With the DOJ Evaluation’s emphasis on operationalizing your compliance regime, innovation is an important tool for you to use in this journey, yet one that is too often overlooked. We have considered a variety of innovations in compliance; from innovations in structure, use of social media tools and concepts, to new and different ways to consider your internal resources as ways to innovate in your compliance regime. The DOJ has consistently said that a compliance program must evolve. It must evolve to meet new or updated risks, new opportunities or different regulations. Innovation is one of the best ways to evolve. Finally, and perhaps most importantly as a compliance practitioner, always remember that you are only limited by your imagination.

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Three key takeaways:

  1. Innovation is one of the most overlooked and under-utilized tools in compliance.
  2. Operationalizing your compliance program will require innovation in your compliance program going forward.
  3. As with most CCO initiatives, you are only limited by your imagination.

For over 15 years, Affiliated Monitors, Inc. (AMI) has provided professional independent integrity monitoring and ethics and compliance assessments nationally and internationally and across almost all industries.  With its knowledge of effective ethics and compliance programs and cultures, Affiliated Monitors is respected for its work as the corporate monitor on matters ranging from multi-national corporations to small and mid-size companies, and even individuals. This podcast series will explore the role of corporate monitorships in compliance and some of the key issues which companies and compliance professionals may face in dealing with monitors. Over the next five podcasts, we will consider what companies can do both internally and externally to incorporate the Benczkowski Memo and other DOJ guidance into their organizations.

This week’s episodes include:

Introduction

I this episode, I am joined by Eric Feldman and we begin with an overview of the Benczkowski Memo and Feldman observed that its scope is far beyond simply monitor selection. There are two broad considerations the Memo identifies. The first is the potential benefits that employing a monitor will bring for the corporation and the public. This considers the benefits of a monitor. The second consideration is the cost of the monitor and the impact of the monitor on the operations of a corporation. The Memo then lays out a strategy to avoid a monitorship altogether.

Internal Resources

This podcast series explores what companies can do both internally and externally to incorporate the Benczkowski Memo and other DOJ guidance into their organizations, show how to use a strong compliance program as both a sword and a shield and the benefits of using a third-party to fulfill the compliance mandate. In this episode , I consider with Vin DiCianni how companies can use this information internally to bolster their compliance programs. DiCianni began by emphasizing the DOJ now mandates companies who come before them have an effective compliance program. The days of wheeling in a large stack of documents are long gone and companies need to have substantive evidence on not simply their program but its effectiveness.

Using External Resources

Vin DiCianni and I have previously considered how companies can use DOJ announcements over the few past year and back to the FCPA Corporate Enforcement Policy, announced in November 2017, to consider what strategies companies can use based upon these documents to internally to bolster their compliance programs and today we consider this same issue from the external perspective. There are several areas from the DOJ guidance which make the use of external resources more impactful for a corporate compliance program.

Using the Benczkowski Memo as Both a Sword and Shield

In this episode, I am joined by Eric Feldman, as we consider what issues a company should consider when hiring or retaining a corporate monitor.  It is important to note right off the bat, that the selection of an appropriate monitor can either make or break the entire monitorship program for an organization. Feldman advises that the forestall such a problem a company needs to have a clear understanding of what it is trying to get out a monitorship.

Proactive Monitoring

In our concluding episode in this five-part series, Vin DiCianni and myself discuss proactive monitoring, which demonstrates the benefits of using a third party to fulfill the compliance mandates that have been laid out by the DOJ. Proactive monitoring is directly in the wheelhouse for every compliance program’s three key prongs: prevent, detect and remediate. The Benczkowski Memo and other DOJ pronouncements not only further articulates the road map of what the DOJ expects but also how a company can move through the enforcement process to receive a full declination under the FCPA Corporate Enforcement Program.

 

For more information on Affiliated Monitors, visit their website at www.affiliatedmonitors.com.

Welcome to the newest addition to the Compliance Podcast Network, Compliance and Coronavirus. As the Voice of Compliance, I wanted to start a podcast which will help to bring both clarity and sanity to the compliance practitioner and compliance profession during this worldwide health and healthcare crisis. In this episode, I am joined by Jonathan Armstrong, partner at Cordery Compliance in London and an international data privacy/data protection expert. We discuss the steps your organization can take now to reduce potential GDPR exposure during the Coronavirus health crisis.

For additional information see the Cordery Compliance client alert Coronavirus and Data Protection and visit the firm’s website, corderycompliance.com.

This podcast is sponsored by SAI Global. To learn how you can protect your business operations and workforce during these uncertain times, visit saiglobal.com/risk for free resources, expert guidance, and industry-leading technology.

 

In this episode, Tom Fox chats with Senior Vice President of Linedata Technology Services, Jed Gardner in this week’s show. They talk about how Linedata’s solution protects companies within the financial sector from cybersecurity risk and how this leads to increased productivity and profitability.

Mitigating Cybersecurity Risk

Jed says that LineData addresses three main challenges within the financial sector. They provide 1) cloud computing solutions to investment firms; 2) cybersecurity that is SEC- and FINRA- compliant; and 3) 24/7 managed support services that are both remote and on premises from their security operations center.

Tom asks Jed to explain how Linedata helps investment firm senior executives address cybersecurity risk. Jed replies that his company is “…providing a level of confidence to senior executives within investment firms that they are protected on a day-to-day, week-to-week, month-to-month basis… The way we’ve been addressing that is by providing levels of service and reporting that do meet the SEC and FINRA requirements, but really push beyond that.” He says that Linedata’s reporting capabilities allow them to use their tool sets to provide a day-to-day view.

Jed comments that categorizing data and defining its locations are important considerations in providing their services to clients. He points out that regulated businesses, in particular, should classify their data and understand where it is, understand the risks, and its impact on the business and stakeholders. As such, businesses should have prevention technologies and policies in place to protect their live and archived data.

360° Risk Analysis

Jed and Tom discuss Linedata’s approach to cybersecurity with vendors down the supply chain. Jed comments that senior executives want to know all the risks to their business since they ultimately become personally responsible for it. A proper risk analysis, like the 360° risk analysis Linedata offers its clients, can unearth hidden risks. Jed describes the 360° risk analysis process. He remarks, “Being able to implement that for businesses and provide feedback on a regular basis allows us to correctly protect them as much as we possibly can, but also gives the senior executives confidence…”

Beyond DDQs

Tom asks, “…can a compliance solution increase business efficiency and productivity leading to an increase in profitability?” Jed responds that using managed services such as Linedata add value by giving time back to key members of staff, who are then able to provide value back into the business. This increased productivity is what leads to increased profitability. He explains how Linedata gives time back to investment firms by taking away the tedious due diligence questionnaire (DDQ) process. He adds that his clients now have time “to look at how to enable the business to be more productive through the more efficient implementation of security and compliance and then, in turn, utilizing that knowledge to then allow the business to operate more freely and more efficiently.”

Resources

Linedata.com

MARCH 31, 2020 BY TOM FOX

In today’s edition of Daily Compliance News:

  • GE employees demand to mfg ventilators? (com)
  • Compliance Officer whistleblower awarded $450K by SEC. (RadicalCompliance)
  • DOJ investigates lawmakers for insider trading. (WSJ)
  • CEOs need to take pay cuts. (Houston Chronicle)