COMBATING BRIBERY & CORRUPTION THROUGH INFORMATION INTELLIGENCE

Transcription

1 COMBATING BRIBERY & CORRUPTION THROUGH INFORMATION INTELLIGENCE

2 SETTING THE CONTEXT Anti-bribery and corruption continues to be a high priority Sustained enforcement and increasing regulator expectations, both in the U.S. and abroad Near record year for corporate FCPA settlements Globalization of anti-corruption enforcement Increased focus on effective internal controls Continuing government emphasis on benefits of selfdisclosure and cooperation Heightened government attention to pursuing culpable individuals 2

3 ANTI-BRIBERY AND CORRUPTION COMPLIANCE Enforcement & Remediation Oversight Monitoring and Auditing Policies and Procedures Reporting and Communication Risk Assessments Education and Training 3

4 PARTNERING WITH THE BUSINESS TO EVALUATE COMPLIANCE RISKS To be successful, compliance monitoring has to demonstrate value to the business. Business leaders can be included throughout the process to create an approach that is meaningful and executable. Business takes ownership of improvement plan Risk Assessment Align with Business to identify and prioritize key risk areas Prioritize and Plan Agree with the business on top priorities Monitoring and Feedback Communicate results and agree on response, implement enhancements 4

5 DATA ANALYTICS KEY ASPECT OF A COMPREHENSIVE COMPLIANCE PROGRAM Nearly all companies have challenges implementing a consistent and rigorous analytics effort worldwide. Disparate systems and various ERP platforms make data collection itself a monumental challenge. Data Analytics allows testing and improvement in risk assessment and controls effectiveness while demonstrating a good faith effort at comprehensive compliance monitoring. Beyond an ABC context, data analytics provides meaningful insights into transactional data and 3rd party risks across your entire organization. The more complex, fragmented and disparate your IT systems, the more data analytics can add value, reduce costs and make your compliance and investigation functions more efficient. 5

6 ART OF THE POSSIBLE Pre-approval Data Transactions Contracts Advanced Analytics Open Payments? Grants & Sponsorships Advisory Boards? Vendor Master TPI Due Diligence Triage Log Data Engine Distributors? Travel & Entertainment a Speaker Boards HR Data Third Party Data CROs HCP Payments? FFS Sales Data General Ledger 6

7 DATA ANALYTICS SAMPLE RISKS / SOLUTIONS Risks related to promotional and non-promotional activities include inappropriate transfers of value to healthcare professionals and healthcare institutions Gifts, meals, entertainment Evaluate compliance with individual and aggregate meal caps Compare against credit card data Consider prior Persons of Interest and higher risk sales rep Pods to target transactions Compare trends of line manager s reporting structure expense approval processes Speaker programs & Ad Boards Pre-approval timing, HCP frequency and total spend Relative spend in business unit against sales and plan HCP selection, specialty and FMV Venue selection (prohibited list) Results from live monitoring Global Clinical Trials / Operations Proactively monitor business need, HCP selection, location selection, frequency of use of the same HCP, contract, training, HCP reimbursements / payments Cross-check total activity across all trials, how many getting paid across multiple trials, how many had similar patients enrolled for multiple trials? 7

8 POD ANALYSIS HR data can help identify the root cause: Subordinates with red flags Peers with red flag The Approver could be the Real problem District Manager Sr. Sales Rep Sr. Sales Rep 8

9 VISUALIZATION EMPOWERS UNDERSTANDING Summary View Business Purpose View < $250K $250K - $499K $500K - $750K >$750K T&E SPEND BY MONTH $1,000,000 40% $900,000 35% $800,000 $700,000 30% $600,000 25% $500,000 20% $400,000 15% $300,000 $200,000 10% $100,000 5% $0 0% Split / Duplicates View EXPENSE TRENDING % Outlier View PROFILING & STATISTICS T&E BY EXPENSE TYPE Count Total no. reports 721 Total no. persons 78 Avg. no. reports 9.2 Count Meals 573 Lodging 121 Conferences 56 Airfare 478 Gifts 1,132 Education 422 Miscellaneous 98 Other 4,324 Scores & Weights Amount Local Amount Local Amount USD Avg. report total $ 544 Avg. line amt $ 89 Min line amt $ 1 Max line amt $ 1,445 Missing purpose 59 $ 4,379 Amount USD Filters Country CPI Score Fiscal period Business Unit Product Expense Type Domestic / Foreign Personal vs. Business G/L Code Supervisor Range of Amount (USD) All Selection Selected, % of BU Selected, % of Company 9

10 SAMPLE COMPLIANCE MONITORING DASHBOARD Behavioral Analytics Example: Snap shot of payments to physicians by three companies Company A Company B Other applications: Dinner clubs find speaker programs attended by the same cluster of speakers or attendees Spend areas identify physicians with high payments in multiple categories (consulting, speaking, research) HCP specialty identify HCPs being hired by different internal BUs John Smith MD Company C received payments from all three Companies 10

11 ACHIEVING INSIGHTS THROUGH REAL- TIME AND HISTORICAL TRENDS Proprietary cloud-based big data analytics platform ideal for both event-driven and continuous monitoring of vital topics, keywords, events, or individuals Real-time analytics across multiple data sources including social media and upto-the-minute broadcast data (e.g. TV, radio) Surfaces the unknown unknowns so you can identify trends as they break without knowing about them beforehand Breaking news, spiking content, new topics, audience shifts, emerging threats & opportunities Assists with risk and threat detection, crisis management, consumer insights, customer analytics, investor relations, product innovation and marketing optimization. 11

12 Thank you! Marc Miller Partner