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Masters of Disaster

Stories of Risk, Ethics & Compliance. Host Leona Lewis interviews people about leadership, managing risk, ethics and compliance strategies for businesses, government, academia or society.
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Now displaying: September, 2016
Sep 26, 2016

In a fun interview about a dry topic, I talk with Rob Warmack, CEO of Compli, on all the ways that automation helps companies and compliance programs. We even discuss how automation can make your General Counsel like you more.

Rob and I get into the nitty-gritty of why automated systems help compliance programs.  He explains several the advantages automation brings to a compliance program. Benefits that range from better employee training to greater assurance for stakeholders.  

Automation can also allow the company to do things that they could not achieve manually.   For example, reliance on manual systems with live training will mean that training will happen less often, and take an hour or two of each employee's time.  Automation allows more frequent and shorter training activity.  Automation also allows a better employee experience.  Improving employee’s interactions with compliance, improves employee's willingness to listen to the messages that they need to hear.

Rob Warmack is CEO of Compli, providing more than just software and compliance reports.  Compli helps businesses assemble actionable information that inspires confident operations. Compli’s mission is to simplify compliance by creating persistent Governance, Risk and Compliance (GRC) monitoring tools, and real-time reporting and transparency.

 

LINKS

https://www.compli.com

Masters of Disaster® is a registered trademark of ComplyEthic Consulting LLC in the United States.

www.complyethic.com

Sep 19, 2016

Donna Boehme is back on the Masters of Disaster® podcast to discuss what it takes for compliance to succeed. Donna often refers to the new approach for the architecture of Compliance 2.0. Fundamentally, Compliance 2.0 starts with subject-matter experts with experience in compliance and how compliance is designed and managed. The most important hallmark of Compliance 2.0. is having a leader who is able to lead the operations toward compliant behavior.

The five elements of the Compliance 2.0 model are described by Donna in an infographic found on her website here http://compliancestrategists.com/upgrade/wp-content/uploads/2016/05/Compliance-2.0-Infographic-1.pdf. The first two elements we discuss in more depth on today’s podcast are:

  1. Empowerment

The Chief Compliance Officer (CCO) must have a clear mandate to design and manage “effective compliance programs” as described in the Federal Sentencing Guidelines. The CCO also has the support of the Board of Directors with unfiltered Board access.

       2.Independence

Under Compliance 1.0, compliance was not independent from businesses and decision-making was high-jacked by business incentives. Compliance must have independent power to make decisions separate from the incentives of other departments.

Recently, Donna Boehme released a very popular article on the Five Signs that Compliance 2.0 is the New Normal (http://www.fcpablog.com/blog/2016/8/3/donna-boehme-five-signs-that-compliance-20-is-the-new-normal.html). We discuss the five signs and what about them points to a greater understanding and implementation of Compliance 2.0 today compared to twenty years ago. The five signs we discuss are paraphrased below:

  1. Compliance is more often defined as a separate function from legalities. Over the last two decades, the compliance profession has successfully defined itself as a new and subject matter expertise that is separate from the legal department.
  2. Both regulators and prosecutors publicly acknowledge the importance of independence, empowerment and compliance subject matter expertise, which are all elements of Compliance 2.0. 
  3. The DOJ embraces the elements of Compliance 2.0 in the FCPA Pilot Program. 
  4. Compliance professionals understand the importance of the elements of a Compliance 2.0 and how it supports their success in their role and are being very selective about the CCO jobs they take. 
  5. Studies show that the next generation of compliance is more likely to be positioned for success. 

Donna Boehme will attend the SCCE annual meeting in Chicago on September 26-28.  If you are in Chicago at the event, please take the opportunity to meet her personally.

 

Donna Boehme is a principal of the firm Compliance Strategists (www.compliancestrategists.com), and a recognized leader in the field of compliance and ethics who brings a powerful mix of being a compliance officer, in-house legal and corporate secretariat perspectives, transactional experience, and deep global expertise. Donna is a compliance and ethics expert who helped develop the compliance and ethics best practices in use today by a wide spectrum of companies in the US and globally.

 

LINKS

Compliance Strategists’ Compliance 2.0 resource site http://compliancestrategists.com/upgrade/

Previous Interview with Donna Boehme on the Masters of Disaster podcast: http://www.complyethic.com/podcast/2016/6/23/is-your-compliance-program-built-to-succeed-not-if-it-is-compliance-10-donna-boheme-explains

Masters of Disaster® is the registered trademark of ComplyEthic LLC in the U.S.

The Masters of Disaster podcast is available on iTunes.

Sep 12, 2016

Jon Gonzalez and I discuss a few scandals from recent news when top leaders bend (or break) the rules and tell “white” lies.  The reputation and financial impact can be big, even when the indiscretions seem small.

Jon Gonzalez is Senior Legal Counsel at Syntrio, Inc., an online compliance and ethics training courses to companies, organizations, and government entities of all sizes.  He is also owner of VIP Fan Experiences LLC

As Senior Counsel for Syntrio, Jon utilizes his experience in ten plus years as a management-side labor and employment attorney to provide legal support and content expertise for the company and its sales team on courseware content and legal issues.  After presenting over 100 live employment discrimination and harassment prevention (and other employment law related) training courses, Jon uses this experience to evaluate and refine new and existing content for Syntrio.

 

LINKS

Syntrio Inc. http://www.syntrio.com

Masters of Disaster® is the U.S. registered trademark of ComplyEthic Consulting LLC

Sep 5, 2016

Eric Feldman, Senior Vice President at Affiliated Monitors, Inc. discusses with me why third party assessments are essential to meeting the obligations outlined by the Federal Sentencing Guidelines.  We also discuss the barriers to making a decision to conduct third-party assessments that executives sometimes create for themselves. 

Third-party assessments can bring to leaders attention information that internal auditors or departments would rather not emphasize.  What you don’t know can hurt you.  Business leaders are held responsible for bad actors (or bad actions or facts) within their organizations that they do not personally know. 

It is human nature to look at the world with an optimistic bias.  Business leaders often unconsciously assume that not knowing about bad facts within their organization means that these facts do not exist.  Leaders sometimes make the mistake of believing they cannot be held responsible for bad actions they do not know. 

The line between what a business leader is held responsible for is not whether or not they had a knowledge of bad facts, but whether he or she could have known the facts using common techniques to find out.  Federal Sentencing Guidelines state this expectation in Section 8.2.B.1(a)(1), an organization shall exercise due diligence to prevent and detect criminal conduct.

The DOJ wants to see companies have an evolving, continuously improving compliance program, not a perfect one. The Federal Sentencing Guidelines includes the requirement of periodic assessment of compliance programs as part of program of continuous improvement in Section 8.2.B.19(c)(1):

[T]he organization shall periodically assess the risk of criminal conduct and shall take appropriate steps to design, implement, or modify each requirement set forth in subsection (b) to reduce the risk of criminal conduct identified through this process.

Companies need to identify whether various parts of compliance programs are working, and how the programs are impacting corporate culture.  It is important to have a third party to take a look to see whether what you are doing to make sure the company is getting accurate and complete information.

Eric R. Feldman, CFE, CIG retired from the Central Intelligence Agency (CIA) in 2011 with over 32 years of experience in Inspector General oversight and federal auditing, in both the Executive and Legislative branches of government.  He has served in executive positions with Offices of Inspector General at the Department of Defense, Defense Intelligence Agency, and CIA, and was the longest serving Inspector General of the National Reconnaissance Office (NRO) from 2003-2009. At the NRO, he presided over a highly successful procurement fraud prevention and detection program, widely recognized by the Department of Justice as a model throughout the federal government.

While serving as a Federal Inspector General, Mr. Feldman was an active member of the National Procurement Fraud Task Force at the Department of Justice and chaired the Private Sector Outreach Committee. In this role, he was a driving force behind the amendments to the Federal Acquisition Regulations requiring the mandatory disclosure of contractor fraud and the implementation of business ethics and conduct programs for federal contractors.

Mr. Feldman is a frequently sought-after speaker and author on the topics of procurement fraud detection and prevention, corporate business ethics and compliance, and managing an Inspector General function. During the last year, he has given presentations at national conferences of the Association of Certified Fraud Examiners, the Society of Corporate Compliance and Ethics, and the Association of Inspectors General.

LINKS

Eric Feldman, CFE, CIG 

Affiliated Monitors, Inc. 

The Federal Sentencing Guidelines 

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