Compliance Perspectives

By Adam Turteltaub

Editor’s Note:  Chris Bohjalian’s latest novel The Flight Attendant just made the NY Times Bestseller List.  We are sharing his October 2017 podcast with us again in case you missed it.  We hope you enjoy his perspective on ethics in fiction and in real life.

One of the stranger things in compliance and ethics is that if you sit people down for compliance and ethics training, they tend to issue at a minimum a silent groan.  Yet, those same people will happily sit down with a novel where the protagonist is wrestling between right and wrong.

There is much that can be learned from the ability of novels, as well as TV and movies, to help us learn about right and wrong.  This media can also teach us a great deal about how we react when we see others behaving badly.

To explore this issue I sat down for a podcast with Chris Bohjalian, whose book Midwives was selected for Oprah’s Book Club.  His novel The Sleepwalker was just released in paperback, and in March 2018 (not 2019 like I said in the interview) his newest book, The Flight Attendant, arrives.

Listen in to the podcast as we discuss:

* The human fascination with moral ambiguity and people who do the wrong thing

* Our fascination with how good people can do the wrong thing and the recognition that we easily could make moral mistakes

* The influence of television, movies and books on whom we see as good and evil

* Our discomfort with people who are “too good”

* What Tony Soprano and Don Draper have done to our perception of what people will tolerate

* The notion that “it’s only business, nothing personal” and the problems that may create

* The cover up being worse than the crime and the value of stopping problems when they are small

* Why people welcome ethical dilemmas, and right and wrong in novels, films and TV, but not when it is a part of training

By Adam Turteltaub

Hossam El Shaffei from RSM Consulting is an expert on doing business in the Middle East.  An Egyptian by birth, he has worked throughout the region and currently calls Jordan his home (not Lebanon as I mistakenly said on the podcast).

We met in Abu Dhabi at the ACFE regional conference there, and his insights were deep and plentiful.  He agreed to share them in this podcast.  Listen in as he explains:

* It is important to realize that there is no one culture in the region, but many

* Things like baksheesh, the giving of gifts, is common but has risen from a voluntary gift for helping you to an outright bribe that is often considered required

* Tribal cultures and family-owned businesses are much more common

* Sanctions are a particular risk since they are not consistently followed

* Tone at the top is critical

* Whistleblowing is a challenge in the Middle East, as it is elsewhere, including protection against retaliation.

By Adam Turteltaub

Hossam El Shaffei from RSM Consulting is an expert on doing business in the Middle East.  An Egyptian by birth, he has worked throughout the region and currently calls Jordan his home (not Lebanon as I mistakenly said on the podcast).

We met in Abu Dhabi at the ACFE regional conference there, and his insights were deep and plentiful.  He agreed to share them in this podcast.  Listen in as he explains:

* It is important to realize that there is no one culture in the region, but many

* Things like baksheesh, the giving of gifts, is common but has risen from a voluntary gift for helping you to an outright bribe that is often considered required

* Tribal cultures and family-owned businesses are much more common

* Sanctions are a particular risk since they are not consistently followed

* Tone at the top is critical

* Whistleblowing is a challenge in the Middle East, as it is elsewhere, including protection against retaliation.

By Adam Turteltaub

The world is often a difficult place in which to do business.  Many countries lack the rule of law, are corrupt, and make it hard for a company to do business and to do so lawfully and ethically.

The Center for International Private Enterprise (CIPE) is trying to make a difference.  Its mission is to strengthen “…democracy around the globe through private enterprise and market-oriented reform.”  That mission puts them on the forefront of the fight against corruption.

In this podcast, Frank Brown, the Director of the Anti-Corruption and Governance Center at CIPE, provides an overview of the Center for International Private Enterprise and its work outside the US.

The podcast shares some notable progress.  As he explains, there is a very strong anti-corruption wave in Indonesia, and the KPK, the anti-corruption authority there, has had a 100% conviction rate.  In so doing, it has become a model for much of the world.

In this far-ranging conversation he discusses:

* The traction ISO 37001 is gaining in some countries, but not others

* Due to the new French anti-corruption law, a very specific approach to how state-owned enterprises should act is starting to spread

* Some mid-sized firms are not always motivated to change their behavior because they may not see the benefits of an anti-corruption compliance program because they feel that they are not likely to be prosecuted

By Adam Turteltaub

The world is often a difficult place in which to do business.  Many countries lack the rule of law, are corrupt, and make it hard for a company to do business and to do so lawfully and ethically.

The Center for International Private Enterprise (CIPE) is trying to make a difference.  Its mission is to strengthen “…democracy around the globe through private enterprise and market-oriented reform.”  That mission puts them on the forefront of the fight against corruption.

In this podcast, Frank Brown, the Director of the Anti-Corruption and Governance Center at CIPE, provides an overview of the Center for International Private Enterprise and its work outside the US.

The podcast shares some notable progress.  As he explains, there is a very strong anti-corruption wave in Indonesia, and the KPK, the anti-corruption authority there, has had a 100% conviction rate.  In so doing, it has become a model for much of the world.

In this far-ranging conversation he discusses:

* The traction ISO 37001 is gaining in some countries, but not others

* Due to the new French anti-corruption law, a very specific approach to how state-owned enterprises should act is starting to spread

* Some mid-sized firms are not always motivated to change their behavior because they may not see the benefits of an anti-corruption compliance program because they feel that they are not likely to be prosecuted

By Adam Turteltaub

The EU’s new General Data Protection Regulation (GDPR) is due to come into effect on May 25, 2018, and it is a game changer for companies in Europe and around the world.

Robert Bond, a member of the board of the Society of Corporate Compliance and Ethics and Health Care Compliance Association, and a partner at the law firm of Bristows in London, explains that it is a different regime since it applies both to controllers of data and the processors who manage the data.

Notably, the new GDPR is also extraterritorial, applying to businesses in non-EU countries if they are handling the data of EU citizens.  Companies in the US, accustomed to dealing with US requirements and having privacy policies based on US laws, may be in for a bit of a shock and will need to do some work to see how their policies measure up to this new, higher bar.

As Robert explains in the podcast, to start complying, companies need to understand the who, what, when, why, where and how of what data they are collecting, as well as what data they already have.  In addition, the more sensitive the data, the higher the ante in terms of complying.

Costs for non-compliance can be as high as 4% of global avenue revenues.  Plus, class action law suits are likely to occur, and under the law only need to prove emotional distress, not actual financial loss.

Listen in to learn more, including what companies need to do first to begin complying with the new GDPR.

By Adam Turteltaub

The EU’s new General Data Protection Regulation (GDPR) is due to come into effect on May 25, 2018, and it is a game changer for companies in Europe and around the world.

Robert Bond, a member of the board of the Society of Corporate Compliance and Ethics and Health Care Compliance Association, and a partner at the law firm of Bristows in London, explains that it is a different regime since it applies both to controllers of data and the processors who manage the data.

Notably, the new GDPR is also extraterritorial, applying to businesses in non-EU countries if they are handling the data of EU citizens.  Companies in the US, accustomed to dealing with US requirements and having privacy policies based on US laws, may be in for a bit of a shock and will need to do some work to see how their policies measure up to this new, higher bar.

As Robert explains in the podcast, to start complying, companies need to understand the who, what, when, why, where and how of what data they are collecting, as well as what data they already have.  In addition, the more sensitive the data, the higher the ante in terms of complying.

Costs for non-compliance can be as high as 4% of global avenue revenues.  Plus, class action law suits are likely to occur, and under the law only need to prove emotional distress, not actual financial loss.

Listen in to learn more, including what companies need to do first to begin complying with the new GDPR.

By Adam Turteltaub

“Root cause analysis” is an oft-used phrase in compliance, but what is it in practice?  In this podcast, Leigh Faugust, Counsel at the North American Electric Reliability Corporation (NERC) brings insight into what root cause analysis is and how to do it properly.

She explains that

* Root cause analysis looks at what happened, why it happened and should it have happened

* Getting to the root cause uses iterative digging: asking a “why” question over and over again until you get to something that you can fix

* Generally, five why questions are enough to identify the controls you need to make sure you can get to and fix what went wrong

* One key to success is to put together a team of subject matter experts to help you identify what happened

* Once there is a clear picture of the problem can start figuring out why it happened

* Having a good report writer is essential to help ensure support of the change

* Identifying a problem as human error is really the start, not the end

Listen in and better understand how to get to the roots of your compliance challenges.

By Adam Turteltaub

“Root cause analysis” is an oft-used phrase in compliance, but what is it in practice?  In this podcast, Leigh Faugust, Counsel at the North American Electric Reliability Corporation (NERC) brings insight into what root cause analysis is and how to do it properly.

She explains that

* Root cause analysis looks at what happened, why it happened and should it have happened

* Getting to the root cause uses iterative digging: asking a “why” question over and over again until you get to something that you can fix

* Generally, five why questions are enough to identify the controls you need to make sure you can get to and fix what went wrong

* One key to success is to put together a team of subject matter experts to help you identify what happened

* Once there is a clear picture of the problem can start figuring out why it happened

* Having a good report writer is essential to help ensure support of the change

* Identifying a problem as human error is really the start, not the end

Listen in and better understand how to get to the roots of your compliance challenges.

By Adam Turteltaub

Jeff Williams works now as a compliance director, but before that, he had been working in accounting with experience in external audit. He was no stranger to the world of compliance, but, as he notes, there’s a huge difference once you move into the role.

In this podcast he shares his experience and what an accountant or auditor considering a role in compliance should know. Listen in as he discusses the working understanding he had of compliance going in.  He rightly understood the job to be about creating internal controls, managing risk, teaching the workforce, building trust and serving as a go-to resource.  Once he got into the job, though, he was met by some surprises, including how dreaded an appearance from the compliance officer could be.

He addresses how he learned the new role, and how it’s important to make sure others understand that compliance officers are human beings who are there to listen to and support the business team.

From a skills perspective, he shares that an accounting background is a great asset since it provides experience in looking for consistency in controls and understanding what the controls to be.

But, there are adjustments to be made such as working on a much smaller team.

This podcast is a valuable asset for anyone from accounting looking to make the leap into compliance, and for compliance officers adding someone with an accounting or audit background to their team.