Compliance: Tips for Ensuring a Values-Based Program
I moderated a panel at the TRACE London Forum this Fall on the topic of Developing a Values-Based Compliance Program and wanted to summarize in this post a few key takeaways from that discussion for those of you who might not have been able to join us.
Continuously evaluate your compliance resources to ensure they are fit for purpose. A seeming misnomer when considering how often we hear that compliance departments are under-resourced and over-tasked, but ensuring your program is fit for purpose can be a true hurdle to having a successful program. As those who work in compliance will know it’s not just about access to resources but the right resources and support. Consider, over time has your program become “overbuilt”? Do your policies need to be reviewed for legalese? Have you inherited tools or processes that no longer work well with the business and company guidelines?
Ensure your compliance program remains in a “living” state. To be effective an organization’s compliance program can never grow stale. At all times compliance needs to track with the growth and movement of the business. The U.S. Department of Justice reiterated this point in its recently updated Evaluation of Corporate Compliance Programs wherein it stated that, “[t]he starting point for a prosecutor’s evaluation of whether a company has a well-designed compliance program [will be] to understand the company’s business from a commercial perspective…” If the U.S. DOJ will evaluate your compliance program through the lens of your business, you should certainly evaluate internally through the same microscope.
Keep the business close to compliance. Encourage your colleagues working in the business to think about the HOW while compliance focuses on the WHAT. What does this mean? One thought in support of this approach would be to implement “compliance by exception,” pushing decisions back to the business through the delegation of authority. Using this approach, compliance would empower the business to consider the risks/benefits of various arrangements/proposals while compliance retains a right to audit. If your colleagues in the business have to sign their name on the dotted line maybe they’ll think twice about the terms and deal structure – accountability is key for effective compliance.
Each company will need to apply a tailored approach based on the risks faced by your business to craft a compliance program that best meets your organization’s needs. Still, the beating heart of any compliance program will be a leadership team and employee base that embodies a strong sense of ethics and values.
Next time you turn to evaluating your compliance program possibly consider its elements, how your program is evaluated for improvement and what accountability looks like for those who are tasked with ensuring compliance across the company.
I’ll leave you with a statement that was shared by a participant at the Forum I found to be particularly impactful – Compliance is not just the job of compliance but everyone – every employee at the company way!
Senior Director II, Compliance Training, TRACE