Tagged: Corporate Governance

The Current State of Compliance and Internal Audit Partnership

Compliance officers and internal auditors are natural partners and allies in the compliance governance landscape.  As the compliance profession and influence grew, compliance officers often leaned on internal auditors for help in assessing risks, uncovering financial misconduct, and assessing compliance functions and controls.  Recently, however, I have noticed some changes in their relationship, suggesting that they both are maturing and gaining independence from each other. ...

The Urgency of Now: Corporate Ethics and the #MeToo Movement

The corporate scandal landscape is littered with important examples of governance failures surrounding corporate ethics and mishandling of harassment and sexual assault controversies.  Major corporate governance failures surrounding the handling of these issues have occurred at Google, CBS (Les Moonves), U.S. Gymnastics team, and U.S Congress, just to name a few of the many.  If there was ever a compelling argument for ethics and compliance...

The New Test for CCOs

These are inspiring times for the compliance profession.  Looking back on the last ten years, it is amazing to observe the growth and influence of the compliance profession.  Many of the original advocates for the compliance profession must be impressed.  Corporate leaders are now embracing a new mantra – ethics and compliance. Business ethics is a new focus and language all to itself. At the...

Five Questions for Corporate Boards on Oversight of Compliance

Let’s face it – corporate boards are not adept at overseeing a company’s compliance program.  In the absence of a board member who has prior compliance expertise, corporate boards either ignore or struggle to fulfill their compliance oversight responsibilities. Corporate governance performance is suffering from this serious gap between compliance responsibilities and compliance capabilities.  Corporate boards are under increasing pressure to improve their performance, including...

Renewing Corporate Vows to the Chief Compliance Officer

Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success — Pablo Picasso The chief compliance officer is at an important professional juncture – 2018 is an important year for the profession.  In this era of growth, and after corporate tax relief, companies...

Michael Volkov’s New E-Book: Pointing the Finger — How Corporate Boards Are Dodging Accountability and What CCOs Can Do About It

I am pleased to announce the release of my new e-book:  Pointing the Finger — How Corporate Boards are Dodging Accountability and What CCOs Can Do About It. My new e-book can be downloaded HERE. Thanks to Corporate Compliance Insights for publishing the book and its continuing support. The compliance revolution has had a dramatic impact on important actors in the compliance arena – the...

After Circling the Wagons: Wells Fargo’s CEO Finally Falls

The Wells Fargo scandal represents a textbook case of compliance and culture failures. Recently, the scandal and Wells Fargo’s defensive crisis management strategy resulted in CEO Stumpf’s resignation. Stumpf’s demise was inevitable. He will go down in history as the only CEO of a major bank forced to resign in the aftermath of a public scandal. It is important to review what happened at Wells...

Defining “Effective” Ethics and Compliance Programs

The compliance profession faces many challenges. Some are more important than others. When it comes to evaluating performance, or measuring compliance programs, the profession has a steep uphill climb. Unfortunately, measuring compliance programs and defining what an “effective” program is an issue that requires extensive research and analysis. Justice Potter Stewart’s famous words defining “obscenity” – “I know it when I see it,” just will...

A Rush to Compliance: Patience is a Virtue

Compliance officers are, by definition, goal driven. They are high achievers and expect to succeed. So what. You may say – we all know that. Compliance officers are not the most patient group of people. They want to see change, improvement and action. Patience is not in their blood, nor is it their middle name(s). Unless a CCO is directed by the board or the...

AML Risks and Foreign Correspondent Banking

With the Panama Papers scandal and government promises of continued aggressive AML enforcement, financial institutions face a variety of risks that require increased vigilance and mitigation strategies. One of the most challenging risks facing all financial institutions is foreign correspondent banking. In essence, a foreign correspondent banking relationship is built on the effectiveness of a foreign bank’s AML compliance program and ongoing monitoring capabilities. Such...