Menu Close
Section 3

Demonstrating Value

MoreHide

Make the most of the boardroom

Learn how to prove and communicate the value of your program while becoming a strategic partner to the C-suite and your Board. 

MoreHide

The value of your compliance program is demonstrated with a mixture of art and science. Hard data and evidence-based information is your scientific proof, while more abstract observations of attitudes and behaviors make up the art of your compliance program. Together the art and science of your work tells its story of effectiveness. 

This section will give your the guidance to best tell your compliance program’s story of effectiveness through best practices in program assessment and benchmarking. It will give you the tools you need to package the raw data of your work into a compelling presentation to your CEO, board and senior management. And it will provide expert advice to help guide you through nurturing key relationships across your organization to showcase the value of your program even when it’s not in the spotlight. 

How to Impact Board Decisions Before Entering the Boardroom

“Packed” is not a term unfamiliar with the descriptions of board meetings. So before walking into your next board presentation, review these recommendations so that you can be timely, direct and prepared for an effective and impressive presentation.

NAVEX Global 02/15/2017

“Packed” is not a term unfamiliar with the descriptions of board meetings. So before walking into your next board presentation, review these recommendations so that you can be timely, direct and prepared for an effective and impressive presentation.

With “packed” being a customary term used to describe board meetings, it is critical that compliance professionals fully prepare and educate their board of directors before stepping up to the podium or flipping on the projector. Even top compliance professionals may only get 15 minutes to update their boards on their ethics and compliance programs. It’s not nearly enough time, but in many cases it has to be.

In order to make the most effective use of your board presentations and ensure board members are meeting their oversight duties as outlined in various regulatory guidance directives, maximize opportunities before your meeting to ensure the time in the meeting is as fruitful as possible.

The five key areas below represent knowledge and competencies that board members have the responsibility to own. Take full advantage of every opportunity you have with your directors to lay the groundwork for a productive board meeting.

 

5 Things Your Board Should Know Before Your Board Presentations

1. Specific Ethics and Compliance Risks and Oversight Requirements

Just like new employees, new directors should be introduced early on to your company, its organizational culture and values, and its ethics and compliance program. Your board meeting is not the first time your directors should be hearing about your program.

Aside from having a general understanding of your E&C program, members need to receive board compliance training on the intricacies of an effective program and oversight. According to the 2016 Ethics & Compliance Training Benchmark Report, only 58% of organizations surveyed train their boards on ethics and compliance issues. Many board members lack the experience needed to confidently oversee corporate compliance and risk management, so before asking for their oversight, train them on what oversight entails.

2. How Organizational Culture Impacts Compliance

Many directors do not realize that they have a role to play in defining an organization’s culture. Board members need to understand how compliance plays into corporate culture, and, more importantly, believe that corporate culture matters.

For example, the financial and compensation plans reviewed and approved by your board could increase pressure for employees to deliver on financial results regardless of policies or even the law. Convincing board members that the decisions they make in each meeting will not only impact the organization’s direction and goals but also the way employees go about reaching goals will help frame each choice they make.

3. What Notifications and Escalation Policies are in Place

Board members need to be assured they will be notified in a timely way in the event of a serious issue or allegation that could impact finances or organizational reputation. The most effective escalation policies assure notification of key directors within 48 hours of a serious issue.

Without clear requirements for notification, board members could be the last to know of allegations. Informing your board of your escalation policy before your board meeting will provide peace of mind that they will be aware of all immanent issues.

4. Personal Liability Risks for Boards and Executive