Ninety percent of survey respondents from NAVEX Global's 2014 Ethics & Compliance Training Benchmark Report, cited their top ethics and compliance training objective as “Create a culture of ethics and respect.” This was closely followed by “complying with laws and regulations” (89 percent) and “preventing future issues or misconduct” (82 percent). Once focused almost exclusively on establishing important legal defenses, the new top priority for compliance training is building an ethical culture. This trend is true even among ethics and compliance and legal job titles that have traditionally been more focused on program defensibility.
Stay up to date on NAVEX Global – the company, our news and our general thoughts on the industry.
Over the past couple of years, the European Commission has been working on updating its nine-year-old Third EU Anti-Money Laundering (AML) Directive to accommodate new international standards and to address previous shortcomings. Earlier this year, the EU Parliament approved new draft legislation, bringing the Fourth AML Directive one step closer to implementation. Though implementation is unlikely to take effect before 2015, employers doing business across the EU should start buttoning down their compliance programmes now—particularly around third-parties. Shining the Light on Third Party Due Diligence
July 25, 2014 • Mary Bennett
The recently released 13th Global Fraud Survey from EY notes that, despite an aggressive enforcement environment focused on fraud, bribery and corruption, “the percentage of companies that have anti-bribery/anti-corruption policies has increased by only 1% over the past two years, and a persistent minority has yet to take even the basic steps toward an effective compliance program.”
July 21, 2014 • Ingrid Fredeen, Mary Bennett
We recently hosted a webinar, “Priorities, Practices and Trends in Training” to discuss the findings from our NAVEX Global 2014 Ethics and Compliance Training Benchmark Report. Some of the key findings from the report, which we addressed in detail during the webinar, were:
July 16, 2014 • Daniel Kline
An international focus on defining, preventing, and understanding the concept of “conduct risk” has become problematic for financial services organisations in the UK and beyond—in part because the term is not yet clearly defined. According to the Financial Conduct Authority (FCA), the UK’s regulatory body for financial services organisations, conduct risk is “consumer detriment arising from the wrong products ending up in the wrong hands, and the detriment to society of people not being able to get access to the right products.”
July 14, 2014 • Shon Ramey
I’ve watched for several years now the supposed controversy regarding the requirement of separating the general counsel and chief compliance officer roles. The arguments against combining the roles have ranged from a single individual simply not having enough time to devote to both roles to there being an inherent conflict between the roles. I say “faux” and “supposed” when describing the conversations because these discussions usually miss the point they should be focused on: How do you create and manage an effective ethics and compliance program for your organization? Requirement or Best Practice?
July 10, 2014 • Shanti Atkins
The now infamous General Motors mea culpa, which followed the automotive giant’s recall of almost six million cars, has brought the importance of a “speak up culture” front and center.
July 9, 2014 • Amanda Gratchner
Earlier this year, the French data protection regulatory authority (“Commission Nationale de L'informatique” or “CNIL”) significantly broadened the scope of the matters it allows whistleblowers to report through a hotline under its Unique or Single Authorisation registration process. New Options & Scope Previously, the Single Authorisation process limited reportable matters to financial irregularities, prevention of anti-competitive practices or violations of the Japanese Financial Instrument and Exchange Act.
July 3, 2014 • Simmi Singh Corcoran
A recent study, Report to the Nations on Occupational Fraud and Abuse: 2014 Global Fraud Study from the Association of Certified Fraud Examiners (ACFE) analyzed nearly 1,500 cases of occupational fraud as reported the Certified Fraud Examiners who investigated them. The report says that “the typical organization loses five percent of revenues each year to fraud. If applied to the 2013 estimated Gross World product, this translates to a potential projected global fraud loss of nearly $3.7 trillion.”
July 2, 2014 • Shanti Atkins
A co-founder and now former employee at Tinder has sued the dating app startup and its leaders for sexual harassment and discrimination. It’s a messy (and familiar) story of an office romance between senior execs gone horribly wrong. The fallout has only just begun, complete with incriminating texts and emails that have gone viral and will live forever in the company’s cyber culture.