Category: Risk Assessment

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.

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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.

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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.

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DOJ Refines Monitorship Policies

Ultimately, a monitor should benefit the company, its employees, shareholders, and the public by effectively furthering the goal of preventing and detecting future misconduct.

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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

Perfect Place Syndrome and the 10-80-10 Rule to Ethics

At some point it appears there was a human behavior theory that was possibly applied to fraud risk management and the 10-80-10 Rule to Ethics was born.

This theory is based on the assumption that 10 percent of the people are ethical all of the time, 80 percent could behave unethically depending on the situation or the pressure(s) being applied, and 10 percent have no or a severely broken moral compass and will pounce on opportunities to commit fraud.

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Putting the Freud in Fraud – Part Two

While we can’t get into the mind of the white collar criminal, we can take a closer look at high-profile individuals who have perpetrated massive fraud at corporations and instances of fraud identified in practice, as well as some research, to help is identify a pattern of similar behavioral elements common to white-collar crooks and cultural elements common to their environments.

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So Your Investigation Was Shut Down

Boards and Audit Committee members this is a public service announcement.

You should be really digging in and asking why an investigation was shut down.

That is all!

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.

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