We continue to hear about the impact of apparent or real conflicts of interest — whether in government, in business, or in other organizations. It is an issue of significant importance. Within an organization, a perceived or real conflict of interest can undermine the very integrity of the organization and a specific person’s ability to act in a manner consistent with the organization’s interests. Scandals...
Little problems can become big ones. A failure to respond to a risk – whether it is a conflict of interest violation or a weakness in internal controls – can become even more significant depending on the size and scope of the problem. A recent criminal prosecution of two Rockwell Automation executives underscored the nature of this phenomena. Last month, federal prosecutors arrested and charged...
Lawyers know about conflicts of interest. They face significant risks when handling clients and have to scrupulously follow principles surrounding conflict of interest. The two categories of conflicts of interest are defined as “appearance of a conflict,” and an “actual conflict.” Both can undermine the independence of an attorney who must zealously advocate on behalf of each individual client. Beyond lawyers, in the corporate business...
In the risk mitigation business, we often focus on legal risks, such as anti-corruption, sanctions, export controls, antitrust and AML. As compliance programs mature, and the CCOs focus on proactive strategies, one key issue is conflict of interest. My experience with conflict of interest issues has confirmed that such conflicts often mask more serious compliance issues relating to fraud and even legal violations. As such,...
As we continue to operate under the Yates Memorandum, a number of interesting and difficult issues are sure to develop surrounding internal investigations and individual culpability. Corporate internal investigations have to focus on all potentially culpable individuals. Many commentators have incorrectly suggested that the Yates Memorandum will not have an impact on corporate internal investigations and the Justice Department’s prosecution of individuals. These commentators are...
