Innovation in Compliance with Tom Fox

In this five-part podcast series, sponsored by K2 Intelligence FIN, we consider defining and building effective compliance programs. I am joined in this series by Michelle Goodsir, a Managing Director at K2 Intelligence, and Gail Fuller, Financial Integrity Network (FIN) Vice President. Michelle has 25 years of financial crime compliance experience which includes fraud risk management, anti-bribery and corruption, corporate security and investigations, sanctions, and Anti-Money Laundering (AML) program experience working within the financial services industry and the US government. Gail focuses on developing, refining, and implementing FIN’s quantitative and qualitative risk rating tools. She leads engagements focused on helping FIN’s jurisdictional and private sector clients understand their exposure to financial crime risk and develop and implement strategies to mitigate their risks. Over this series we are considering key challenges in compliance, why compliance needs a seat at the table, how to do compliance on a budget; training and culture and what is on the horizon. In Part 4, I visit with Gail Fuller on how to facilitate ongoing compliance training, communications and re-emphasizing culture in an organization. Some of the highlights include. What are some of the key components to a successful training program? They include comprehensive, tailored; effective training which is built into the culture; it is continuous and employees are held accountable. Especially given all that is going on in the world, how can organizations ensure they are giving employees the right blend of in-person and online training? Regulators are neutral on method but a blend is really ideal as people learn in different ways. You should design your training program to take advantage of each form of training’s benefits. Finally be sure to make it engaging. Once training is complete, how can entities ensure their teams are able to report issues? A kley is to have two buckets- one which is inward facing (governance focused) and a second which is outward facing (interactions with regulators). ResourcesK2 Intelligence financial crimes risk & compliance page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance K2 Intelligence AML page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-money-laundering-complianceK2 Intelligence Anti-corruption page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-corruptionK2 Intelligence DOLFIN (relevant for the training section): https://www.finintegrity.com/dolfin.html

In this five-part podcast series, sponsored by K2 Intelligence FIN, we consider defining and building effective compliance programs. I am joined in this series by Michelle Goodsir, a Managing Director at K2 Intelligence, and Gail Fuller, Financial Integrity Network (FIN) Vice President. Michelle has 25 years of financial crime compliance experience which includes fraud risk management, anti-bribery and corruption, corporate security and investigations, sanctions, and Anti-Money Laundering (AML) program experience working within the financial services industry and the US government. Gail focuses on developing, refining, and implementing FIN’s quantitative and qualitative risk rating tools. She leads engagements focused on helping FIN’s jurisdictional and private sector clients understand their exposure to financial crime risk and develop and implement strategies to mitigate their risks. Over this series we are considering key challenges in compliance, why compliance needs a seat at the table, how to do compliance on a budget; training and culture and what is on the horizon. In Part 3, I visit with Michelle Goodsir on the challenges around budgeting for compliance. Some of the highlights include. ·      Budgets have long been stretched in compliance. How can organizations make the most of it between teams? By working across teams and skillsets; leveraging resources as a utility across functions. ·      Are there technology solutions that can help? Yes innovation can occur at institutions of all sizes; case management; screening tools; data analytics. ·      What if financial organizations do not have all of these capabilities internally? There are a variety of solutions you can utilize. They include working with a third party or other external firms; maintaining compliance on a budget is not insurmountable; investing now for cost efficiencies in the long term. ResourcesK2 Intelligence financial crimes risk & compliance page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance K2 Intelligence AML page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-money-laundering-complianceK2 Intelligence Anti-corruption page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-corruptionK2 Intelligence DOLFIN (relevant for the training section): https://www.finintegrity.com/dolfin.html

In this five-part podcast series, sponsored by K2 Intelligence FIN, we consider defining and building effective compliance programs. I am joined in this series by Michelle Goodsir, a Managing Director at K2 Intelligence, and Gail Fuller, Financial Integrity Network (FIN) Vice President. Michelle has 25 years of financial crime compliance experience which includes fraud risk management, anti-bribery and corruption, corporate security and investigations, sanctions, and Anti-Money Laundering (AML) program experience working within the financial services industry and the US government. Gail focuses on developing, refining, and implementing FIN’s quantitative and qualitative risk rating tools. She leads engagements focused on helping FIN’s jurisdictional and private sector clients understand their exposure to financial crime risk and develop and implement strategies to mitigate their risks. Over this series we will consider key challenges in compliance, why compliance needs a seat at the table, how to do compliance on a budget; training and culture and what is on the horizon. In Part 2, Michelle and I discuss why compliance needs to be an integral part of your business strategy going forward.  What has evolved recently in the landscape that has made the role of compliance more challenging? There has been a plethora of  guidance from different regulators to address emergency situations; managing costs; reviewing alerts in a timely manner.  You mention that Compliance is often seen as an overhead cost – why should entities think of it differently? There are a variety of costs around the following, enforcement action costs vs. cost of compliance; operationalizing compliance; building compliance in from the beginning vs. retrofitting a program to maintain compliance; outsourcing compliance.  How can organizations make sure compliance protocols are carried out every day? Through a variety of tactics including regular training, communication, action; culture of compliance; tone from the top; compliance at business meetings. ResourcesK2 Intelligence financial crimes risk & compliance page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance K2 Intelligence AML page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-money-laundering-complianceK2 Intelligence Anti-corruption page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-corruptionK2 Intelligence DOLFIN: https://www.finintegrity.com/dolfin.html

Tom Fox welcomes VP of Third-Party Risk at Prevalent, Brenda Ferraro, to this week's Innovation In Compliance show. They discuss Prevalent's 2020 Third-Party Risk Management study, its key findings, and implications for compliance professionals. A Holistic ApproachBrenda describes Prevalent's mission as "...delivering a unified third-party risk management platform that's going to enable businesses to better reveal and interpret and alleviate risk by simplification and speeding risk mitigation awareness …" Prevalent does this through "economic approaches with standardization, how to use networks, how to leverage completed content gathering and making sure that we're doing the big bang for the buck," Brenda says. She emphasizes the importance of a holistic and economic approach.Key Findings and RecommendationsTom and Brenda discuss why Prevalent commissioned The 2020 Third-Party Risk Management study and its key findings and recommendations. Brenda says that the objective of the study was to provide "a state of the union" on third party risk as well as actionable recommendations to the industry. She lists some of the key findings, including: a lack of process which lessens third party program effectiveness; third party risk management is a team sport; many companies lack confidence in their risk management programs and the results they're getting; That companies need a comprehensive risk management process is the study's predominant recommendation. Brenda critiques the compliance industry's affinity for questionnaires, which just expose vulnerabilities but do nothing to mitigate them. She remarks, "...if you don't have a way to track and monitor your performance indicators and your risk indicators, then what you're doing is, you're spending a lot of time with questionnaire fatigue, gathering content administratively, identifying risks, and then it stops there. So we've got to get to the point where we're looking at inherent risk and residual risks qualitatively and quantitatively so that we can end up doing what's best for the company moving forward." She argues that industries need to work together to identify and address vulnerabilities across sectors. Working together and sharing information will help everyone elevate their risk posture and reduce vulnerabilities.ResourcesPrevalent.net 2020 Third-Party Risk Management Study Report

In this five-part podcast series, sponsored by K2 Intelligence FIN, we consider defining and building effective compliance programs. I am joined in this series by Michelle Goodsir, a Managing Director at K2 Intelligence, and Gail Fuller, Financial Integrity Network (FIN) Vice President. Michelle has 25 years of financial crime compliance experience which includes fraud risk management, anti-bribery and corruption, corporate security and investigations, sanctions, and Anti-Money Laundering (AML) program experience working within the financial services industry and the US government. Gail focuses on developing, refining, and implementing FIN’s quantitative and qualitative risk rating tools. She leads engagements focused on helping FIN’s jurisdictional and private sector clients understand their exposure to financial crime risk and develop and implement strategies to mitigate their risks. Over this series we will consider key challenges in compliance, why compliance needs a seat at the table, how to do compliance on a budget; training and culture and what is on the horizon. In Part 1, I visit with Michelle Goodsir on the biggest challenges in compliance today. Some of the highlights include: What are the biggest compliance issues facing banks in the U.S.? They include coronavirus implications; impact of economic crisis; costs of compliance programs; maintained expectations from regulators.   What are some of the global challenges emerging? They include the regulatory focus on AML and sanctions; managing competing needs of compliance programs; incorporating and enhancing technology. How can these organizations keep pace? You should prepare now for challenges later; managed services; leveraging teams for cross-functional needs. ResourcesK2 Intelligence financial crimes risk & compliance page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance K2 Intelligence AML page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-money-laundering-complianceK2 Intelligence Anti-corruption page: https://www.k2intelligence.com/en/services/our-practices/financial-crimes-risk-and-compliance/anti-corruptionK2 Intelligence DOLFIN: https://www.finintegrity.com/dolfin.html

Leigh Vickery of Level 2 Legal, joins Tom Fox on this week’s show to discuss her company’s innovative managed services for the legal and compliance industry. She shares how they help clients get to the next level using a strategic combination of data and behavioral economics.Helping People Solve ProblemsLeigh shares her eclectic career background and how she came to the legal industry without any legal training. “I love helping people solve problems and… seeing the big picture and the patterns and processes across the business or industry,” she says. Level 2 Legal shares her vision: they see themselves as problem solvers whom their clients can count on. “How that manifests itself now is in e-discovery, compliance investigations, solving legal problems, or helping our clients understand how those legal issues affect their business outcomes.”Long Term Relationship-BuildersSuccess depends on staying nimble, Leigh tells Tom. “We're very much long term relationship-builders as a company,” she points out. As things change, Level 2 Legal is able to innovate to stay relevant. This is how they built the company from the first. Leigh comments that it took commitment, money, collaboration and a willingness to fail fast and change direction. Her job is to drive those initiatives and keep the company looking around the corner. A Different PerspectiveTom is intrigued by Leigh’s statement that she brings a new perspective to problem solving as well as innovation. He comments that a general counsel’s job is to protect the company from legal violations, whereas a compliance officer must remediate those violations. Ironically, however, most compliance officers were first general counsels. He says that his objective with this podcast is to bring innovative solutions to compliance officers to help them in their role. Leigh responds that every company should have someone who thinks differently to help the business innovate and improve.A Different Approach“Our services are completely designed to enable [our clients] to do what they need to do better, to help them predict where they’re going to have a problem…” Leigh says. She describes her company’s role as being there to help their clients look good. She explains that they’re able to fulfill their role through a strategic combination of data and behavioral economics. Their approach is collaborative, holistic and creative, she says; they are playing the long game. Tom asks her to define what it means to play the long game. She responds that it’s about thinking for the next generation. Because her company used this approach, they were able to survive and thrive through the present crisis. “The value of thinking long term is just table stakes now to be able to survive and thrive,” she comments.ResourcesLevel2Legal.com Call Leigh Vickery at (903)245-9183

Mari Ryan is the CEO of Advancing Wellness and author of The Thriving Hive: How People-Centric Workplaces Ignite Engagement and Fuel Results. She joins Tom Fox on this week's show to discuss the role of employee wellbeing in a thriving business culture. Assessing WellnessMany of the concepts and strategies concerning ethical values and corporate culture that Mari espouses, says Tom, are the same that a compliance officer would use. He asks Mari how her company helps clients assess their employees' wellbeing. She describes her two-part process: the first part is the qualitative and quantitative assessment, and the second part is creating a strategic plan to operationalize a culture of wellbeing in the workplace.Wellbeing Is Crucial to Business Success"Wellbeing can serve as a foundational element to the culture of the workplace and to creating business success… You need to have engaged employees to create a sustainable business," says Mari. Wellbeing is physical, emotional and financial; it involves feeling connected to your purpose and to other people. Mari adds, "If I'm feeling more thriving in my wellbeing, then I am more likely to be engaged, to be productive, to be connected to the purpose of the organization and making contributions that are going to make for happy customers, happy colleagues and help everybody achieve their business goals." Employee Wellbeing Is An Indicator of Organizational CultureMari posits in her book that employee wellbeing is an indicator of an organization's culture. She tells Tom that culture is the behaviors, norms, assumptions, and rituals within the organization. Purpose and values work together to form culture. If employees feel cared for and that their wellbeing is considered, the culture will be healthy. Wellbeing During and Post COVID-19Tom asks how Mari is counseling clients during the crisis. She responds that during a crisis we have to think about things from a different perspective. Stress is the major issue that everyone, no matter their circumstances, is dealing with during the pandemic. We will also have to deal with stress post COVID-19, she points out. She outlines the various types of support people will need after the pandemic.ResourcesMari Ryan on LinkedInAdvWellness.com

John Myers is the founder and CEO of Chorus Consulting. He has been an e-discovery and digital forensic professional for almost 30 years, assisting clients with data identification,   preservation and analysis. He chats with Tom Fox about his company’s innovative approach to data forensics and information governance.Innovation Begins HereTom is intrigued with Chorus Consulting’s tagline, “Innovation Begins Here.” He asks John to explain the significance of the tagline. John responds that it “represents our approach to our client projects and the way we approach our investigations... We're really continuously working to find better ways to exceed our clients’ expectations, thus we're innovating.” Data Security and Information GovernanceMost companies don’t truly know to what depth or breadth their data is secure, John posits. Chorus Consulting helps its clients understand the “what, why, and who” of their data, as well as their internal security measures. John says they help clients discover and correct potential security issues because it's critical to know whether these internal measures are actually protecting them as well as their data. Tom comments that this data security risk assessment can prove to regulators that a company has assessed their data and has put a risk management strategy in place based upon that assessment.John views information governance as an evolving discipline. “Information governance really provides the framework for clients to make good decisions about what information they're keeping, how long they're keeping it, and who and what should have access to it,” he says. He explains how his company helps his clients in this area. He also shares five practical steps to mitigate information risk.Proactive Approach to Data ForensicsTom asks, “You advocate utilizing forensic services in a proactive as opposed to a simply reactive basis. Can you talk us through how we would help a client do that?” John responds that they deploy real-time monitoring methodologies and technologies to ensure that corporate intellectual property or knowledge doesn’t leak out of the organization when an employee leaves. At the same time, they help their clients ensure that new employees do not bring data that they shouldn’t have into the organization.ResourcesJohn Myers on LinkedInChorusConsulting.net

Tom Fox chats with John Shegerian, an entrepreneur who is passionate about serving up second chances. They talk about what motivates him, and how his company ERI helps organizations protect their data while protecting the environment.Serving Second ChancesAfter the Rodney King riots in Los Angeles, John co-founded Homeboy Tortillas with Father Greg Boyle as an outreach program to employ gang-impacted youths. He recalls father Greg's tagline, “Nothing stops a bullet faster than a job.” Their way of doing business became a phenomenon in post-riot Los Angeles, and eventually, thousands of young people were employed in many different industries, which changed their lives positively. John says, “I only wanted to do businesses that made the world a better place, that made an impact... it always had to have a bottom-line way beyond just profit... All the companies that I'm involved with, I always looked for people that are part of what has been historically marginalized parts of society… Our core mission is recycling electronics at ERI, but recycling lives is what we really do in giving people a second chance.”Recycling ElectronicsTom comments that recycling is becoming more important in today's technologically-based world. He asks John to describe the business of ERI. John says that ERI recycles old or discarded electronics. He calls it the dark little secret of the technological revolution since nobody considered what would happen to our old electronics: they just made great technology that made our lives better. As a result, old electronics were dumped in landfills and it became - and still remains - the fastest growing solid waste stream in the world. Chemicals such as arsenic, beryllium and mercury leach into the ecosystem when electronics are dumped. This is very bad for people, for plants, for animals, and for the water supply, John says. “There's no reason to throw the stuff in the landfills because you could keep it above ground. You could recycle them responsibly and everything can go for beneficial reuse,” John argues. “You could be zero waste.”Protecting DataJohn’s message to governments and corporations is that recycling their old electronics is good for their business, good for their privacy, and good for the environment. He explains how he helps companies assess their e-waste recycling risks. In today’s context of the Coronavirus, it's more critical than ever to protect your data, John says. Bad actors seize opportunities like this crisis to take advantage. “If they got your old hardware they could pull your hard drives or other data containing materials, reverse engineer the information and have a heyday with regards to monetizing any data that’s contained in old hardware,” John points out.A Giveaway For ListenersJohn is giving a free copy of his book, 101 Tips From The Marketing Masters, to the first 10 listeners who reach out via email to book@themarketingmasters.com. He is also running a $0.99 promo on the Kindle edition on Amazon.ResourcesERIEmail for a free copy of John’s book: book@themarketingmasters.com Buy on Amazon

This week’s guest on the Innovation In Compliance podcast is Ben Wolf, founder and CEO of Wolf’s Edge Consulting. He chats with Tom Fox about how his company helps entrepreneurs systematize their business operations to achieve their goals.From Lawyer To ConsultantBen describes his career path from corporate attorney to founding his own company as a “twisting and turning journey.” He relates how he was introduced to the Entrepreneurial Operating System (EOS) framework, and the success the company enjoyed as a result of implementing it. After three years, he realized that he wanted to help other organizations grow in the same way. “So I went out on my own,” he says. Today, his consulting company helps other entrepreneurs implement EOS. The EOS ProcessTom asks Ben to describe the EOS process and how he helps entrepreneurs use EOS to grow their business. Ben responds that a business must be able to carry out its goals in order to be successful. “It’s just critical for any business to be able to have a good structure for how to set goals and then create discipline and accountability for getting those done,” he points out. The EOS is a framework for running all aspects of a business. In particular, it aims to help strengthen the six key areas of the business: vision, people, data, process, issue solving and traction. It helps companies achieve:  Vision -  getting everybody in the organization on the same page. Traction - getting people executing on the vision with discipline and accountability.  Healthy - having a professional, functional, cohesive and functional leadership team. Ben relates how companies can contract an EOS implementer like Wolf’s Edge, if they think it would be a good fit.Ben’s PodcastTom says he was honored to be a guest on Ben’s podcast, Win Win - An Entrepreneurial Community. Ben shares two reasons why he started the podcast and why he chose its name. ResourcesWolf’s Edge Consultingbwolf@wolfsedgeconsulting.comEOSWorldwide.com