CEP Magazine

  1. Meet Justin Ross: Delivering compliance globally

    CEP Magazine - December 2020  | December 2020 

    Justin Ross, Staff Vice President, Chief Compliance Officer at FedEx Corporation in Memphis, Tennessee, USA...

  2. Upgrade your employee survey for more accurate results

    CEP Magazine - December 2020  | Author: Troy McAlister  | December 2020 

    Compliance professionals are constantly looking for ways to accurately assess the effectiveness of their program’s individual elements. Some elements leave distinct audit trails, such as third-party vetting or gifts and entertainment, which can be tested and audited. With other areas, such as strategic planning or internal investigations, you may be so heavily involved, you already know where the successes live and the skeletons are buried. Then there are concepts such as culture, willingness to report concerns, or simply knowing whom to talk to and where to find company resources, which you have to get feedback from across your employee base...

  3. Collaboratively building effective third-party risk management processes

    CEP Magazine - December 2020  | Author: Veronica Pickens  | December 2020 

    Although the financial sector has been the leader in implementing third-party risk management processes, other sectors have understood its importance and followed suit. In the financial industry, the importance of third-party management was elevated in 2013 when the U.S. Office of the Comptroller of the Currency mandated that all regulated banks were required to manage the risk of their third parties.[1] The healthcare industry also has several regulations that led to the need for third-party management; the Health Insurance Portability and Accountability Act[2] sets the standard for protecting private patient data. Another example is the Health Information Technology for Economic...

  4. Effective risk assessments in the evolving antitrust compliance landscape

    CEP Magazine - December 2020  | Authors: Peter D. Bernstein, Andrew C. Finch  | December 2020 

    Last year, the United States Department of Justice (DOJ) Antitrust Division announced a significant change in its policy regarding the treatment of corporate antitrust compliance programs in its enforcement decisions. Along with that policy change, the division offered insight into how companies should approach the design and implementation of compliance programs. A key element of any compliance program is that it should be effective in deterring and detecting anticompetitive conduct, and an effective risk assessment to determine where, when, and how antitrust issues are most likely to arise is key. When companies are able to target areas of heightened antitrust...

  5. Using organizational alliances to meet compliance objectives

    CEP Magazine - December 2020  | Author: Tosin Umukoro  | December 2020 

    According to the United States Department of Justice’s Evaluation of Corporate Compliance Programs, effective implementation of a compliance program requires those charged with the program’s day-to-day oversight to act with adequate authority and stature.[1] Sufficient resources, seniority within the organization, and autonomy from management are all factors that prosecutors take into consideration when investigating an organization to ultimately determine whether to bring charges, negotiate a plea bargain, or come to other agreements...

  6. Turning the page on 2020 for SCCE

    CEP Magazine - December 2020  | Author: Gerry Zack  | December 2020 

    The year 2020 won’t be remembered fondly by many people. We’ve been enduring the health and economic effects of a pandemic, social unrest, and, here in the United States, devastating wildfires throughout the western part of the country. It’s been so bad that we now see “2020” used as a verb, often followed by the word “it.”...

  7. Maximize compliance's impact by choosing applicability over accessibility

    CEP Magazine - December 2020  | Authors: Brian K. Lee, Dian Zhang  | December 2020 

    In the past three years, nearly 40% of compliance leaders report increasing training time by 10%–50%.[1] COVID-19 has compounded the problem: 64% of legal and compliance leaders are now providing more guidance and messaging during the crisis.[2] Further, compliance is one of many functions releasing guidance, and sifting through it all is a significant burden for employees...

  8. Farewell column

    CEP Magazine - December 2020  | Author: Steve Priest  | December 2020 

    I have been writing this column for six years. For this last column, walk with me down memory lane as I share a few insights from 30 years in the business of business ethics...

  9. Culture assessments: The short course

    CEP Magazine - December 2020  | Author: Jeffrey M. Kaplan  | December 2020 

    As a matter of law and common sense, any compliance and ethics (C&E) program assessment should include a healthy dose of culture. But where should one begin?...

  10. Compliance in the age of cost containment

    CEP Magazine - December 2020  | Author: Jennifer L. Kennedy  | December 2020 

    Well, for some of us, the time has come—cost containment. Whether it’s a pandemic, or just the usual economic cycle, every industry faces times of cost containment. How does a compliance department survive in these times? It’s a message that I’ve been preaching since I found myself in a compliance role over a decade ago. (In fact, I wrote about it in a 2017 column called “Luxury items.”)[1]...

  11. Anticipating and overcoming objections

    CEP Magazine - December 2020  | Author: Kristy Grant-Hart  | December 2020 

    “I don’t have the time.” “That’s too expensive.” “I have to ask my boss.” Great salespeople know that they will hear objections. In sales training, people are taught to both anticipate objections and have preplanned responses that can steer the conversation back toward success. Many salespeople think that a lack of objections is a bad thing because it shows disengagement. How can we use objections to help us sell our initiatives?...

  12. To the one with a hammer, everything looks like a nail

    CEP Magazine - December 2020  | Author: Joe Murphy  | December 2020 

    If your focus is X, you tend to see X. If your tool is a hammer, you tend to see nails. What is the message in our field? If you are accustomed to seeing compliance a certain way, then guidance from the government can tend to confirm your bias. This may explain why, so often, when I see commentators talking about different guidance documents from the government, they tend to focus on just the points they expected to see and omit very significant points that are not on their own personal list...

  13. Mitigating fraud risk in a COVID-19 world

    CEP Magazine - December 2020  | Author: Paul Greenspan  | December 2020 

    When COVID-19 took the world by storm in early 2020, it brought about unprecedented changes to business operations, including in the areas of corporate compliance and fraud risk. Many commentators at the time noted the pandemic could create the “perfect storm” for fraud due to increased financial pressures on employees and businesses coupled with decreased oversight in remote work environments. The Association of Certified Fraud Examiners conducted a survey in April–May 2020 and reported that 68% of respondents had already seen an uptick in fraud and 93% expected fraud to increase over the coming year.[1] With the pandemic apparently not...

  14. Can non-law graduates qualify for compliance positions? Of course!

    CEP Magazine - December 2020  | Author: Vivian Zhou  | December 2020 

    I’ve received many questions lately from students who are about to graduate—and even those who are already engaged in other sectors—that sound like, “I’m not a law graduate, and I have no compliance-related working experience. Can I apply for compliance positions?”...

  15. Food for thought: The social-ecological business ethics model in action

    CEP Magazine - December 2020  | Author: Daniel Brady  | December 2020 

    I’ve written previously about the social-ecological model as a construct for understanding how businesses can influence employees’ ethical behavior.[1] This approach starts with the premise that our behaviors are influenced when we receive the same or similar information from different sources, in various ways, at different times. This essentially creates an environment—an ecosystem—that delivers consistent messaging and wherein changes in behavior become all but guaranteed. Not long ago, I observed this model at work in an unlikely place: an elementary school environmental learning center cafeteria. The benefits and the downside of this model were on full display...

  16. Be hard on your work, never yourself

    CEP Magazine - December 2020  | Author: Vuslat Eksi  | December 2020 

    Every profession comes with its own stresses and even the occasional traumas. We have become so integrated with our work roles that sometimes it becomes difficult to separate the two. We often hear about compassion fatigue of doctors, nurses, social workers, or attorneys, but one role for which we often neglect to mention mental wellness is the ethics and compliance officer...

  17. Consistency and transparency: Getting connected products to reflect organizational values

    CEP Magazine - December 2020  | Author: Breann McNeil  | December 2020 

    From tennis rackets to crockpots, “smart” products are now available everywhere for the general consumer. On a daily basis, companies are considering how consumers might want to use technology in everyday items, what will control the devices, what services will be attached to use the device, and how they would interact on the Internet of Things (IoT). If the organization you are working for does not yet have a connected device or service related to IoT in the marketplace, it is only a matter of time...

  18. H&M fined 35 million euros for GDPR violation

    CEP Magazine - December 2020  | Author: Sascha Matuszak  | December 2020 

    The Hamburg Data Protection Authority issued their largest fine[1] ever under the General Data Protection Regulation (GDPR) for employee-related offenses. A fine of more than €35 million was levied against Hennes and Mauritz AB (H&M), a Swedish clothing company...

  19. JPMorgan pays record fine for 'spoofing'

    CEP Magazine - December 2020  | Author: Sascha Matuszak  | December 2020 

    The United States Department of Justice (DOJ) and the U.S. Securities and Exchanges Commission announced a deferred prosecution agreement with JPMorgan Chase & Co., including a fine of $920 million, for manipulating markets and defrauding consumers.[1]...

  20. South Korean national receives record payout

    CEP Magazine - December 2020  | Author: Sascha Matuszak  | December 2020 

    A record payout to a foreign national by the United States whistleblower program may incentivize other foreign nationals to come forward and report wrongdoing.[1] The payout of $36 million went to Koo Byoung-jin, a South Korean national who found that his business associates were price-rigging to defraud the US government...

  21. Hewlett-Packard fined for inflating sales and deluding stakeholders

    CEP Magazine - December 2020  | Author: Sascha Matuszak  | December 2020 

    The U.S. Securities and Exchange Commission (SEC) issued a fine of $6 million[1] against Hewlett-Packard (HP) to settle allegations that the company inflated sales and misled investors and stakeholders. HP allegedly used a tactic to “pull in” sales it had not yet made as well as move cheap product through distributors that resold outside of their markets to inflate numbers and obscure the true state of the company. The company failed to disclose its practices, which occurred in 2015 and 2016...

  22. Meet Cansu Eray: Multicultural teams lead to success

    CEP Magazine - November 2020  | November 2020 

    Cansu Eray is Director of Corporate Strategy at Fonet Information Technologies Inc., Founder of F-Ray FinTech, and Author of Multinational Banks and Foreign Expansion Decisions in Ankara, Turkey...

  23. 'Championing' your compliance program

    CEP Magazine - November 2020  | Author: Matt Silverman  | November 2020 

    For those compliance leaders with the budget and capability to hire full-time, dedicated compliance professionals in every region and at every site in which your business operates … read no further. (You are one of the few and lucky ones!) For the rest, who may struggle to add compliance head count or to convince management of the value of compliance that cannot be easily seen on a quarterly report or stock price … read on...

  24. Compliance and governance in high-tech and agile delivery environments

    CEP Magazine - November 2020  | Author: Eric Brotten, JD, CCEP-I, CCEP  | November 2020 

    No matter the industry, “Every company is now a technology company.”[1] This means that whether you are a compliance professional supporting financial services, retail, farming, logistics, automotive, healthcare, media, or even food, you need to meet your business partners where they are. Regulators and enforcement agencies are also abuzz with the emerging fields of artificial intelligence, blockchain, data protection and governance, the gig economy, the International Organization for Standardization, tech ethics, and cryptocurrency. Increasingly, business teams are deploying via continuous delivery, or agile and scrum methodologies. As a result, today’s compliance professional needs to understand the intersection of traditional compliance,...

  25. Compliance ambassadors wanted!

    CEP Magazine - November 2020  | Author: Mónica Ramírez Chimal  | November 2020 

    “How are you going to ensure everyone in the company knows what compliance is? How can you be sure that everyone does the right thing? How can you make certain that you are informed of what is happening in the company?”...