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The experience of fraud can be so jarring that it frequently causes individuals and businesses to completely change their financial practices. In three out of ten cases of fraud, according to one study, a customer will leave their financial institution. When customers experience fraud, no matter where or how it occurs, their future behaviors are...

Coalitions of stakeholders in the business world agree that combating climate change stands as a crucial long-term measure. But those actions are next-to-moot if investors can't assess and benchmark their effects with standard sustainability reporting. In a context in which society is demanding initiatives to combat climate change, the debate on corporate sustainability reporting is...

The Fifth Circuit Court has permanently blocked the OSHA vaccinate-or-test ETS. But judicial review continues. In the meantime, businesses can do little more than educate themselves on the matter. On November 4, 2021, the Occupational Safety and Health Administration (OSHA) issued an Emergency Temporary Standard (ETS) that requires businesses that employ 100 or more employees...

The struggles of the great resignation resulting from the COVID-19 pandemic are not without a silver lining. Resourceful managers and leaders can build a strong core team among the employees who weathered the storm, a bond that could prove invaluable in the years to come. Employee turnover is higher than it has been in recent...

As evidenced by the Nigerian port systems, corruption often arises from inefficient systems. Inter-agency coordination and process modernization can curb corruption to a significant extent.

The deadline for E.U. member states to transpose the Whistleblower Protection Directive into national laws is Dec. 17, 2021. Once the local whistleblowing laws have been passed, they will become applicable to all organizations with more than 250 employees of that specific E.U. member state. Denmark and Sweden have already issued new whistleblowing acts, more...

A diverse, equitable and inclusive culture contributes to organizations' success by positioning directors and senior executives to add value in evolving markets. Do your board and C-suite measure up? Diversity in the boardroom and the C-suite encompasses such attributes as education, experience, gender, racial and ethnic background, geographic origin, age, digital savvy and specific areas...

In recent years, corporate directors have faced an increased risk of shareholder derivative litigation, often based on claims of mismanagement or oversight failures. Insurance premiums have increased in kind, but a recent Delaware Supreme Court decision reverses this trend. Directors’ exposure to potential liability has increased as courts — once more deferential to boards —...

In the event of Chapter 11 Bankruptcy, creditors often look to recover funds by individually targeting directors or officers (via D&O claims). Those who have a history of bad judgment, lack of dependence or failure to see looming issues could find themselves on the hook.

Implementing an ESG program at your business calls for far-sighted and informed decision-making. But that impulse often lies at odds with short-term fixations on quarterly performance.  This and myriad other quagmires lay in store for those who are tasked with ESG compliance.  ESG — the initials that are transforming corporate missions, purposes and structures, fueled...

The Securities and Exchange Commission (SEC) has already sent businesses more climate-related communications this year than it did over the course of the last decade. Kirkland Ellis attorneys say that's just a preview for what is yet to come.

Per a recent BDO survey, the concerns of many directors remain all-too familiar to compliance departments. Results indicate where leaders plan to divert their resources in the near- and medium-term. A company’s board plays a pivotal role in both compliance and business continuity, which is especially important after the past 18-plus months of disruption have...

When businesses do wrong in the current climate of regulatory enforcement, they often find themselves under scrutiny from federal, state and local agencies. In this eventuality, one can take some steps (and avoid others) to mitigate the impact. All companies dread the idea of a federal, state or local regulator investigating their business practices. These...

As environmental, social and governance (ESG) penetrate corporate boardrooms, one key factor within this mindset barely registered until the onset of the COVID-19 pandemic: public health. Governments on both sides of the Atlantic have done their best with regard to public health. It’s time for businesses to step up and get behind public health, and...

Credit Suisse agreed to pay $547 million to resolve a bribery and fraud scheme involving investments and financing arrangements for $850 million loan for the EMATUM tuna fishing operation. The fallout has dealt the Mozambique economy a crippling blow. Credit Suisse Group AG, a global financial institution, and its London-based European subsidiary, Credit Suisse Securities...

Updated enforcement priorities and guidance on facilitating ransomware payments remind companies of all types to establish holistic AML policies and programs — and revisit them as events warrant, write Saul Ewing Arnstein & Lehr partner Joe Valenti and associate Christie McGuinness. The Financial Crimes Enforcement Network (FinCEN) this summer announced America’s first government-wide priorities list...

New forced-labor requirements related to Xinjiang and a three-fold increase in enforcement by U.S. Customs have raised the risk of supply chain disruptions and penalties for U.S. importers. How should companies go about proving the negative: that their supply chains are forced-labor free?

It’s no secret that the volume of data created by organizations and people multiplies daily. That data is spread across more tools, platforms, devices and clouds than ever before, creating regulatory challenges and security risk. This article looks at simplifying data governance by taking a bird’s-eye view of the state of your information assets and...

The threat of new ransomware models was the top concern facing executives in the third quarter of 2021, according to Gartner's Emerging Risks Monitor Report. Concerns about ransomware topped pandemic-related concerns, including supply chain disruptions, according to the survey of 294 senior executives across industry and geography. “The negative impact of evolving ransomware attacks is...

Rapid adoption of collaboration tools during pandemic helped ensure employees and customers in financial services industry were connected, but research reveals that quick uptake of these platforms elevates compliance risk in regulated industries like finance. More than eight in 10 financial services executives say their companies are turning off key productivity and usability features of...

The global pandemic forced many companies to accelerate their digital transformation efforts. As we reflect on lessons of the past 18 months, what must executive management and the board do to continue digital innovation going forward? Most are well aware of the churn in the S&P 500 over time. And many are aware that expected...

The Justice Department's probe into the generic pharmaceutical industry has resulted in three new settlements. Each arose from deferred prosecution agreements over violations of the False Claims Act anti-kickback statute. The healthcare industry faces cascading risks — one risk flows to another with compounding financial results. Three generic drug companies just experienced this cascading liability....

Public companies have made strides in increasing the diversity of their boards of directors in the face of pressure from multiple stakeholders, but according to a new analysis of board diversity, there's still a long way to go. The Conference Board (TCB) and ESG data analytics firm ESGAUGE conducted a comprehensive review of board composition,...

Menendez, Rubio and Merkley ask Universal Electronics to provide details of agreement with Xinjiang government to transfer 400 workers to company's Chinese factories A bipartisan trio of senators is asking for answers from U.S..-based electronics firm Universal Electronics after a report by the Reuters news agency said the company could be implicated in forced-labor practices...

The Fed, OCC and FDIC took an unprecedented step this summer in proposing a joint third-party risk management and information security framework that could apply broadly across the financial industry. In 2013, the Office of the Comptroller of the Currency (OCC) provided guidance to national banks for assessing and managing risks associated with third-party relationships....

Multiple factors are pushing ransomware, including growing attack patterns that include double and triple extortion, criminal business models taking advantage of ransomware, cryptocurrencies and wave of supply chain attacks During the COVID-19 crisis, another outbreak took place in the cyber space: a digital pandemic driven by ransomware. In a new report, cyber insurer Allianz Global...

Many view Chinese and Western approaches to AI regulation as oil and water. While significant differences exist, there is more overlap than one might think. As the U.S. considers its own approach, we may see more agreement and less technological balkanization.

The New York City Public Library system recently gave compliance professionals a lot to think about. The typical compliance program follows this recipe: Identify expected behaviors Punish those who don't comply In the world of libraries, patrons are expected to return books on or before the due date. If they don't, they must pay a...

PwC’s 2021 Annual Corporate Directors Survey highlights stark differences in director views compared to prior years in the areas of ESG, diversity & inclusion (D&I) and linking executive compensation to non-financial goals. Directors are once again calling for new faces on boards — with nearly half (47 percent) saying that at least one fellow board...

The concept of speak up culture is well known in compliance circles. But what happens when the listen up culture is lacking? As a recent Senate hearing shows, engendering a culture of compliance requires a two-way street. As ethics and compliance professionals, we’re always looking for real-world scenarios to demonstrate to our stakeholders the consequences...