, distributors, and joint venture partners for cultural fit and ethical behavior, not just financial health or legal compliance?

Embedding reputation considerations also means partnering with other functions: IT on cybersecurity and AI governance; procurement on supply chain transparency; marketing on public claims; and HR on leadership tone and diversity commitments. When the risk is shared, the oversight must be shared with clear RACI charts defining who does what when early warning signals appear.

This integration moves reputation from being a “side conversation” to a standing agenda item in governance, risk, and compliance forums.

4. Leverage Early, Integrated Intelligence—Especially for Digital and Geopolitical Threats

The Guiding Principles highlight a reality every compliance officer knows: by the time a reputational crisis makes the news, you are already behind. Boards need early, integrated intelligence connecting stakeholder sentiment, digital chatter, geopolitical risk signals, and market behavior into actionable insights.

For compliance programs, this means moving beyond lagging indicators like hotline data or after-the-fact audit findings. You need to invest in:

  • Continuous media and social media monitoring for risk-relevant narratives.
  • Stakeholder sentiment analysis in key markets.
  • Digital threat intelligence to detect data leaks, impersonations, or coordinated disinformation campaigns.

This is particularly urgent given the convergence of cyber risk, AI-generated misinformation, and political polarization. The report warns that these forces can erode trust within minutes, long before facts are verified. Compliance leaders should therefore collaborate with security, communications, and legal teams to create protocols for rapid internal escalation and response. Early awareness gives you a chance to mitigate before perceptions harden.

5. Prepare the Board and Leadership to Act with Agility and Emotional Intelligence

Reputation risk governance is not just technical; it is human. In high-stakes moments, emotions run high, and decision-makers may default to instinct over principle. The Guiding Principles stress that directors and executives must be prepared, agile, and emotionally aware when trust is on the line.

For compliance, this has two implications:

  1. Scenario Planning and Training—Tabletop exercises should not just simulate legal breaches; they should simulate reputation-shaping events, from whistleblower allegations to viral misinformation. Test not only your processes but also your leaders’ ability to communicate with clarity and empathy under pressure.
  2. Decision Frameworks—When speed is critical, boards and executives need a shared set of non-negotiables: facts required before acting, stakeholder impacts considered, and values that guide trade-offs. Compliance can help codify these principles into playbooks that balance legal, ethical, and reputational priorities.

This preparation is also part of the directors’ fiduciary duties. As the report notes, legal standards like Caremark are expanding to include oversight of culture, conduct, and stakeholder trust. Compliance professionals are well-placed to ensure that leadership readiness meets not only business needs but also evolving legal expectations.

The DCRO Institute’s Guiding Principles for Reputation Risk Governance make one thing clear. In the modern business environment, reputation is not a communications afterthought, but rather it is a governance core.

For compliance professionals, this means expanding our scope. We must integrate reputation into risk assessments, culture programs, third-party oversight, early warning systems, and leadership training. In doing so, we help our organizations not just survive reputational shocks but build trust as a competitive advantage.