How to engage your board in compliance

Jennifer Kennedy (jenniferkennedy@barberinstitute.org) is Vice President, Governance, Risk Management & Compliance at Barber National Institute in Erie, Pennsylvania, USA.

The 1996 In Re Caremark decision stated that boards of directors have a fiduciary duty to ensure the effectiveness of the organization’s compliance program, and this responsibility has steadily expanded since.[1] The Federal Sentencing Guidelines make it clear that boards must be knowledgeable and exercise “reasonable oversight” of the compliance program. While these factors should give board members the motivation to engage in oversight of the organization’s compliance activities, the reality is that this responsibility falls to the compliance officer.

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