Compliance into the Weeds

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I dive into the hot topic of clawbacks, with a focus on Deputy Attorney General, Lisa Monaco's new pilot program and Kenneth Polite's take on the use of prosecutorial discretion for organizations. Our hosts explore the opportunities for corporate compliance and HR personnel for clawback solutions and the use of the Federation Corrupt Practices Act (FCPA). They also discuss the need for thorough documentation of personnel involved with and/or accused of illegal conduct, as well as the potential costs to shareholders. Bottom line: Tom Fox and Matt Kelly are here to take you on a deep dive into the complexities of clawbacks and help organizations get compliant and stay compliant.Key HighlightsProsecutorial Discretion and Credit [00:05:24]Implications of the Foreign Corrupt Practices Act on Corporate Compliance and HR [00:09:41]The Mathematics of Corporate Policy Development and Management [00:13:59]Corporate Compliance and the Foreign Corrupt Practices Act [00:17:47]Balancing Compliance and Risk in Business Practices [00:21:49] Notable Quotes:1.     "It is part of the department's larger effort to hold individuals more accountable and to have companies basically be participants in that project and to have companies embrace the culture of compliance, how would you hold individuals accountable if you're the company, you'd have that clawback clause over their head, and then you would now have more incentive to actually use it, which is not necessarily an easy thing."2.     "What we expect companies that use programs to address not only employees who engaged and wrongdoing a connection with conduct under investigation, but also those who had supervisory authority over the employees or business area engaged in in the misconduct and knew of or were willfully blind to the misconduct." 3.     "You must have the clawback policies in place, at the time of resolution, then get a reserve credit for those clawback compensation moneys that you must successively claw it back within the term of the resolution." 4.     "If you do try to recoup the compensation and you fail, you'll still be eligible for up to 25 percent of whatever you were trying to recoup."" ResourcesMatt in Radical ComplianceTom in FCPA Compliance and Ethics Blog Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into data analytics. Tom and Matt provide information on how to capture the data within the enterprise and create a road map within the framework of DOJ's guidance. Additionally, they cover how Excel can be used and suggest giving the data "spit and polish" in order to run it through analytics programs. Compliance into the Weed's podcast is a must-listen for anyone needing information and strategies to excel in their work.Key Highlights·      The Implementation of Data Analytics Programs [00:03:21]·      The Business Relationships and Risk Assessment of Data Collection [00:07:17]·      The Benefits of Utilizing Internal Resources for Compliance Analytics [00:10:48] ·      Organizing and Utilizing Compliance Data [00:14:42]  ·      Creating a Road Map with Excel [00:18:04]Notable Quotes1.     "We all talk about data handling. We all say it's important. We go here a justice department official at some conference. He or she will talk about how important data analytics is how they use data analytics. And of course, if they in the public sector can afford to do it, then certainly, we in the private sector must be able to do it. Because government has no money and if they can do it, we must be able to do it." 2.     "It's easy to think it's important in the abstract, but how are you actually going to do it? That's the part that compliance officers need to think through." 3.     "We're really looking for outlier transactions. We're looking for anomalous events of some kind. We're also looking for trend analysis to see if big huge swaths of transactions are moving in a certain direction that might be troublesome."4.     "You need to be, I think, maybe more on your game with devising a good business case for data analytics. It's easy to think it's important in the abstract, but how are you actually going to do it?" ResourcesMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into having a values conversation to help companies start a conversation about values. If companies do not focus on values, a vacuum is created where employees are left to make their own decisions, and those decisions may not always be in the company's best interest. Tune into Compliance into the Weeds-Having a Values Conversation to learn how to start the conversation and create a culture of safety.Key Highlights·      The Importance of Workplace Safety [00:04:58]:·      The Need for Embedding Conversations about Values in the Workplace [00:09:00]·      Creating a Positive Corporate Culture. [00:12:26]·      The Dangers of Not Doing Corporate Compliance Properly [00:15:56] Notable Quotes 1.     "It makes a lot of sense to try and embed an awareness of them at the beginning, but it feels weird. It's kind of outside of people's comfort zone. It's especially outside of your comfort zone if you are not an ethics and compliance professional." 2.     "These questions can help people like that. And as you had mentioned before, middle managers are the crucial element in all of this." 3.     "It's easy for senior executives. To talk about ethical values. I think for a lot of low-level employees, those messages go in 1 ear and out the other because Why does anybody ever pay attention to what senior management says? It's your middle manager. It's your boss. You pay attention to what they say." 4.     "And these questions really are geared to help those managers, that audience, and their crucial tool." ResourcesMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into ChatGPT, a natural language processing tool that works by indexing every piece of written content on the Internet. We discuss the impact of the Biden administration's proposals for AI and discusses NIST's voluntary AI framework and  the utility of chat GPT in the workplace. What should your organization consider about incorporating AI into both their shipping decisions and mission-critical processes. If you're interested in efficient and advanced AI technology, you don't want to miss this episode. Key Highlights Include·      Impact of Chat GPT on Jobs -The Quality of Chat CPG for non-English Speakers·      The Biden Administration's Nonbinding Guidelines for Artificial Intelligence.·      The Benefits of Adopting a Voluntary AI Framework by NIST for Defense Contractors·      The Impact of Artificial Intelligence on Shipping and Work Processes Notable Quotes1. "Chat GPT can answer pretty much anything. It won't necessarily tell you where it is getting this information. It will just give you information pretty much like the way Tom, I am answering your question right now. Just imagine text-based bot answering those questions in the same way. That's what it is." 2. "Will it make your job easier? Probably for a lot of people who struggle to come up with written content. Yes, it could. But specifically then for compliance officers and let's bring it back to what matters for our audience. We'll chat GPT as used by others make my job harder. Compliance officers. Now I think, actually, you have a lot to worry about there, and we could get into that." 3. "But I just view this as a huge boom to anyone who is interested in research, anyone who is interested in learning, can't replace the weekly and business journalist, Matt. So you're good to go at Radical Compliance." 4. "But you have identified really, I think, the heart of the problem that compliance officers need to think about now. Because to me, it's just 1 more tool." Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into the recent Activision Blizzard settlement with the SEC for the company’s failings around internal controls regarding the detection and prevention of sexual harassment and its whistleblower protection laws.  Some of the highlights include:·      The background facts.·      The toxic culture which led to the claims.·      The denials by company officers that anything was wrong or to the validity of the claims. ·      How does this ruling tie into the Delaware court decision on the duty of oversight?·      Must there be a material risk for the creation of an information system?·      What about CCO certification?·      What does it all mean for CCOs going forward? ResourcesSEC OrderMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into recent decision by the Delaware Court of Chancery in the McDonald’s case creating a duty of oversight for corporate officers. Some of the highlights include:·      Why bad facts can make bad law?·      The sordid facts of David Fairhurst during his tenure at McDonald’s.·      The legal rationale.·      What is Caremark and how did it influence this decision?·      What does it mean for CCOs?·      How does this decision intertwine with the Monaco Doctrine, CCO certification and the new Corporate Enforcement Policy? ResourcesTom with a multipart series on the FCPA Compliance and Ethics BlogMatt Kelly with two posts in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a deep dive into the recent Kenneth Polite speech announcing changes to the Corporate Enforcement Policy. Some of the highlights include:·      What are the policy reasons for the change?·      Real credit now being given for effective compliance programs.·      What about self-disclosure?·      What is the new definition of an effective compliance program?·      Is the DOJ trying to avoid 5th Amendment concerns? Will it work?·      New percentage discounts and what they really mean?·      Why does Matt have more questions? ResourcesTom cited in CCIMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a look the recent SEC enforcement action involving Steve Easterbrook and McDonald’s. Some of the highlights include:·      Matt tells the tale.·      Should Easterbrook have originally been fired for cause for violating the company Code of Conduct?·      What were the factors for the Board in not terminating for cause?·      Should Easterbrook have been awarded a golden parachute the first time around? ·      Why did the SEC issue a Cease and Desist Order against McDonalds? ·      What, if anything, should McDonalds have disclosed? ·      What does this case say about clawbacks? Corporate culture?·      What are the lessons learned? ResourcesMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I take a look at the recent NY state Department of Financial Services sanction involving the crypto trading platform Coinbase, which just agreed to pay $50 million to the DFS and to spend another $50 million over the next two years to improve its compliance program. Some of the highlights include:·      What was the fine and associated spending for? ·      What did the Coinbase compliance program fail on?·      How did Coinbase’s explosive growth fuel a culture of non-compliance. ·      How did Coinbase fall further and further behind? ·      Why and how did the Coinbase solution worsen the problem? ·      Why does a company need to start with solid foundation of clearly defined procedures? ·      What is the role of an effective and efficient technology?·      What are the lessons learned? ResourcesMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I consider a list of compliance issues and events worth watching in the next 12 months, likely to happen in the coming year that will be most consequential for corporate compliance and audit professionals. For 2023 (at least at this point) it is the following:·      SEC rules on greenhouse gases. ·      PCAOB enforcement. ·      The FTC and privacy enforcement. ·      Fallout from the Oracle FCPA enforcement action.·      New DOJ corporate crime enforcement policies.·      An ESG controller.·      Crash and burn of Elon Musk style corporate governance.  ResourcesMatt Kelly in Radical Compliance Learn more about your ad choices. Visit megaphone.fm/adchoices