Articles | Compliance Week – Page 290
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The Compliance Officer’s Role in Driving CSR Efforts
As corporate social responsibility becomes a business norm across Europe, two questions for compliance officers are what role they should play, and how they can leverage a vibrant CSR effort to enhance corporate culture and values. In part two of our look at CSR programs, this week we explore how ...
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Anti-Corruption Compliance Improves in Defense Sector
Image: A new Transparency International report examining anti-corruption measures in the defense sector holds both good and bad news: Many defense companies have improved their ethics and anti-corruption compliance programs; plenty more still have lots to do. “It is clear that many companies in the industry are paying closer attention ...
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Throwing Books & Records at ’Em
Image: Compliance officers responsible for accurate books and records and effective internal control over financial reporting may be entering a brave new world of regulatory enforcement. The SEC is stepping up its use of administrative proceedings to impose strict liability on even relatively minor infractions of securities law. “The SEC ...
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Far East: The Epicenter of FCPA Enforcement?
Image: Everyone says bribery risk is highest along the Pacific Rim, but how acute is the problem really? Pretty bad, according to a Compliance Week review of recent FCPA enforcement actions—and the risks will only increase as more U.S. companies enter Asia and more Asian companies tap U.S. capital markets. ...
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Q&A: How E*Trade Recovered From the Financial Crisis
Image: As part of our occasional series of conversations with compliance and risk executives, we caught up with Michael Pizzi, chief risk officer at E*Trade Financial. Prior to the financial crisis, E*Trade had made sizable investments in mortgage-related assets—toxic assets whose value ultimately plummeted, resulting in substantial writedowns for the ...
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Latest Pay Disclosure: Bring on the Metrics, Break Out the Peers
Image: Compensation committees and external reporting executives should brace for impact from the SEC’s newest addition to executive compensation disclosure: pay-for-performance rules. The detailed new disclosures (tagged in XBRL, no less) will be extensive, the consequences for executive pay unknown. “How useful is this information really going to be? To ...
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Parsing the Data on Financial Restatements
Image: The data behind financial restatements tell a fairly positive tale for 2014, with improvements in financial reporting across many variables (unless you’re an accelerated filer, where restatements edged up from the prior year). Inside we have a close look at which companies restated for what reasons, and whether improvement ...
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EU Companies Face CSR Reporting Mandate in 2016
Image: This week Compliance Week starts a series on corporate sustainability, asking the most basic question of all: Will sustainability reporting ever be required? Yes, at least in the European Union. Inside we look at the state of CSR in Europe, and what role compliance officers are likely to play. ...
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The Multimillion Dollar Question: When to Self-Report?
Image: The mantra from regulators when uncovering potential violations of the Foreign Corrupt Practices Act is clear: self-report early and often. Still, companies might want to take a more nuanced approach to that decision, and some legal voices maintain that occasionally shareholders are best served by staying silent. “Right now, ...
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Eliminating Cyber-Threats From the IT Supply Chain
Image: The longer a global supply chain grows, the less assurance corporations have in the integrity and security of their products and operations. Now NIST is trying to pierce that fog with new guidance, and compliance officers in the private sector might want to take notice. “Cyber-supply chain risk management ...
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Running in Place or Winning the New Race?
Image: Our GRC Illustrated series returns this week, looking at how compliance programs can keep pace with new ways of communicating within business and with the new employees who use them. That will mean addressing multiple audiences through multiple channels, and it will pose new challenges for policy management, training, ...
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Audit Litigation Risk Down, but Not Out
The respite from litigation that audit firms have enjoyed the past few years may be ending. A recent study found class-action lawsuits alleging accounting improprieties rose in 2014 after two of the lightest years in the past decade. While only a tiny fraction of those class-action filings are directed at ...
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Whistleblower Laws Abroad Remain Weak and Untested
Image: What whistleblower protections exist overseas that are comparable to those under the Sarbanes-Oxley and Dodd-Frank Acts? Compliance Week did a spot-check of major countries, and the results of our round-the-world tour are inside. “There’s no country in the world whose whistleblower protection laws come close to what we’ve developed ...
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Volcker Compliance Deadline Creeps Up
Image: For all the political controversy still surrounding the Volcker Rule, its biggest compliance obligation—implementing new controls and training to root out forbidden trading—has a looming deadline in July. “You’ve got to build an infrastructure,” says David Freeman of the law firm Arnold & Porter. “That’s a bigger effort than ...
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Sentencing Commission Shifts Focus on Fraud Punishments
The U.S. Sentencing Commission has adopted new sentencing guidelines for financial fraud, heaping more punishment on masterminds but reducing penalties for others who might be lower-level minions in such frauds. The change has provoked mixed emotions in the legal community. Some welcome the new flexibility extended to judges as they ...
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Conflict Minerals: From Compliance to Risk Management
Image: As a June 1 deadline nears for companies’ second year of conflict minerals compliance, some might consider life beyond the next Form SD filing to a broader risk management program for suppliers. It can be done, particularly with the OECD’s framework for conflict minerals due diligence. “The entire rule ...
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Buying Time With Revenue Standard Delay
Image: FASB might delay implementation of the new revenue recognition standard; corporate financial reporting executives should not. Despite uncertainty on fine points of the standard and business software yet to digest FASB’s seachange in reporting revenue, businesses can do plenty now. “The deferral is telling companies don’t delay in assessing ...
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Cleaning Up FCPA Cases That Spill Into Litigation
Image: Companies under investigation for possible violations of the FCPA have more than enforcement action to worry about; they must be prepared to fend off shareholder lawsuits as well. That requires some careful strategy about how to investigate FCPA allegations and document them. “I can’t tell you how often I ...
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Still Working on Culture After All These Years
Five years ago, the Dodd-Frank Act imposed new rules governing everything from derivatives trades and mortgage lending to disclosures about executive compensation and conflict mineral usage. Have all those requirements really helped companies master a stronger ethical culture? Inside, we look at what steps some companies have taken to promote ...
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Data Governance 101: Getting Started
Amassing terabytes of data is easy; for most businesses, managing those valuable—and sometimes very risky—assets is the hard part. A successful data governance initiative, experts say, isn’t a project you can hand off to the IT department or solve with a software purchase. Compliance, audit, and risk executives all need ...