compliance strategy and performance

Live WebinarFebruary 10, 2016

A SPECIAL WEBCAST FROM ETHISPHERE AND

COMPLIANCE STRATEGYAND PERFORMANCE

© 2015. All Rights Reserved | 2

SPEAKERS

Patrick QuinlanCEOConvercent

Erica Salmon ByrneExecutive Vice President, Compliance & Governance Services Ethisphere

AgendaKey Data & Benchmarksto leverage

Emerging Best Practicesto adopt

Predictions for 2016 to keep a close eye on


INFLUENCE & STRATEGY


Budgets and visibility trending upwards


TREND ALERT

“Whether the compliance officer reports to the general counsel or the CEO is not going to govern an analysis of

whether the compliance function is working. What’s more important than where compliance is housed

is the independence of the function, that the compliance officer has a ‘voice at the table’ and

can be heard by the board.”—Andrew Weissmann

Chief, Fraud Section – Criminal DivisionU.S. Department of Justice16%

of surveyed CCOs report to the CEO, compared to 36% of the World’s Most Ethical Companies.


Compliance more informed, but not influential


Risk assessments, not strategy, driving compliance priorities


TREND ALERT

“Buyers splashed out $3.8 trillion on mergers and acquisitions in 2015, the highest amount ever.”

34% of employees at companies in M&A situations experienced retaliation—twice the rate as more stable workplaces.

27% increase in observed misconduct during M&A transitions


DATA & METRICS


Lack of data availability, access and centralization


TREND ALERT

“ Strong compliance must be data-driven. A good compliance officer should be able to rattle off a list [of

the types of data they would monitor] off the top of their heads and their list will tell me the level of their sophistication as a compliance professional. Similarly, when I look at compliance programs, the kind of data that they do and do not monitor tells me a

lot about how sophisticated their program is.”

—Hui ChenCompliance Expert, Fraud Section

Criminal DivisionU.S. Department of Justice


Compliance drawing on other department data


TREND ALERT

“Every piece of your program needs to actually be tied to the operations of your company. When you

don’t tie those systems together, it’s very easy to ignore the other system that’s not necessary to make

the transaction happen.”

—Hui ChenCompliance Expert, Fraud Section

Criminal DivisionU.S. Department of Justice


ROI most desired—and elusive—metric


TREND ALERT

“ Companies have searched for reasonable metrics to assess how likely their employees are to follow their

rules...But years into this quest, many compliance experts are no closer to agreeing what exactly a culture of

compliance is or how to measure it.”


PROGRAM REPORTING


State of the program reports delivered at least annually


Report frequency, content, format and audience vary


TREND ALERT

“ A firm’s culture is a key driver behind the behavior of those in it. In many cases, where things have gone

wrong in a firm, a cultural issue is at the heart of the problem.”

—UK Financial Conduct AuthorityCompliance Culture—A Timeline of Regulators’ Comments

WSJ

http://blogs.wsj.com/riskandcompliance/2016/02/05/compliance-culture-a-timeline-of-regulators-comments/

http://blogs.wsj.com/riskandcompliance/2016/02/05/compliance-culture-a-timeline-of-regulators-comments/


TREND ALERT

“ The fact is that many of our internal processes, controls, and actions around compliance have been

inadequate, and some decisions have just been plain wrong. As a result, [CEO Conrad] Parker has

resigned. In order for us to move forward as a company, we cannot seek to hide or downplay the problem. We

must admit it and remediate it as soon as possible.

—David SacksCEO, Zenefits

BusinessInsider

http://www.businessinsider.com/parker-conrad-is-out-as-zenefits-ceo-and-david-sacks-takes-over-2016-2


Inconsistent Reporting Practices


Q&A

compliance strategy and performance

Marketing