CEP Magazine

  1. Is your cyber insurance enough?

    CEP Magazine - August 2020  | Author: Erich Kron  | August 2020 

    Let’s talk for a moment about the exciting world of cyber insurance. Well, I suppose it’s not really that exciting until things go wrong, but it does need some discussion given the recent events around the ransomware industry...

  2. A new appetite for risk?

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

    As business starts to resume, there is a great aversion to putting people at unnecessary health risk...

  3. Balancing privacy, ethics, and safety during COVID-19

    CEP Magazine - August 2020  | Authors: Brian Lee, Dian Zhang  | August 2020 

    As companies bring employees back to the workplace, many have embraced the once-unpopular decision of collecting employee health data. In June, 59% of 104 legal leaders Gartner polled said they had begun or were considering collecting employees’ self-reported symptoms assessment; more than 50% are doing the same with temperature data.[1] The numbers are likely higher now...

  4. A pandemic is not your biggest risk

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

    Well-meaning—or at least profit-maximizing—consultants and lawyers have developed impressive, complex compliance risk assessment processes for your organization’s benefit. I have done quite a few myself. They provide reassurance for audit committees and direction for senior management’s risk mitigation efforts...

  5. Insider trading compliance programs

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

    Nearly 30 years ago, two young men hatched a brazen scheme: One would seek employment as a paralegal at a large corporate law firm, use that position to obtain inside information about the firm’s clients, and give the information to the other young man for trading on both of their respective behalves. The scheme worked well for a while—until they were caught and prosecuted...

  6. The ultimate mastery

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

    We all admire masters. Beethoven, Bach, Beyoncé. The truly gifted among humanity seem to effortlessly execute their genius. Mastery seems to be binary: You’re born with it or you aren’t. Michelangelo had a different take on this. He said, “If people knew how hard I had to work to gain my mastery, it would not seem so wonderful at all.” [1]...

  7. Learning from actual cases

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

    Back when I was in-house, we used the then-pending Federal Sentencing Guidelines as a springboard to improve our compliance efforts. We knew these were good, challenging standards, and we wanted to be sure we covered all the points. Our target date was November 1, 1991, when the guidelines took effect...

  8. Conduct a legal premortem to identify and mitigate risk before a crisis

    CEP Magazine - August 2020  | Author: Jonathan Aronie  | August 2020 

    More than 2,000 years ago, a Jewish sage living in Jerusalem compiled a book of wisdom today known as Ecclesiasticus.[1] The book was translated from Hebrew to Greek by the author’s son around 130 BC, and much later, the book was translated into English. Among the aphorisms that find their origin in this ancient text is one we’ve all heard before: haste makes waste. In the late 1700s, Napoleon Bonaparte is said to have remarked to his valet as he prepared for battle, “dress me slowly; I’m in a hurry.” We don’t know whether Napoleon had read Ecclesiasticus (Napoleon generally...

  9. Mitigate more risks with a change management program

    CEP Magazine - August 2020  | Author: Henry Powell  | August 2020 

    Nearly every compliance program is faced with finite resources, a wide-ranging scope, and ever-changing business and regulatory landscapes. In many companies, changes that occur—whether within the business, the compliance function, or the broader environment—are not centrally documented, uniformly analyzed, or tracked through disposition, which creates the very thing compliance is tasked with preventing: risk. Effectively managing system change is, therefore, paramount for any compliance management program. A comprehensive and effective change management program (CMP), in particular, is essential for timely identification, reporting, tracking, and remediation of compliance risk. It will also help to enhance your overall program’s risk mitigation capabilities...

  10. Prioritize sanctions risk in your compliance program

    CEP Magazine - August 2020  | Author: Ibrahim Yeku  | August 2020 

    It is often said that the fear of a thing is the start of caution. In relation to sanctions risk, it can be stated that the fear of sanctions is often the start of compliance. The ethical views on compliance program implementation, however, may not agree with the idea of building compliance programs around sanctions or the fear of sanctions, because it is believed that imbibing the overall culture of compliance in an organization is a better driver of compliance. Whether a compliance program is built around sanctions or not, it is important that the program serves as motivation for...

  11. Risk management starts with the employees

    CEP Magazine - August 2020  | Author: Paul H. Zietsman  | August 2020 

    Speak to any seasoned compliance professional, and they will tell you that everything pivots around risk. Risk is the starting point, the end point, and the single biggest thing that you must always keep your eye on if you want to be successful in compliance...

  12. The journey to a new code of conduct

    CEP Magazine - August 2020  | Author: William J. Holzhauer  | August 2020 

    Like many organizations, mine has an Employee Code of Ethical Business Conduct. In my tenure as US director of ethics and compliance, we have revised the code three times and currently are in the process of updating the code again, which we do every three years. Each time we update the code, it needs to evolve with the changing times and our changing corporate values, and with new social considerations. In this article, I wanted to give an overview of the journey to my organization’s new code...

  13. US Department of Justice releases updates to corporate compliance guidance

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

    In June, the Department of Justice made small changes to the Evaluation of Corporate Compliance Programs[1] guidance document that reflect the department’s growing understanding of how compliance programs should work and how to investigate whether a company has established an effective program...

  14. Uptick in fraud leads to increased whistleblower complaints in US

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

    The United States Securities and Exchange Commission (SEC) reported a 35% increase in complaints from mid-March to mid-May compared with last year. The increase is due to two distinct factors[1] : the widespread fraud due to COVID-19 and the willingness of now-unemployed workers to come forward with complaints...

  15. Office of Inspector General report finds problems with EPA consent order

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

    The United States Environmental Protection Agency (EPA) Office of Inspector General (OIG) released a report, EPA Toxic Substances Control Act Consent Orders Need Better Coordination,[1] based upon the requirements of the 2009 Toxic Substances Control Act (TSCA) premanufacture notice consent order with DuPont...

  16. Meet Blair Marks: The best defense is training

    CEP Magazine - July 2020  | Author:  Adam Turteltaub  | July 2020 

    Blair Marks, CCEP, Vice President of Ethics and Business Conduct at Lockheed Martin in Bethesda, Maryland, USA...

  17. Dodging US employment law violations during international mergers and acquisitions

    CEP Magazine - July 2020  | Authors: Thomas Stromberg, Javier Garcia  | July 2020 

    Every buyer of a US business needs to think about how it will operate the business after an acquisition and how to avoid existing and future liabilities resulting from operations. Some operational challenges are evident, while others are not as obvious. One challenge that our non-US clients spend time and resources overcoming is complying with applicable employment laws and regulations while maintaining a productive and effective workforce. US employment laws vary from state to state and are often very different from the laws of the countries in which non-US buyers operate. This challenge needs to be identified and managed when...

  18. Fight corruption and fraud with data and technology

    CEP Magazine - July 2020  | Author: Parth Chanda  | July 2020 

    Corruption and fraud cost companies dearly, upwards of 5% of annual revenue according to some estimates.[1] Beyond monetary costs, corruption and fraud damage a company’s brand, erode its organizational culture, and hurt the consumers and countries that a company strives to serve and support...

  19. Gaining a seat at the M&A table

    CEP Magazine - July 2020  | Author: Kasey T. Ingram  | July 2020 

    Mergers and acquisitions (M&A) tend to happen fast. Once a decision has been made to buy, time becomes essential. For the in-house ethics and compliance (E&C) team to be effective, it must be involved before the decision is made to buy. To effectively address E&C due diligence efforts during the M&A process, the E&C team needs to find and join the M&A team, get buy-in for M&A compliance due diligence, and then train the M&A team on that process before the first deal happens. This article will set forth advice to help you do just that...

  20. Beyond risk mitigation: Implementing effective compliance programs for today's workplace

    CEP Magazine - July 2020  | Author: Giovanni Gallo  | July 2020 

    Mention the word “compliance,” and most business execs would likely say it means risk mitigation. That’s certainly part of it, but there’s more to compliance than preventing negative incidents and cleaning up after them. Compliance professionals are responsible for ensuring everything goes right, day in and day out. If problems occur, they carry the weight of potentially staggering losses due to bad actors, data breaches, legal or regulatory infractions, and more. It’s a huge, daunting, and often thankless task...

  21. Another argument for analytics

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

    If you are like most compliance professionals, your travel has been restricted significantly by the COVID-19 pandemic. In the time between when I write this in late April and when you read it, you may still be under a travel restriction. Hopefully, you’re not also thinking, “There goes my monitoring and auditing plan for the year!”...

  22. Are boards missing the ethics boat?

    CEP Magazine - July 2020  | Author: Sally March  | July 2020 

    The coronavirus crisis has lent urgency to the public discussion of ethics and sustainability as some very large listed corporations snapped up government assistance intended for small businesses[1] and were pilloried in the press for their behavior.[2] Some complained that they had done nothing illegal; the rules were badly crafted.[3] The business media warned senior executives that how they behave now will affect the future of their businesses. Executives who took a pay cut during the crisis got a pat on the back for recognizing, if not exactly sharing, the pain of their furloughed employees. After the crisis, executive remuneration...

  23. Data protection and information security with remote work

    CEP Magazine - July 2020  | Author: Robert Bond  | July 2020 

    Several months into the COVID-19 lockdown, many of us are working from home in circumstances that were never anticipated. Many of us are operating without the right technical and organizational structures to manage the information we are processing. Data protection authorities around the world have reinforced the fact that while they may be reasonable about the challenges that organizations face in managing data protection and information security, the laws still apply...

  24. Crisis management: The aftermath

    CEP Magazine - July 2020  | Author: Walter E. Johnson  | July 2020 

    At some point, a crisis does come to an end. When and how it will end is speculation. Some individuals may be optimistic, while others are pessimistic about the outcome. Individual reactions are unpredictable and vary. Regardless of mindset, there are lessons to be learned in the midst of the crisis and others learned afterward...

  25. Keep the pendulum from swinging too far

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

    It’s been said that one bad apple spoils the bunch. In compliance, we typically use the “bad apple” defense to abdicate the company from responsibility. We describe the bad actor as the one who went rogue. But what happens to us in compliance when someone goes rogue? Occasionally we overreact, setting off a chain of unintended events and negative responses. What’s the risk of doing so, and how do we avoid it?...