One thing about successful Chief Compliance Officers (CCOs) and other compliance practitioners is they can take in severe news, keep calm and carry on. In a keynote speech to the SCCE Compliance and Ethics Institute, Jenny O’Brien has called this the Triple C Rule for CCOs. By this she meant you must stay calm, cool and collected. O’Brien related that all company employees, up and down the chain, are watching the CCO. For this reason, she said that as a compliance practitioner you should be poker faced. To this end she keeps the sign “Keep Calm and Carry On” in her office. She said the Triple C’s are important because organizations look to the CCO to solve complex issues with simple solutions. When faced with a compliance issue or an obstacle you should endeavor to keep everything on an even keel and never let them see you sweat.

I thought about O’Brien’s wisdom when I read a recent article in the Wall Street Journal (WSJ) entitled “Rules for Modern Living from the Ancient Stoics” by Massimo Pigliucci where he wrote about the “unlikely revival of the Greco-Roman philosophy of stoicism.” Contending that we Americans misinterpret stoicism based almost solely on the Star Trek character of Mr. Spock, he believes that stoicism is not only humane but practical. However, I think Mr. Spock would agree that there is much the ancient stoics can teach us today. He wrote, “The Stoics had centuries to think deeply about how to live, and they developed a potent set of exercises to help us navigate our existence, appreciating the good while handling the bad. These techniques have stood the test of time over two millennia.” He laid out five principles which I have adapted for the modern compliance professional.

Learn to separate what is and isn’t in your power. This lets you approach everything with equanimity and tranquility of mind. He quoted the Greek stoic Epictetus for the following “Some things are within our power, while others are not.” If you can “understand and internalize the difference, and you will be happier with your efforts, regardless of the outcome.” For the compliance professional, you should focus on what you can control, influence or position. If you cannot stop a risk, you can put a control in place to help manage it through either detection or, better yet, prevention. If something requires remediation, at that point you can move forward.

Contemplate the broader picture. Consider problems and issues from the broader and more strategic view which will help you to put things in perspective. Pigliucci cited to the Roman Emperor Marcus Aurelius who wrote philosophically in his book on stoicism, The Meditations, the following: “Altogether the interval is small between birth and death; and consider with how much trouble, and in company with what sort of people and in what a feeble body, this interval is laboriously passed.” It is difficult for many compliance practitioners to step back and take the strategic view, largely because they spend most of the day fire-fighting. However, if you consider that a compliance failure will not likely be the end of the company, it may well give you a better sense of perspective with which to move forward.

Think in advance about challenges you may face during the day. A prepared mind may make all the difference between success and disaster. This can be in something as mundane as taking your daily wash, here Pigliucci cited to Epictetus yet again for the following wisdom, “If you’re going out to take a bath, set before your mind the things that happen at the baths, that people splash you, that people knock up against you, that people steal from you.” In the modern world, it might mean something as straight-forward as turning your cell phone to silent mode at the movies.

In the compliance world preparation is the key to any successful compliance program. This is achieved by measuring, assessing and identifying your risks and then managing them through the three-step risk management process of forecasting, risk assessment and risk based monitoring. This will provide you with a road map to know what to do, when to do it, where to do it and how to accomplish it.

Be mindful of the here and now. The stoics focused on being in the present. If there is a collective of patrons for the modern baseball closer, it is the stoics. If such a pitcher gives up a game winning home run, he must immediately forget it and go out again the next day as the past is not under your control. Yet the same type of thought must be given to the future “but the best way to prepare for it is to act where and when you are most effective—right here, right now.” Pigliucci cited to the Roman senator Seneca, for the following, ““Two elements must therefore be rooted out once and for all—the fear of future suffering and the recollection of past suffering; since the latter no longer concerns me, and the former concerns me not yet.””

This ties directly into the Department of Justice’s (DOJ) Evaluation of Corporate Compliance Programs (Evaluation) which specifies a root cause analysis be performed under Prong 1. But more importantly is the concept of using that information in the present to remediate. Even if your company suffered in the past from a compliance failure, you are not tied to that failure and the key inquiry is what did you do in the present to remediate the issue(s)? This is also important in how the DOJ will evaluate the reduction of any fines and penalties under the FCPA Pilot Program.

Before going to bed, write in a personal philosophical diary. Journaling is usually thought to be a modern phenomenon. However, the stoics put it to good use as a way to help learn from your mistakes. Pigliucci cited Epictetus, who said, “review your acts, … and for good [ones] be glad.” This would seem to tie nicely into the Compliance Evangelist mantra of Document, Document, and Document. Jan Farley, the CCO at Dresser-Rand, takes both the stoics and my mantra to heart in a different way. He keeps a running log of all his compliance accomplishments. This allows him to have a quick and easy reference to the work he has realized and provides the documentation to anyone who might want to know what his Compliance Department has been doing. This could include corporate stakeholders or the government should it ever come knocking.

While even today, stoicism is usually associated with Mr. Spock or the proverbial British stiff upper lip, it is much broader than simply keeping on to keep on. It is about adjusting your responses to what actually happened. If you consider that from the compliance perspective, it sounds quite a bit like a feedback looped system which includes ongoing inputs from continuous monitoring to improving and refining any system. Put another way, it operationalizes data to burn your compliance program into the very fabric of your organization.

 

This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

© Thomas R. Fox, 2017

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