Innovation in Compliance with Tom Fox

Tom Fox welcomes Yusuf Moolla on this episode of the Innovation in Compliance Podcast. Yusuf is a Director at Risk Insights, co-cost of The Assurance Show Podcast, and co-author of The Data Confident Internal Auditor. He joins Tom to talk about how compliance professionals can utilize data analytics, data governance, and internal auditing.Best Approaches To DataThe easiest way to approach data, Yusuf suggests, is to think about it as another form of evidence. "Over the years we've collected lots of manual documents as evidence…Data is just another piece of evidence," he tells Tom. Data can be used by anybody, and it is very simple to do so. Currently, there has been an emergence of open source tools to process data which has made it easier and cheaper for individuals. These open-source tools have made it safer as well, as there are options to look into the source code for digital traps. Visualization is another approach to data that individuals can utilize. While relatively new, being able to visualize techniques both in terms of exploring and explaining data is becoming something that is gaining traction in the data analytics world. Internal Auditing ApproachesYusuf explains to Tom that there are four main data approaches to consider when doing internal audits: Data being used purely for reporting The data-driven approach where the data does the talking The process-focused approach The hypothesis-focused approach There are similarities between the process and hypothesis approaches. The process-focused approach has been the traditional way of doing audits. Over the years, however, it's become less about how the process is done to achieve the intended result; it's now about what the auditing result is. "So it's not about looking at whether a process actually works the way that it's been designed, it's about looking at whether the process is working in the way in which it's intended to be able to achieve its outcome," Yusuf adds. Data Governance in AuditingMaking sure that data doesn't fall into the wrong hands as an auditor is one of the main facets of data governance. It is a very basic and traditional approach, but over the years professionals have been implementing it in an overzealous way. This can hinder the ability to create value through data. Yusuf suggests a slight reverse approach where everyone has access to data unless there is a specific reason for them not to. "We want to keep a range of data elements secure, but others we want to open up," Yusuf tells Tom. A Look AheadTom asks Yusuf what the future of data analytics, data governance, and internal auditing will look like in the coming years. Yusuf explains that there will be a greater use of data science, and a greater use of data within internal audit without the need for data scientists and specialists. More practitioners will be getting into, and understanding IT, and more people will be using data for themselves. This will free the data scientists from the more mundane tasks, so they will have time to dedicate to the more advanced techniques. The same would apply for compliance as well. ResourcesYusuf Moolla | LinkedInRisk InsightsThe Assurance ShowThe Data Confident Internal Auditor

Tom Fox welcomes Alison Taylor on this episode of the Innovation in Compliance Podcast. Alison is the Executive Director of Ethical Systems, a collaboration between leading academics in behavioral science, systems thinking, and organizational psychology. She joins Tom to talk about ethics and how it relates to ESG, stakeholders, corporate culture, as well as what place Gen Z and Millennials have in this discussion surrounding ethics and compliance in the future.Ethics & ESGThe roots of ESG are ethical in themselves. Alison explains to Tom that the basis of ESG is that businesses ought to do good, and do no harm. "ESG really tries to deal with everything that's beyond compliance...that companies should not just not break the law, but they should do stuff about climate change and human rights and that kind of thing," she adds. ESG has a say about what businesses should and shouldn't be doing in society. The problem in recent times is that ESG is more so related to the profit side of business and not what stakeholders care about. When ethics and ESG are treated in relation to the business case, they are treated as metrics and not important corporate social responsibility.Ethics, Stakeholders and CultureTom asks Alison to explain whether a conversation about ethics can be had across a broader group of stakeholders. "The idea that a company could perfectly reflect the ethics and values of every one of its stakeholders is totally ridiculous," she begins. What leaders should think about instead is the impact they have on their stakeholders. "Rather than talking about what we should and shouldn't do, a conversation could be that companies should manage the negative impacts that they have on their stakeholders and try and enhance the positive ones," Alison remarks. Another important thing for leaders to think about is if their organizations have a culture where employees don't feel safe to bring up ethical issues. The best 'speak-up' program won't be worth anything if your users don't utilize it.A Place for Gen Z and MillennialsTom asks Alison to elaborate on where she sees the roles of Gen Z and Millennials in driving the discussion about ethics in the future. "Younger generations want a meaningful career, and they care much much more whether a business is ethical or unethical," Alison states. If companies want to attract young people, they have to perform ethically and be known for doing so. Younger generations are much more tech-savvy, so if a business is operating unethically, they are going to leak that information via Twitter, Instagram, and Facebook. This can be detrimental to a companies’ public reputation. Shutting down ethical discussions internally is not the way for businesses to go when hiring younger generations. "If you think [that if] you can shut down this conversation, you're gonna shut down internal conflict - what you're actually doing is just pushing this outside and making it way worse," Alison stresses. ResourcesAlison Taylor | LinkedIn | TwitterEthical Systems

Tom Fox welcomes Dr. Mark Woodhull on this episode of the Innovation in Compliance Podcast. Mark is the Director of Graduate Business Education at Schreiber University, and a Military Science Academic Program Manager. He joins Tom to talk about the MBA program at Schreiner, what gain it brings to students, and what impact it will have on the business world in years to come.Schreiner MBA: Why It's Important and Who It's ForSchreiner's MBA program was constructed based on feedback from regional businesses about undergraduates' lack of training in ethics. Ethics have an enormous impact on a company and determine whether they thrive or collapse. "So, we felt that we would surround our program with that particular theme," Mark tells Tom. He adds that the kind of MBA program Schreiner runs is to create all-round individuals so that they can be competent in various fields no matter what workplace they enter. "What we're trying to do is create people who are flexible, versatile and are able to work within organizations or companies on that flexible basis," Mark states. The Future of MBA Education and LeadershipTom asks Mark to share some insight about how he envisions the future of MBA programs as well as corporate leadership. Many universities have begun specializing their MBA programs, and Schreiner is looking at that possibility as well. The university is also creating opportunities for their Hispanic students by delivering the same MBA program in Spanish. They will be allowed to take the programs from the convenience of their homes. As for corporate America, Mark stresses that transformative leadership is the way to go. ResourcesDr. Mark Woodhull | LinkedIn Schreiner University | MBA Program

Tom Fox welcomes Joshua Nunziato on this episode of the Innovation in Compliance Podcast. Joshua is an author, and an Instructor in the Social Responsibility and Sustainability division of the Leeds School of Business. He joins Tom to talk about corporate leaders conducting ethical leadership, its role in ESG, and why ethical leadership is a must in the future business world.Creating Ethical LeadershipJoshua created his Ethical Leadership course for corporate leaders to equip them with the tools and insight they need to understand the changes happening around them. "We really want to help leaders who participate in our program to understand that acceleration is really the new constant," he tells Tom. Corporate leaders need to be able to respond proactively to changes and crises. The range of stakeholders has expanded, so the traditional approach to corporate director education is no longer going to work. Directors and corporate leaders need forward-looking tools to navigate their current environment. The Relevance of Ethical Leadership in 2022Tom asks Joshua to explain why a course on ethical leadership is needed in 2022. Joshua responds that emerging from the crisis mode of the pandemic comes with a range of challenges that board members have to face, including increasing interest rates, high inflation, and uncertainty. Board members need to be able to situate their companies against these challenges and risks, ask the right questions, and provide leadership that will drive their organizations forward. The Role of Corporate Leaders in ESGSustainable leadership in ESG means that the needs and wants of the broad ecosystem of company stakeholders are being met with what Joshua calls, 'compassionate pragmatism'. "Corporate leaders are able to weigh up and evaluate the comprehensive impact that their decisions are having on the environment on local communities, on their employees, on their suppliers, on their customers, and yes on their investors," Joshua further explains. Compassionate pragmatism is also about taking in the impact, whether positive or negative, that corporate decisions may have, as well as managing what leaders can measure, and what they cannot. Leaders have to figure out what they value, and also what values they can gather as a business community that will drive them towards enduring prosperity.America in Ethical LeadershipJoshua doesn't see America taking the lead on ESG, or other sustainability issues; however, he does see America leading relative to other economies that are trying to get their citizens into the global middle class. Innovation on various compliance and ethical issues is happening around the US, and this is because individuals are recognizing the need to respond. The impact of corporate decisions over the decades is being felt across the political spectrum. Scandals and breaches of ethics also have serious ramifications and consequences for businesses, and so it makes sense for leaders to step and lead with ethical conviction. Joshua's role as a philosopher is to expand the moral imagination of the leaders he works with, so they can ask the right questions and consider sustainable leadership possibilities they otherwise may not have thought of. ResourcesJoshua Nunziato | LinkedIn | Twitter 

Tom Fox welcomes back Vera Cherepanova on this episode of the Innovation in Compliance Podcast. Vera is an ethics advocate, consultant, author and speaker. She joins Tom to talk about behavioral risks, the steps behavioral scientists take to analyze risk, and strategies from financial institutions that other industries can use.Behavioral Risk in The Banking SectorBehavioral risk is more or less the same across every industry. What is specific to the financial industry however, and banking in particular, is that the individuals work with money. This creates higher risk as the outcomes can be more immediately seen and felt by the customers. The Regulator's Role"The regulator has a very limited role in mandating culture because no regulator can mandate what kind of a culture and organization needs to have," Vera begins. The compliance regulator can mandate what the culture is, but how that corporate culture is going to be in reality will not be up to them. Speaking specifically of the UK and the Netherlands, Vera expresses that the regulators in these regions have played a largely educational role in the business industries. She gives Tom a few examples of the events the regulators have done in these regions.Assessing Behavioural RiskTom asks Vera to talk about some of the practical steps behavioral scientists take when analyzing behavioral risk. Vera cautions that the first thing to understand when applying behavioral science is that interventions don't always work. The first thing that scientists do is assess risk using a method called ethnography. They want to understand what is really happening inside organizational teams. They focus on subcultures, and then compare that against what is written in policies and regulations. Holistic cultural assessments aren't done as behavioral scientists concentrate on specific teams. Surveys are also only used to categorize the data the scientists have collected, and to generalize some of their observations. Strategies To EmulateThe methods financial institutions use to conduct audits are accessible for any industry. Looking into behavioral risk on top of a risk management framework is one concept that can be emulated across industries, as well as using subculture audits. These skills will be modified for each industry but Vera remarks that the basic concepts will be the same across the board.ResourcesVera Cherepanova | LinkedIn Studio EticaEuropean Banks Are Behavioral Risk Pioneers. No, Really. 

Robert Ingalls is Tom Fox’s guest on this episode of the Innovation in Compliance Podcast. He is the Chief Product Strategist at Law Pods, a podcast for busy attorneys. In this episode, Robert and Tom talk about the power of podcasting as a medium for professionals in legal fields, why it works, and what’s in store for the future of podcasting in the legal industry.What Makes Podcasting WorkConsumer behavior is shifting, and so are people’s learning styles. Nowadays people want to be entertained whilst receiving information; podcasts are a great medium for this, especially for legal professionals who wish to pass on legal expertise to a wider audience. “When you make a podcast you're asking them to press play and keep living their life,” Robert tells Tom. Audio allows people to consume content in a way that is most convenient and accessible to them.Making The LeapLawyers have had the ability to produce audio content for many years. Tom asks Robert why this was never utilized until recently. “Because they don't need the new thing,” Robert replies, cheekily. A lot of law firms catch up with the trends slowly, and they also hope that the new trends will fizzle out or go away so they don’t have to implement them. However, the legal industry is shifting and lawyers and other legal professionals are making the leap into audio content, and picking up on social media a lot faster than they used to. They are noticing that other law firms are doing so as well, and that their clients are reacting to it. Law firms are now understanding that consumer culture is shifting and taking necessary measures to stay relevant.The Power of StorytellingThe easiest way to attract someone to your content is via interesting and authentic stories that are also a little informal. “Be a little more informal… relax yourself and tell [your listeners] what you would want to tell them in that kind of [cocktail party] environment and pepper in some stories,” Robert advises Tom and the listening audience. The podcast is a unique area to use your voice to make a connection with someone else. When storytelling attracts your audience, it encourages them to come back, which in turn motivates them to share your content. What’s NextIn the near future, there will be a period of concentrated growth. People will be able to ask legal questions via their digital assistants and get specific answers from lawyers, that are segmented audio clips from podcasts. Podcasting will no longer be considered something that is a fad to the legal industry but a useful tool.ResourcesRobert Ingalls | LinkedIn | TwitterLaw Pods

Robert Cruz is the Vice President of Information Governance at Smarsh and is Tom Fox’s guest on this episode of the Innovation in Compliance Podcast. Tom and Robert talk about information and data governance, communications data strategies, and how Smarsh helps its customers mitigate risks through its platforms.  New Communication and RiskIn the hybrid work environment employees use new communication sources such as Whatsapp, Discord, and Slack to converse daily. This poses a risk that compliance professionals are now challenged to govern since each of these technologies is different. Firms have to update their systems for this purpose and this is where Smarsh comes in. "Our communications intelligence strategy and platform helps customers bring [communication data] into a central point of control, so they can not only identify the risk but also that they can leverage this information as an asset of their business," Robert tells Tom. These new communication sources are simply ways for companies to engage, and if leaders can engage on their clients' terms, it can allow them to expand their markets. A Level of ComplexityWorkers have started to return to the office. Tom asks Robert to share how this has impacted the hybrid work environment, and if it has added any complexity for the compliance individual. The biggest challenge for compliance is that controls need to work consistently regardless of where an individual is. "You need to be securing an individual, not securing the particular location that individual is located in," Robert says. Compliance professionals need to make sure that they don't have blind spots, and that their controls work regardless of technology. This has also created more areas for which compliance professionals have to be accountable. What's NextCommunications data strategies in the coming years are not going to be heterogeneous. Robert stresses that when data is heterogeneous, it makes it difficult for people to understand. What is going to happen in the future is an acceleration in public cloud adoption and the adoption of artificial intelligence solutions. "The use of the machine to help individuals get through the volume and variety of information... are definitely on trend lines and will just become even more prominent and common across not just large enterprises but into medium size and even smaller firms in the near future," Robert remarks to Tom.ResourcesRobert Cruz | LinkedIn Smarsh

Welcome to this special podcast series, Integrity Matters sponsored by K2 Integrity. For this series, I visit with Koby Bambilia, Managing Director, and Olivia Allison, Senior Managing Director. Over the series, we look some issues and trends going forward into 2022. In this Part 2, I am joined by Koby Bambilia who looks at trends regarding AML going into 2022. Some of the highlights include: Impact has there been to-date from the  passage of the AML Act of 2020?  What has been on the mind of clients and others in the market? Has COVID and the global crises created shifted just how bad actors take advantage of the financial system?   How are you advising your clients to mitigate these risks and get ahead of the rule making as we head into 2022? ResourcesKoby Bambilia ProfileK2 Integrity

Don MacPherson is a futurist, a history buff, and has a degree in mass communications. He is Tom Fox’s guest on this episode of the Innovation in Compliance Podcast. Tom and Don talk about talent acquisition and retention, climate change, and the future of leadership.  Nurturing The Right TalentIn the 20 years that the HR profession has been in existence, the biggest lesson that Don has learned is that ensuring you have the right talent is top priority. The companies that have the right talent are the most successful. Differentiate your organization by how you relate to your employees: provide them with better tools and resources in order to maximize their talent. Climate Change: A Great Economic OpportunityTom asks Don to talk about the main topics holding his interest at the moment. Don says that climate change is one such topic. "I think about [climate change] from two ways: why did we get here, what benefits have we gotten out of it, and what opportunities does it present," he tells Tom. Even though climate change is the greatest threat to humanity at the moment, Don also sees it as “the greatest economic opportunity humans have ever seen.” Without climate change, and without global warming, humans would not have been able to build buildings, create infrastructure, travel, or create advances in both science and technology. The Future of LeadershipWhile AI is going to be a big part of the future of work, it will be replacing tasks not jobs, contrary to what many people believe. What becomes important then, is leaders’ ability to connect with their employees and other stakeholders in the new hybrid workforce, and create cultures that get the best out of their people. ResourcesDon MacPherson | LinkedIn | Twitter12 Geniuses

Welcome to this special podcast series, Integrity Matters sponsored by K2 Integrity. For this series, I visit with Koby Bambilia, Managing Director, and Olivia Allison, Senior Managing Director. Over the series, we look some issues and trends going forward into 2022. In Part 1, I am joined by Olivia Allison who looks at fraud trends going into 2022. Highlights include: WFH and RTO will continue to present evolving challenges for fraud prevention. Controls must be assessed and enhanced based upon changed working environments. Impact of the Great Resignation and workforce mobility. Multi-vector crisis and fraud prevention. Use of fraud dashboards. For more information, check out K2 Integrity.