Companies are paying more attention to strategic risk management.  The reasons for this are not just the aggressive enforcement environment but the technological age in which we live. Events can occur quickly as a result of technological innovations such as social media, mobile and big data, and the cyber world.  These risks can cause serious disruptions to company operations or viral negative publicity which can...

Tone-at-the-top says it all.  Without the support of the CEO, a Chief Compliance Officer is limited in what he or she can accomplish.  If there is no commitment from the CEO, a CCO can propose and possibly build great compliance systems, adopt state-of-the-art policies and procedures, and bring about a change in attitude within the compliance department.  However, the CCO’s compliance program will be limited...

We always read that corporate leaders regularly identify data security as one of the top-five risks they face in the business world. Many companies are appointing a Chief Privacy Officer to oversee the proper handling of data.  In some cases, Chief Compliance Officers are charged with responsibility for protecting a company’s data and making sure that the company does not violate any law or regulation...

Whenever a new competitor threatens an established industry, you can always count on entrenched competitors to use any strategy they can to frustrate the new competing technology.  Our economic history is replete with examples of this phenomena. The virtual currency industry, which is rapidly growing, is a threat to traditional financial companies.  As more e-commerce websites and Internet businesses embrace virtual currencies, there is likely...

It is almost a government rite of passage – when a new leader takes the reins, the chessboard has to be reorganized to reflect the new leader’s “new priorities.”  When it comes to the SEC, and the new Chairwoman Mary Jo White, the “new priority” is the return to an oldie but goodie – accounting fraud. Let’s face it – the SEC does it best...

In a fitting tribute to the departing Deputy Assistant Attorney General Scott Hammond, the architect of the Antitrust Division’s criminal enforcement plan, the Department of Justice last week announced a record criminal settlement in its largest criminal investigation ever – the auto parts investigation. Nine Japanese companies and two executives agree to plead guilty and pay fines totaling more than $740 million for a price...

I would like to think of myself as an advocate for the Chief Compliance Officer.  It is easy to see why the CCO and the General Counsel should be separate individuals but close colleagues who depend on each other.  Separation and dependence is a hard act to put together in one relationship but it can be done. Just because a company has set up the...

The privilege to serve on a corporate board is no longer the cushy experience of our forefathers.  The increase in enforcement actions has led to a dramatic change in the role – and the risks – facing corporate boards. Companies dread hearing lawyers recommend the need for an internal investigation.  Alarm bells and whistles go off and corporate board members have to take a deep...