Driving Top-Level Commitment. The road to compliance begins with educating the C-Suite

Transcription

1 Driving Top-Level Commitment The road to compliance begins with educating the C-Suite

2 We need to manage risk related to antibribery laws! How much will this cost? Who will do this? How big is our risk? How many vendors do we have? What is a facilitation payment?

3 Agenda Introduction Compliance Officers as Change Leaders Demystifying Complex Compliance Programs» Asking the right questions Answering the Questions Gaining Top-Level Commitment» Education of the C-suite and even BOD Risk Assessments as Education Platforms Next Steps

4 The Essence of Anti-Bribery Regulation FCPA UK Bribery Act CFPOA It violates our company policy as well as the law, to give a thing of value, directly or indirectly, to gain or retain business

5 Risks Bribery Act(s) Violation» Significant penalties and disgorgement» Mandated External Monitor» Civil and criminal action against corporation» Civil and criminal actions against executive leadership» US Government debarment Corporation and Leadership» Difficulty in obtaining new business relationship, joint ventures and partnerships.» High scrutiny for any future foreign government involved relationships. SOX Violations» Financial Restatements» Market capitalization risk» Shareholder actions Dodd / Frank Act» Whistle Blower protection and compensation

6 Anti-Bribery Compliance Benefits Consistency» Consistent implementation allows company to operate at the highest level of ethical standards Third Party Focus» Enhance the Third Party Due Diligence Process that facilitates anti-bribery compliance» Enhance consistent third party screening policies worldwide Top-Level Involvement» Create evidence of our commitment to anti-bribery» Protect the company and its leadership against criminal and civil prosecution and reputational damage Strengthen control, visibility & compliance

7 Compliance Services Market Accelerating Program Design & Advisory Education Hotlines & Case Mgmt Data Collection & Mgmt Discovery & Risk Scoring Due Diligence Research Forensic & Investigative Services Legal Support Services Accounting Controls Implement compliance rules, controls and procedures Management of formal program to train and certify understanding of FCPA provisions Implement a system for reporting suspected criminal conduct ( whistleblower lines ). Implement a vendor registration program Develop, promulgate and certify a corporate compliance policies Tier and flag vendors based on risk Research and analyze vendors for PEP relationships and illicit activities Respond to fraud or other illicit activities. through forensic analysis of books while offering evidence through investigations Provide litigation support, investigations, and compliance guidance Implement a system of financial and accounting procedures Prevention Remediation 7 Kroll

8 Why are Corporations Still Concerned? Unsure about how to get started» Austerity programs cause us to be resistant to ask for monies / resources Too many unknowns» Number of Third Parties, Third Party expansion, how much risk Program is complicated and unfamiliar» Compliance is often times bandwidth constrained Internal corporate risk isn t clear Budgets are undefined Risk tolerance is subjective

9 UK Bribery Act Guidance Top Level Commitment Risk Assessment Adequate Procedure Communication Risk Based Due Diligence Monitor and Review 9 Kroll

10 Top-Level Commitment Allocate Resources Command departmental support Establish Risk Tolerance Lead on communication Create culture of anti-bribery Create commitment to adequate procedures

11 Gaining Top level Commitment Anti-Bribery Training» Fewer than 50% of companies have trained their BODs Executive Committee» Socialize importance of Anti-Bribery Compliance Risk Assessment» Identify Risk Audit committee update» Socialize your commitment to ongoing monitor Board Of Directors update» Remain diligent in keeping Bribery top of mind

12 Top level Commitment Anti-Bribery Training» Fewer than 50% of companies have trained their BODs Executive Committee» Socialize importance of Anti-Bribery Compliance Risk Assessment» Identify Risk Audit committee update EVIDENCE OF TOP-LEVEL» Socialize your commitment to ongoing monitor Board Of Directors update COMMITMENT» Remain diligent in keeping Bribery top of mind

13 Risk Assessment Case Study Company is in a high risk industry (extractions) Company operates in high risk markets (highly corrupt countries) Industry is a current target for special attention by the Department of Justice, SEC, SFO, IRS, RCMP Several competitors / partners have been targeted, implicated and indicted for violations Successor liability risk due to acquisitions Inability to identify current Vendors, suppliers, Third Parties to perform complete risk assessment.» 50,000 + in A/P Systems.» Duplicates, insufficient information» No consistent processes for adding / deleting or onboarding new suppliers Divisional push back- Not receptive to compliance requests Identified highest risk third parties» Low confidence in completeness Uncovered multiple incidents Limited Third Party DD program» Policy, questionnaire, audit controls, Business practices statement, no -due diligence performed No process for investigations» Policies, procedures, budgets, resources, engaged partner. Limited authority of compliance

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