Compliance Perspectives

By Adam Turteltaub

Helplines are ubiquitous these days, but do they help?  Recent research co-authored by Kyle Welch, an Assistant Professor of Accountancy at George Washington University’s business school, is very promising.  As he explains in this podcast, his research, which used data helpline provider NAVEX Global, found that firm that have active helplines generally have higher quality corporate governance and earning reports.

Some may find this counterintuitive, thinking that more calls are a sign of trouble.  Instead, his research revealed, it is more probably a sign of a healthy work environment and business.

Listen in to hear more of his data, and to help make the business case for investing in compliance and ethics.  Also, be sure to download a copy of his research.

By Adam Turteltaub

The world has grown enamored with Big Data and the promise of Artificial Intelligence (AI).  As the next big thing, many believe that it will be transformative for business, and even medicine, exposing patterns that humans miss, and enabling far better decision making.

But over the last few months, there has been a shift in the discussion as cases of less than compliant and not exactly ethical decisions were being made by the algorithms behind AI, reports Deborah Adleman, a Director with Ernst & Young LLP where she is the US and America’s Data Protection Leader and an executive within the Office of Ethics and Compliance and Risk Management. In this podcast she reports that at least one case gender bias started to emerge, and people from certain ethnic backgrounds were being precluded from hiring due to zip code-based decision making.

This should set off alarm bells for compliance and ethics teams.

To help manage the risk, she recommends not blindly trusting the AI.  Compliance teams should take the time to consider four areas that are important for generating trust in the AI solution:

* Ethics: Does the solution agree with the values, mission and code of the organization?

* Social Responsibility: Does it have potentially negative social implications?

* Accountability: Is there clarity as to how the AI operates and the decisions it is supporting

* Reliability: Has it been tested rigorously?

Even before that, she advises compliance professionals to invest the time in understanding AI and the emerging rules:  both the European Commission and OECD have already issues AI principles.

Listen in to raise your own intelligence level about Artificial Intelligence.

By Adam Turteltaub

The world has grown enamored with Big Data and the promise of Artificial Intelligence (AI).  As the next big thing, many believe that it will be transformative for business, and even medicine, exposing patterns that humans miss, and enabling far better decision making.

But over the last few months, there has been a shift in the discussion as cases of less than compliant and not exactly ethical decisions were being made by the algorithms behind AI, reports Deborah Adleman, a Director with Ernst & Young LLP where she is the US and America’s Data Protection Leader and an executive within the Office of Ethics and Compliance and Risk Management. In this podcast she reports that at least one case gender bias started to emerge, and people from certain ethnic backgrounds were being precluded from hiring due to zip code-based decision making.

This should set off alarm bells for compliance and ethics teams.

To help manage the risk, she recommends not blindly trusting the AI.  Compliance teams should take the time to consider four areas that are important for generating trust in the AI solution:

* Ethics: Does the solution agree with the values, mission and code of the organization?

* Social Responsibility: Does it have potentially negative social implications?

* Accountability: Is there clarity as to how the AI operates and the decisions it is supporting

* Reliability: Has it been tested rigorously?

Even before that, she advises compliance professionals to invest the time in understanding AI and the emerging rules:  both the European Commission and OECD have already issues AI principles.

Listen in to raise your own intelligence level about Artificial Intelligence.

By Adam Turteltaub

Walk around most corporate compliance conferences and you’ll see people from virtually every industry, save one:  financial services.  Banks and the entire securities industry are largely absent, and yet, they have very extensive compliance programs.

Don Griffith, who is Head of Financial Crimes & Fraud Prevention Compliance for MassMutual, has unique insight into this issue.  He has worked in private practice, corporate compliance, financial services compliance and at the Securities & Exchange Commission.

As he explains in this podcast, the two compliance worlds have a very different perspective.  While corporate compliance tends to begin with a very broad view, starting from the approach outlined in the US Federal Sentencing Guidelines, financial services compliance programs were built to meet the need to comply with very specific regulations and securities law.

While these approaches are very different, there is much that each side can learn from the other, Don believes.  The financial services practice of digging down into business products and processes, for example, can be very instructive for corporate compliance efforts.  Likewise, the focus on ethics and the big picture issues in corporate compliance programs can provide lessons for financial services.

Listen in to learn more about how both financial service compliance professionals and corporate compliance professionals could benefit from each other’s expertise.

By Adam Turteltaub

Walk around most corporate compliance conferences and you’ll see people from virtually every industry, save one:  financial services.  Banks and the entire securities industry are largely absent, and yet, they have very extensive compliance programs.

Don Griffith, who is Head of Financial Crimes & Fraud Prevention Compliance for MassMutual, has unique insight into this issue.  He has worked in private practice, corporate compliance, financial services compliance and at the Securities & Exchange Commission.

As he explains in this podcast, the two compliance worlds have a very different perspective.  While corporate compliance tends to begin with a very broad view, starting from the approach outlined in the US Federal Sentencing Guidelines, financial services compliance programs were built to meet the need to comply with very specific regulations and securities law.

While these approaches are very different, there is much that each side can learn from the other, Don believes.  The financial services practice of digging down into business products and processes, for example, can be very instructive for corporate compliance efforts.  Likewise, the focus on ethics and the big picture issues in corporate compliance programs can provide lessons for financial services.

Listen in to learn more about how both financial service compliance professionals and corporate compliance professionals could benefit from each other’s expertise.

By Adam Turteltaub

You’ve just been offered a new job, or you’ve just offered a candidate a new position on your team.  Then the job seeker would like to negotiate on salary.  If it goes right, everyone is happy.  If it goes wrong, the hire may not be made, or the relationship could get off on a very wrong foot.

Steve Harrison, a partner at compliance executive search firm Conselium, reports that one of the greatest myths when it comes to hiring is that it is necessary to negotiate salary in the first place.  While many believe that it is expected, that’s not true.  In fact, it is perfectly acceptable and not a sign of some deficiency for a candidate to say yes to the offer, consider it a win and move on.

Sometimes, though, there is a need for some back and forth on salary, vacation time or other benefits.  In those cases, he advises in this podcast, it should never be done emotionally.  It’s important for both sides to recognize that this is a business conversation.  Have facts to back up your case and both sides should have a “yes” number and a “no” number in mind.

Another myth:  that the candidate should disclose his or her current salary.  In some jurisdictions that may not be required, but wherever the conversation takes place it is very helpful for there to be clarity on the candidate’s side of what his or her expectations are.  If that conversation doesn’t take place early enough, a great interviewing process may all be for naught.

Another way for hiring to go awry:  the hiring manager hands off the negotiation and final details to HR or some other part of the organization to handle.  It’s critical to stay involved so that whoever is handling things for the company understands why the person was recruited and the value that they can bring to the organization.

Whether you are looking for a new job or looking to hire, listen in to learn more about how you can make the hiring process much easier, and less likely to go awry.

By Adam Turteltaub

You’ve just been offered a new job, or you’ve just offered a candidate a new position on your team.  Then the job seeker would like to negotiate on salary.  If it goes right, everyone is happy.  If it goes wrong, the hire may not be made, or the relationship could get off on a very wrong foot.

Steve Harrison, a partner at compliance executive search firm Conselium, reports that one of the greatest myths when it comes to hiring is that it is necessary to negotiate salary in the first place.  While many believe that it is expected, that’s not true.  In fact, it is perfectly acceptable and not a sign of some deficiency for a candidate to say yes to the offer, consider it a win and move on.

Sometimes, though, there is a need for some back and forth on salary, vacation time or other benefits.  In those cases, he advises in this podcast, it should never be done emotionally.  It’s important for both sides to recognize that this is a business conversation.  Have facts to back up your case and both sides should have a “yes” number and a “no” number in mind.

Another myth:  that the candidate should disclose his or her current salary.  In some jurisdictions that may not be required, but wherever the conversation takes place it is very helpful for there to be clarity on the candidate’s side of what his or her expectations are.  If that conversation doesn’t take place early enough, a great interviewing process may all be for naught.

Another way for hiring to go awry:  the hiring manager hands off the negotiation and final details to HR or some other part of the organization to handle.  It’s critical to stay involved so that whoever is handling things for the company understands why the person was recruited and the value that they can bring to the organization.

Whether you are looking for a new job or looking to hire, listen in to learn more about how you can make the hiring process much easier, and less likely to go awry.

By Adam Turteltaub

When a compliance breach occurs, one would expect the compliance team to be a part of the crisis management team.  Crisis management expert James Green argues that compliance needs to be a part of the crisis management team regardless of the incident.  That’s because even a response to a natural disaster may have compliance implications.

For example, if a flood makes your office inaccessible, it may seem just fine to have employees work from home.  But, what if they are interacting with personal data?  Is their home network secure enough to protect it or are you opening yourself up to the risk of a data breach?

This edition of the Compliance Perspectives podcast also includes other important advice for managing a crisis, including:

* Pick crisis committee members not based on their title but based on their knowledge of how the business works

* Be sure your response is a fit with your culture, or you may end up creating even more problems

* Know in advance which authorities you need to contact, what method – mail, email, fax, phone – must be used, and by what date

* Make sure you keep your employees informed about what’s going on; it’s better than them finding out through the media

* Revisit your crisis plan regularly and test it periodically

Listen in to the podcast now.  You’ll be glad you did when the next crisis hits.

 

By Adam Turteltaub

When a compliance breach occurs, one would expect the compliance team to be a part of the crisis management team.  Crisis management expert James Green argues that compliance needs to be a part of the crisis management team regardless of the incident.  That’s because even a response to a natural disaster may have compliance implications.

For example, if a flood makes your office inaccessible, it may seem just fine to have employees work from home.  But, what if they are interacting with personal data?  Is their home network secure enough to protect it or are you opening yourself up to the risk of a data breach?

This edition of the Compliance Perspectives podcast also includes other important advice for managing a crisis, including:

* Pick crisis committee members not based on their title but based on their knowledge of how the business works

* Be sure your response is a fit with your culture, or you may end up creating even more problems

* Know in advance which authorities you need to contact, what method – mail, email, fax, phone – must be used, and by what date

* Make sure you keep your employees informed about what’s going on; it’s better than them finding out through the media

* Revisit your crisis plan regularly and test it periodically

Listen in to the podcast now.  You’ll be glad you did when the next crisis hits.

 

By Adam Turteltaub

Compliance success in a heavily-regulated industry likely means working hand in hand with the regulatory team.  Kasey Ingram, General Counsel and Chief Compliance Officer of ISK Americas, a global chemical company, knows this well.  Few industries are as regulated as the chemicals business.

As he explains in his latest podcast, success for him and his compliance program begins with understanding what compliance and regulatory each can do best.  He focuses on looking at the big culture controls while the regulatory department, which has the very specific knowledge of all the details, deals with the day-to-day activities.

To help ensure collaboration with regulatory, he advises that compliance be present, make sure people know who you are and are comfortable talking to you.  That way you go from the compliance guy to a person.  Second, build controls based on what people do and that both minimize interference and are easy to perform.  Finally, he advises that you do your best to know the rules:  if you can’t understand them you won’t have any credibility.

Listen in as he also provides a process for building a regulatory compliance program that recognizes the risks, has proper controls in place and enjoys the support of key business leaders (even the ones who initially weren’t happy about it).