There are three core areas upon which Directors should focus their attention to help establish and maintain an effective compliance program. They are: (1) structure, (2) culture, (3) risk management.

Structural Questions

This area consists of questions which will aid in determining the fundamental sense of a company’s overall compliance program. The questions should begin with the basics of the program through to how the program operates in action. Some of the structural questions Board members should ask are the following.

Cultural Questions

This area of inquiry should focus on the culture of the organization regarding compliance. Board members should have an understanding of what message is being communicated not only from senior management but also middle management. Equally important, the Board needs to understand what message is being heard at the lowest levels within the company. Some of the cultural questions Board members should ask are the following.

Risk Management Questions

Board members need to understand the company’s process being used to identify emerging risks, their evaluation and management. Such risk analysis would be broader than simply a compliance risk assessment and should be tied to other broader corporate matters.

Three Key Takeaways