Tag: Vince Walden

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Compliance Week Conference Podcast

Compliance Week 2024 Speaker Preview Podcast – Vince Walden on the Latest in DOJ Data Analytics Expectations

In this episode of the Compliance Week 2024 Speaker Preview Podcasts series, Vince Walden discusses his panel at Compliance Week 2024, “Aligning your Compliance Program to DOJ’s Data Analytics Expectations.” Some of the issues he will discuss in this podcast and his presentation are:

  • The latest words from the DOJ on data analytics
  • How will the DOJ use data analytics going forward?
  • Seeing old friends and learning about new best practices at Compliance Week 2024

I hope you can join me at Compliance Week 2024. This year’s event will be held April 2-4 at the Westin Washington, DC, Downtown. The line-up is first-rate, with some top ethics and compliance practitioners around.

Gain insights and make connections at the industry’s premier cross-industry national compliance event, offering knowledge-packed, accredited sessions and take-home advice from the most influential leaders in the compliance community. Back for its 19th year, join 500+ compliance, ethics, legal, and audit professionals who gather to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs. Compliance, ethics, legal, and audit professionals will gather safely face-to-face to benchmark best practices and gain the latest tactics and strategies to enhance their compliance programs, among many others, to:

  • Network with your peers, including C-suite executives, legal professionals, HR leaders, and ethics and compliance visionaries.
  • Hear from 80+ respected cross-industry practitioners, including CEOs, CCOs, regulators, federal officials, and practitioners, to help inform and shape the strategic direction of your enterprise risk management program.
  • Hear directly from panels on leadership, fraud detection, confronting regulatory change, abiding by cross-border rules and regulations, and the always-favorite fireside chats.
  • Bring actionable takeaways from various session types, including cyber, AI, Compliance, Board obligations, data-driven compliance, and many others, to your program for you to listen, learn, and share.
  • Compliance Week aims to arm you with information, strategy, and tactics to transform your organization and career by connecting ethics to business performance through process augmentation and data visualization.

I hope you can join me at the event. For information on the event, click here. As an extra benefit to listeners of this podcast, Compliance Week is offering a $200 discount on the registration price. Enter the discount code TFOX2024 for $200 off.

The Compliance Podcast Network produces the Compliance Week 2024 Preview Podcast series. Compliance Week sponsors this series.

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Data Driven Compliance

Data Driven Compliance: The Journeys of Albemarle and ABB to Data-Driven Compliance, Part 2

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data-Driven Compliance podcast, hosted by Tom Fox. This podcast features an in-depth conversation around the uses of data and data analytics in compliance programs. Data-Driven Compliance is back with another exciting episode. In this special second part of a two-part podcast, I co-host with Vince Walden, CEO of KonaAI, to visit with our guests Andrew McBride, Chief Risk Officer at Albemarle, and Tapan Debnath, Head of Integrity, Regulatory Affairs, and Data Privacy—Process Automation at ABB, on their respective companies’ journeys to data-driven compliance.

Debnath’s perspective on the challenges and strategies in compliance data analytics is centered on the need for clear goals, defined processes, and the importance of early planning and resource allocation. He sees compliance data analytics as a journey rather than a project, encouraging organizations to start with imperfect data and refine their processes over time. On the other hand, McBride’s perspective is focused on prioritization, resource allocation, and audience-driven decision-making. He emphasizes the iterative nature of data analytics projects and believes that a successful ethics and compliance program does not necessarily require a large data analytics team, but rather the right roles and support from the IT function. Join Tom Fox and Vince Walden as they delve deeper into these insights with Tapan Debnath and Andrew McBride on this episode of Data-Driven Compliance.

Key Highlights:

  • Navigating Data Privacy Laws Across Jurisdictions
  • Strategic Steps in Ethics and Compliance Analytics
  • Unlocking AI’s Potential in Compliance Analytics
  • Actionable Insights from Data Analytics
  • Leveraging Documentation for Enhanced Compliance and Risk Mitigation

Resources:

Vince Walden on LinkedIn

KonaAI

Tom Fox 

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Blog

The DOJ on the Need for Compliance Program Data Analytics

The Department of Justice (DOJ) is increasingly utilizing data analytics for proactive enforcement, signaling a significant shift in their approach to combating white-collar crime. This move reflects the recognition of data analytics as a crucial component of compliance programs, extending beyond historical reporting to transactional details and third-party interactions.

Recently, Acting Principal Deputy Assistant Attorney General Nicole M. Argentieri Delivered remarks at the 39th International Conference on the Foreign Corrupt Practices Act (FCPA). She stated, “the Criminal Division has long been an innovator in using data to enhance its investigations and prosecutions. I am proud to announce that we are taking that experience and expertise with data analysis and applying these tools to our FCPA investigations. Through investments in personnel, we have improved our ability to harness and analyze available data — both public and non-public — to identify potential wrongdoing involving foreign corruption. This approach has already generated successful FCPA investigations and prosecutions.” 

In this week’s episode of “Data Driven Compliance,” host Tom Fox and Vince Walden, discussed the importance of data analytics in the DOJ’s enforcement efforts was discussed. Matt Galvin, an expert leading the DOJ’s data analytics initiative, highlighted the proactive use of data to generate cases related to the FCPA and emphasized that this is just the beginning.

The DOJ expects companies to adopt a similar data-driven approach to compliance. Vince Walden, cited to the Argentieri speech where she stated, “just as we are upping our game when it comes to data analytics, we expect companies to do the same.” This expectation extends beyond simply tracking trainings, policies, and investigations. The DOJ’s focus is on monitoring third parties throughout the lifespan of the relationship, not just during the onboarding process.

Walden emphasized that while due diligence and background checks are essential, the real risk of fraud occurs during the actual business transactions with third parties. Therefore, companies need to go beyond initial checks and continuously monitor high-risk vendors, contract terms, and other relevant data sources. By mapping risks to data sources and implementing effective tests, companies can identify and prioritize risky transactions.

The increasing accessibility and cost-effectiveness of data analytics have made it a viable option for companies of all sizes. It can help companies demonstrate effective compliance programs, uncover hidden financial irregularities, and improve overall efficiency. The importance of continuous data analysis in compliance programs was highlighted by the Bank of America enforcement action by the Consumer Financial Protection Bureau (CFPB).

The DOJ’s use of data analytics is not limited to public data available from public companies. They are also leveraging private information, which could potentially include information obtained during investigations within specific industries. The DOJ has made significant investments in technology and resources to enhance their enforcement capabilities, taking inspiration from techniques used in the healthcare division to combat fraud.

However, implementing a data-driven compliance program comes with its own set of challenges. There is still confusion among the compliance community regarding what data analytics entails and how it should be applied. Walden stressed the need for a process-oriented approach rather than treating it as a one-time project. Data analytics should be integrated into the compliance program as a continuous business process, similar to third-party due diligence.

The DOJ’s increasing use of data analytics for proactive enforcement has far-reaching implications. Companies must recognize the importance of adopting a data-driven approach to compliance and invest in the necessary resources and technology. By doing so, they can not only meet the DOJ’s expectations but also improve the effectiveness of their compliance programs and mitigate the risk of fraud.

The DOJ’s increasing use of data analytics for proactive enforcement signifies a significant shift in their approach to combating white-collar crime. Companies must embrace this data-driven approach to compliance, continuously monitor high-risk transactions, and invest in the necessary resources and technology. By doing so, they can demonstrate effective compliance programs, uncover hidden financial irregularities, and improve overall efficiency.

For the full podcast episode, click here.

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Data Driven Compliance

Data Driven Compliance: Current Trends and Innovations

Do you need help keeping up with your business’s ever-changing compliance programs? Look no further than Tom Fox’s award-winning Data-Driven Compliance podcast, which features an in-depth discussion about the uses of data and data analytics in compliance programs. Data-Driven Compliance is back with another exciting episode. Today, we take things differently by posting a webinar sponsored by KonaAI entitled “Data Driven Compliance: Current Trends and Innovations.” Vince Walden hosted Tom Fox and Rayne Towns.

Tom Fox and Rayne Towns are seasoned professionals in the field of compliance. Fox is a leading authority in the industry and the Compliance Podcast Network’s founder. Towns are Nokia’s global head of ethics and compliance, risk, and monitoring. Fox thinks that risk management and fraud prevention strategies based on data are the next steps in the compliance field. He stresses how important data analytics are for making compliance programs work better. He also acknowledges the need for human interpretation and utilization of the data.

On the other hand, Towns sees data-driven compliance strategies to strengthen and improve the compliance program’s effectiveness, using data analytics to identify and address gaps in the compliance program. She also emphasizes the importance of prioritizing and starting with solving specific problems when implementing data analytics. Join Vince Walden, Tom Fox, and Rayne Towns on this Data Driven Compliance podcast episode to learn more about their perspectives on data-driven risk management and fraud prevention compliance strategies.

Highlights Include:

  • Transforming Compliance Through Data Analytics
  • Effective Strategies in Compliance and Risk Management
  • The Role of Data Analytics in M&A Compliance
  • Leveraging diverse data sources for risk assessment
  • Managing Risks: Vendors, Customers, and Employees
  • Strengthening Compliance Programs Through Team Collaboration
  • The Power of Generative AI in Compliance
  • Enhancing Compliance Programs with Predictive Models
  • Factors Influencing Budget Approvals and Getting Budget

 Resources:

KonaAI

 Tom Fox 

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Blog

Data Driven Compliance: Current Trends and Innovations

Data-driven compliance strategies have become a game-changer in risk management and fraud prevention. I recently had the opportunity to participate in a KonaAi-sponsored webinar entitled “Data Driven Compliance: Current Trends and Innovations.” The event was hosted by Vince Walden and featured Rayne Towns, the Global Head of Risk and Monitoring at Nokia.

I view data-driven compliance strategies in risk management and fraud prevention as an evolution of the compliance profession. It can be seen in the importance of data analytics in improving the effectiveness of compliance programs. There is and will always be the need for human interpretation and utilization of the data. Towns see data-driven compliance strategies as a way to strengthen and improve the compliance program’s effectiveness, using data analytics to identify and address gaps in the compliance program. She also emphasizes the importance of prioritizing and starting with solving specific problems when implementing data analytics. Vince Walden joined in with his perspective on data-driven compliance strategies in risk management and fraud prevention.

Data driven compliance is one more in the evolution of the compliance profession, one more step. Fortunately, we have evolved from when compliance was very much legal driven by lawyers. And over time, most compliance professionals (and equally importantly, the DOJ and SEC) began to view compliance as a business process. As a business process, it can be measured, it can be studied, it can be monitored, and it can be approved based on that information.

We began with the importance of data analytics in compliance programs. The shift towards data-driven compliance has transformed the profession from solely legal-driven to a measurable and improvable business process. This shift has been recognized by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The SEC first called out the use of data analytics, as it did in the Order concluding the Key Energy FCPA enforcement action. Most recently, the Albemarle FCPA resolution specifically called out the company’s use of data analytics in its remediation program, which occurred during the pendency of its FCPA resolution process.

In 2016, the Securities and Exchange Commission called out data analytics in an enforcement action for the first time. It was the Key Energy FCPA enforcement action, where they suggested data analytics would have shown or demonstrated a range of values outside the norm for certain gifts, travel, and entertainment for the company. This demonstrated that regulatory thinking evolved as well. Now, data analytics has become a critical element to improve the business process of compliance. Data driven compliance allows you to measure it, monitor it, and improve it all in a documented fashion so that if a regulator ever comes knocking, you can demonstrate to them not only the effectiveness of your compliance program but also how you are moving your compliance regime forward based on solid data and analysis.

AB InBev was one of the first companies to successfully implement data-driven compliance strategies, moving from detection to prevention of issues. This shift has resulted in cost savings and improved risk management for the company. Equally significant was the company’s public discussion of the BrewRight program and how it evolved into a broader business process tool.

The DOJ always telegraphs what is important to them. Starting 2020 with the 2020 Update to the Evaluation of Corporate Compliance Programs, they said the CCO must have access to all data across an organization. You may have data silos, but a CCO must be able to punch through all of those data silos. It is a natural progression from 2020 to this Albemarle FCPA enforcement action, where the DOJ clearly stated that the company’s data analytics program allowed them to move forward with the remediation.

Moreover, the critical part was that Albemarle was not required to have a monitor. To avoid having a monitor required under the resolution required two things. One, an effective compliance program, but two, testing of it. And the DOJ has made very clear those requirements. Albemarle had an effective compliance program, but more importantly, they have monitored it and tested it through their data analytics program. Their compliance function’s actions saved the company millions. And it tells the rest of us what the DOJ will look for in a compliance program going forward.

Data analytics plays a crucial role in various aspects of compliance, including M&A due diligence and risk assessment. By leveraging external data sources, compliance professionals can gain valuable insights into potential risks associated with vendors, customers, and employees. This information allows them to make informed decisions and mitigate risks effectively.

Compliance professionals must be aware of the importance of data-driven compliance strategies’ impact on decision-making. Using data analytics, compliance professionals can measure, monitor, and improve compliance programs in a documented fashion. This demonstrates the compliance program’s effectiveness and enables organizations to adjust and adapt more quickly to changing regulatory requirements.

However, implementing data-driven compliance strategies comes with its own challenges. Balancing the tradeoffs between automation and manual processes is one such challenge. While automation can streamline compliance processes and identify gaps, manual touches are sometimes necessary. Data analytics can help identify these gaps and drive accountability and training efforts.

There is great potential for new technologies like generative AI and machine learning to enhance compliance programs. These technologies can make compliance processes more efficient and enable better decision-making. For example, generative AI can guide users through dashboards and provide valuable insights, making compliance tasks easier and more effective.

Budget approvals are another crucial consideration for organizations when implementing data-driven compliance strategies. CFOs prioritize keeping the business out of legal risks and fines, fraud prevention and recoveries, and improved internal controls. Data analytics is not just a “nice-to-have” but a “must-have” for organizations. Those that do not embrace data analytics or fail to move towards it are at risk.

In conclusion, data-driven compliance strategies have revolutionized the compliance profession. Organizations can measure, monitor, and improve compliance programs by leveraging data analytics, resulting in cost savings, improved risk management, and better decision-making. While there are challenges associated with implementing data-driven compliance strategies, the benefits far outweigh the tradeoffs. Compliance professionals must embrace data analytics as a critical element of their compliance programs to stay ahead in an ever-evolving regulatory landscape.

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Data Driven Compliance

The Uses of Data Driven Compliance: Part 5 – Compliance Successes Using Data Driven Compliance

Welcome to Data Driven Compliance. In this podcast, we 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 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 KonaAI.

I recently had the opportunity to visit with Vince Walden, founder and CEO of KonaAI, for a podcast series on the uses of data driven compliance. Over these five podcasts, we have discussed generative AI and ChatGPT in compliance, the profiles of a corrupt payment, making the business case for data-driven compliance, what to ask for and how to ask for it, and some success stories. In this concluding Part 5, we will look at some compliance successes using a data driven approach.

In the world of business, compliance is a critical aspect that ensures organizations adhere to legal and ethical standards. Compliance not only helps companies avoid legal troubles but also plays a significant role in improving business efficiency and profitability. In this episode, Tom and Vince considered the advanced compliance tools for fraud detection and cost savings. Our discussion entailed a comprehensive analysis of the key factors that impact advanced compliance tools for fraud detection and cost savings, exploring the tradeoffs involved, the challenges faced, and the importance of considering the impact on decision-making.

Key Highlights:

  • Invoice Price Discrepancy Detection and Recovery
  • Compliance-driven Efficiency through Fraud Risk Analysis
  • Shifting Travel Expenses for Manufacturing Observations
  • Integrating Multiple Data Sources for Fraud Detection

Resources:

Connect with Vince Walden on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn

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Blog

Compliance Successes Using Data-Driven Compliance

I recently had the opportunity to visit with Vince Walden, founder and CEO of KonaAI for a podcast series on the uses of data driven compliance. KonaAI is the sponsor of those podcasts. This blog post series will flesh out the podcast show notes. Over the next five blog posts, we will discuss generative AI and ChatGPT in compliance, the profiles of a corrupt payment, making the business case for data-driven compliance, what to ask for and how to ask for it and some success stories. In this Part 5, we will look at some compliance successes using a data-driven approach.

As always, I am joined by Vince Walden, founder and CEO of KonaAI. There is a quiet revolution happening in the realm of compliance. It’s one that, if harnessed correctly, can turn a typically reactive process into a proactive strategy. I am of course talking about data-driven compliance. By making use of the vast amounts of data your organization collects, you can uncover potential compliance risks before they turn into actual problems. This approach can be a game-changer, not just for your role as a compliance officer, but also for your organization’s overall risk management strategy. No longer will you be caught off guard. Instead, you’ll be leading the charge, armed with real-time insights and actionable data.

Sometimes, we face unintended consequences in a business setting – consequences that occur unexpectedly because of actions taken. They could be beneficial, like improvements to the business or reduced costs. Or, they could point to underlying issues that need addressing. However, these consequences can become visible only when multiple risk triggers are considered. Here’s the interesting bit. Vince underscored the importance of considering multiple risk triggers when analyzing data. Relying on just one test or indicator won’t cut it. It isn’t just one anomaly that signals an issue. The convergence of multiple risk signals helps in identifying the potential problem areas.

Compliance is not simply about rules and regulations. It is about understanding and managing risks, ultimately leading to better business decision-making. When well-executed, it can yield great rewards or “compliance wins”. One example is identifying high-risk areas in your business and managing them proactively. A high-risk business unit in high-risk FCPA environments. By analyzing their fraud risks, the company found that salespeople wound up spending quite a bit on gifts, travel, and entertainment for foreign officials to secure a sale. The solution? Limit setting. Not only did it save them money, but decreased the sales cycle, and the cherry on top – a clientele of higher quality.

Using data analysis techniques to improve business efficiency is of utmost importance in today’s business environment. By leveraging data analysis, you have the power to identify bottlenecks, streamline processes, and optimize your operations. This not only saves time and resources but also enhances overall compliance and risk management efforts. With every step you take towards harnessing the power of data, you are paving the way for increased business efficiency and success in your industry.

Compliance is the critical aspect that ensures organizations adhere to legal and ethical standards. Compliance not only helps companies avoid legal troubles but also plays a significant role in improving business efficiency and profitability. Data driven  of advanced compliance tools for fraud detection and cost savings was discussed. This article aims to provide a comprehensive analysis of the key factors that impact advanced compliance tools for fraud detection and cost savings, exploring the tradeoffs involved, the challenges faced, and the importance of considering the impact on decision-making.

One of the advanced compliance tools discussed in the episode is Unit Price Analysis. This tool utilizes advanced technology to identify discrepancies in vendor invoices, potentially saving companies significant amounts of money. By comparing prices charged for the same product by the same vendor in different locations, contract compliance can be achieved. As Walden explained, even a small difference in unit prices can translate into substantial recoveries when multiplied by tens of thousands or hundreds of thousands of units. This tool highlights the importance of scrutinizing vendor invoices and ensuring fair pricing across different locations.

To effectively detect fraud and ensure compliance, it is crucial to integrate multiple data sources into compliance monitoring programs. As Vince Walden mentions, transparency is key, and integrating various data sources brings that transparency into play. By pulling in third-party payments, due diligence work, sanctions lists, whistleblower hotline data, and other indicators, companies can gain actionable insights and identify improper payments and risk scoring. The ability to put in multiple risk triggers and analyze data from various sources allows for a more comprehensive and accurate assessment of potential risks.

However, implementing advanced compliance tools for fraud detection and cost savings is not without its challenges. It is essential to know when to stop reviewing transactions or high-risk activities. Risk scoring frameworks help prioritize the most critical transactions, but continuous improvement is necessary to update the models and identify any missed risk triggers. Additionally, the complexity of integrating multiple data sources and implementing advanced compliance tools requires careful planning and consideration.

The impact of advanced compliance tools for fraud detection and cost savings goes beyond financial benefits. These tools can change the character of the people who interact with the company. By shifting the responsibility of travel expenses to foreign officials, the company not only achieved significant cost savings but also attracted decision-makers who came to sign contracts. This unexpected outcome demonstrates the power of compliance and fraud risk prevention in improving business efficiency and quality of customers.

In conclusion, advanced compliance tools for fraud detection and cost savings play a crucial role in ensuring legal and ethical standards are met while improving business efficiency and profitability. Unit Price Analysis and Fraud Risk Analysis are just two examples of such tools discussed in the podcast episode. By integrating multiple data sources, implementing risk scoring frameworks, and continuously improving compliance models, companies can achieve transparency, identify risks, and make informed decisions. However, it is important to consider the challenges and tradeoffs involved in implementing these tools. Ultimately, the impact of advanced compliance tools extends beyond financial benefits, positively influencing the overall business environment.

Resources:

Connect with Vince Walden on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn

Categories
Data Driven Compliance

The Uses of Data Driven Compliance: Part 4 – What to Ask For and How to Ask For It

Welcome to Data Driven Compliance. In this podcast, we 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 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 KonaAI.

I recently had the opportunity to visit with Vince Walden, founder and CEO of KonaAI, for a podcast series on the uses of data driven compliance. Over these five podcasts, we will discuss generative AI and ChatGPT in compliance, the profiles of a corrupt payment, making the business case for data-driven compliance, what to ask for and how to ask for it, and some success stories. In Part 4, we discuss what data a CCO needs to ask for and how to do so.

Vince Walden brings knowledge and experience in continuous compliance monitoring and risk assessment processes. Walden’s perspective on the topic is that it should be approached as a journey, not a one-time program. He emphasizes the importance of proactive risk assessments and continuous monitoring, advocating for an iterative approach demonstrating constant improvement in compliance efforts. This perspective is shaped by his belief that meeting regulatory expectations requires a diligent and ongoing commitment to improvement.

Walden also suggests that data sources should be identified based on the results of the fraud risk assessment and that the ease of obtaining the data should be considered when prioritizing analytics projects. To delve deeper into what data a CCO should ask for and how to ask for it, join Tom Fox and Vince Walden on this Data Driven Compliance podcast episode.

Key Highlights:

  • Continuous improvement through risk assessments and monitoring
  • Effective risk assessment through diverse data sources
  • Uncovering hidden relationships through expense categories

Resources:

Connect with Vince Walden on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn

Categories
Blog

What Data to Ask For and How to Ask for It

I recently had the opportunity to visit with Vince Walden, founder and CEO of KonaAI, for a podcast series on the uses of data driven compliance. KonaAI is the sponsor of those podcasts. This blog post series will flesh out the podcast show notes over the next five blog posts, and we will discuss generative AI and ChatGPT in compliance, the profiles of a corrupt payment, making the business case for data-driven compliance, what to ask for and how to ask for it and some success stories. In Part 4, we will explore what data to ask for and how to ask for it.

As always, I am joined by Vince Walden, founder and CEO of KonaAI. There is a quiet revolution happening in the realm of compliance. It’s one that, if harnessed correctly, can turn a typically reactive process into a proactive strategy. I am, of course, talking about data-driven compliance. By using the vast amounts of data your organization collects, you can uncover potential compliance risks before they become actual problems. This approach can be a game-changer for your role as a compliance officer and your organization’s overall risk management strategy. No longer will you be caught off guard. Instead, you’ll lead the charge with real-time insights and actionable data.

Imagine a world where compliance isn’t a headache but a strategic advantage. You’re not constantly putting out fires but predicting and preventing them. It might sound like a dream, but it doesn’t have to be. How so? Well, by adopting a data-driven approach to compliance. This innovative method allows you to identify, assess, and manage potential compliance risks based on actual data. It’s about staying one step ahead, making informed decisions, and truly adding value to your organization. It’s not just about avoiding penalties and meeting regulations anymore. It’s about creating an environment of continuous improvement and proactive risk management.

Let’s paint a picture. You’re in a game of chess. But in this game, you’re not just reacting to your opponent’s moves. You’re anticipating them, strategizing, and making proactive decisions. That’s the power a data-driven approach to compliance can bring to your role as a compliance officer. It’s more than just crunching numbers and keeping up with regulations. It’s about leveraging the power of data to identify and mitigate risks before they materialize. It’s about transforming compliance from a cost center into a strategic asset. So, if you’re curious about how to make this data-driven shift, buckle up because we’re about to dive deep into this transformative realm.

Compliance monitoring and risk assessment are crucial components of any effective compliance program. In a recent episode of the podcast “Data Driven Compliance,” hosted by Tom Fox and featuring Vince Walden, the topic of continuous compliance monitoring and risk assessment process was explored in depth. This article aims to comprehensively analyze the critical factors that impact this process, discuss the tradeoffs involved in balancing different factors, and explore the challenges associated with other approaches.

Vince highlighted the importance of starting with a fraud risk assessment. This initial step allows organizations to identify high-frequency and high-impact risks and implement mitigating controls. Compliance professionals can prioritize their efforts and focus on the most critical areas by assessing the likelihood and impact of various risks on a scale of one to ten.

Data sources play a crucial role in risk assessment. Financial accounting systems and third-party data are valuable sources of information for identifying and mitigating risks. Tracking and categorizing expenses in accounting systems is significant for identifying anomalies and assigning risk scores. Vince highlighted the significance of having a centralized system, such as the Kona platform, to streamline this process.

However, relying solely on analytics without integrating them into the fraud risk assessment would be best. He emphasized the need for alignment between data analysis and risk assessment to ensure efforts are focused on addressing the identified risks. Simply conducting data analytics without considering the underlying risks may not yield meaningful results.

One of the challenges in continuous compliance monitoring and risk assessment is the availability and accessibility of data. Some data sources may need help, requiring compliance professionals to prioritize based on the ease of data acquisition and its value. For example, if faced with choosing to conduct a data analytics project in Brazil or China, Walden suggested starting with Brazil due to the relative ease of obtaining data from that region.

Another challenge lies in the scope of compliance monitoring. Walden emphasized that compliance monitoring is not a one-time, all-encompassing effort. It is a journey that involves proactively assessing risks and monitoring them from location to location. Compliance professionals should focus on demonstrating continuous improvement rather than tackling all threats at once. This approach aligns with regulators’ expectations of an effective due diligence program.

In addition to the primary focus on risk assessment, Walden highlighted the importance of considering ancillary areas of inquiry. For instance, looking at places such as charitable donations or marketing spending can provide valuable insights into potential risks of bribery or corruption. The KonaAI tool can help correlate these ancillary data points and provide a more comprehensive view of compliance risks.

In conclusion, continuous compliance monitoring and risk assessment require a thoughtful and balanced approach. Organizations can identify and prioritize risks, starting with a comprehensive fraud risk assessment. Data sources, such as financial accounting systems and third-party data, play a crucial role in this process. However, aligning data analytics with the identified risks is essential to ensure meaningful results. Compliance professionals should also consider the data availability challenges and scope of compliance monitoring. Organizations can meet regulatory expectations and enhance their compliance programs by demonstrating continuous improvement and considering ancillary areas of inquiry.

Resources:

Connect with Vince Walden on LinkedIn

Check out KonaAI

Connect with Tom Fox on LinkedIn

Categories
Data Driven Compliance

The Uses of Data Driven Compliance: Part 3 – Making the Business Case for Data Driven Compliance

Welcome to Data Driven Compliance. In this podcast, we 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 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 KonaAI.

I recently had the opportunity to visit with Vince Walden, founder and CEO of KonaAI, for a podcast series on the uses of data driven compliance. Over these five podcasts, we will discuss generative AI and ChatGPT in compliance, the profiles of a corrupt payment, making the business case for data-driven compliance, what to ask for and how to ask for it, and some success stories. Part 3 discusses how to make the business case for data-driven compliance.

Vince Walden, a seasoned professional with over 25 years of experience in compliance and risk management, is the founder and CEO of KonaAI, a software company specializing in automating data management for compliance and fraud risk management. Walden believes that compliance professionals play a crucial role in data-driven risk management. He emphasizes the need for these professionals to make a business case for data-driven compliance to both risk professionals and the CFO or head of operations.

According to Walden, data-driven compliance not only aligns with regulatory expectations and avoids risks, but it also improves the overall functioning of the business by identifying hidden money, reducing costs, eliminating waste and fraud, and preventing improper payments. His perspective is shaped by his extensive experience in the field, including his work as a consultant, fraud investigator, and forensic technologist. Join Tom Fox and Vince Walden as they delve deeper into this topic on this episode of Data Driven Compliance.

Key Highlights:

  • The Importance of Data Driven Compliance
  • Effectively Conveying Compliance Value to CFOs
  • The Impact of Data Driven Compliance
  • Maximizing Compliance ROI through Risk Mitigation

Resources:

Connect with Vince Walden on LinkedIn

Check out Kona AI

Connect with Tom Fox on LinkedIn