Category: Regulatory

Board Member Composition: Participants, Passengers, and Prisoners?

As the organization’s ultimate decision-making body, the board of directors plays two critical roles: overseeing management on behalf of shareholders and other constituencies; and advising management, albeit with limited involvement in everyday company operations – nose in, hands off! The board should not attempt to run the operations of the organization; it should oversee how management runs the company.

I am amazed at how many members literally are not engaged, which reminded that one of the traits of an effective leader, or Pilot, is being a good team builder. But how can you build a good team if you don’t understand the players?  I’m not speaking about understanding their skills, I am speaking about understanding their level of engagement.  That amorphous concept most ignore.

» Read More

Corporate Governance – Commonsense Principles 2.0

Corporate governance is the collection of systems and processes that an organization has in place to prevent or dissuade potentially self-interested persons from engaging in activities detrimental to the welfare of shareholders and stakeholders and helps to promote better overall decision making.

» Read More

Compliance Thought Leaders You Should Be Following

Compiling a list of thought leaders in ethics and compliance is fun, but so challenging. There are simply too many thoughtful people in this field — which is itself enormous and wide-ranging — to call out everyone worth following. So below is a small slice of the thinkers in corporate ethics and compliance that I try to follow.

» Read More

Third Party Red Flags

Knowing who you conduct business within your supply chain is a very good if not leading business practice. Many organizations are being held responsible for the actions of their business

Enterprise Risk Management – A Practical Plan

Many companies have an idea, albeit vague, about ERM or enterprise risk management. But few have made real progress in planning or actual implementation. What is the holdup? A practical five-step approach can help companies get their arms around ERM … and begin to realize the benefits of integrated risk management, including escalating the right risks to the right people in a timely manner, and as a result, drive meaningful conversations with leaders to inform decision-making.

» Read More

Compliance 101 – Internal Controls Defined

Compliance officers talk about controls constantly. Effective controls are the lifeblood of what makes a compliance program work. Most of us can rattle off examples of controls, or recognize a control when we see one.
So my fellow speaker asked the audience: What is a control?

Nobody dared answer. We all, me included, were suddenly uncertain that we could define a control correctly.

The speaker who posed this question is Jonathan T. Marks, partner at Baker Tilly and a prolific thinker on all things forensics, audit, and internal control. Lately Marks has been asking audit and compliance audiences to define a control — and to his dismay, most people can’t.

Read Marks’ definition of internal control.

» Read More

It’s a Hit! Third Party Due Diligence

Why do due diligence? The “knowing” standard of the US Foreign Corrupt Practices Act (FCPA) makes a company equally liable whether an improper payment is made to a “Foreign Official”¹ directly or through a third-party, such as an agent, distributor, reseller, or sub-contractor. To minimize their exposure to potential sanction under anti-bribery and corruption regulations such as the FCPA, companies need to apply appropriate due diligence, taking a proportionate and risk-based approach.

Potential due diligence efforts include direct requests for details on the background, expertise, and business experience, of relevant individuals. It is also important to know whether you are dealing with a Politically Exposed Person (PEP) or a State Owned Enterprise (SOE).

» Read More

Why GDPR Matters

Reposted from CFO.com

The GDPR could affect almost every U.S. consumer goods and services company, and plenty of other organizations, that do business in the

Chief Compliance Officer v. General Counsel – Should They Be Separate?

Lack of separation of the CHIEF COMPLIANCE OFFICER and the GENERAL COUNSEL has been cited as a cause of numerous corporate failures. In fact, separation is now the norm in Health Care organizations. In spite of numerous recommendations to separate the two functions, there is general agreement that the roles are closely related and frequent collaboration is required.

The issues relating to separation of the CHIEF COMPLIANCE OFFICER and the GENERAL COUNSEL are most often discussed in terms of the differences in their roles (below).

» Read More
Author: Jonathan T. Marks, CPA, CFF, CFE


Partner, Firm Practice Leader - Global Fraud & Forensic Investigations, Compliance, & Integrity Services

Communication and work product may be privileged and confidential.

Attribution

The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at jtmarkscpa@gmail.com

Jonathan T. Marks, his firm, their affiliates, and all related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication.

Archives
Categories
©2020 All rights reserved.