Episodes

  • Step 10-Lesson on Speak Up Culture, Triage, and Internal Investigations

    Step 10-Lesson on Speak Up Culture, Triage, and Internal Investigations
    Aug 8 2024
    How can you survive a FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps all the way down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book, The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today we discuss lesson number 10 your investigation process. Tom and Nick discuss the importance of establishing a culture where employees feel empowered to speak up, the process of triaging and conducting internal investigations, and the significance of these practices in modern compliance programs. They reflect on the shift in workforce mentality towards valuing integrity and the practical implications for ethics and compliance teams in today's knowledge economy. They emphasize the necessity of effective internal reporting mechanisms and the strategic role of middle management in capturing risk intelligence. The conversation explores the challenges and opportunities in optimizing compliance processes to mitigate risks and demonstrate organizational effectiveness to regulators, such as the DOJ and SEC. Key Highlights and Issues · The Importance of Speak Up Culture · Workforce Dynamics and Compliance · Challenges in Compliance Reporting · Whistleblower Programs and Internal Reporting · Optimizing Compliance Processes Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    14 mins
  • Step 9 - Internal Controls

    Step 9 - Internal Controls
    Aug 1 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss lesson number nine: internal controls. Tom and Nick delve into the importance of internal controls in compliance, emphasizing the pivotal role they play in business operations. After studying the COSO Framework, Tom shares his transformation into a firm believer in internal controls, underscoring that robust financial controls can cover a significant portion of compliance requirements. They discuss real-world examples, including SAP’s lack of payment process controls and ABB’s successful avoidance of a monitor through proactive measures. The episode highlights the necessity of continuous improvement and collaboration between legal, financial, and business units to ensure the effectiveness of internal controls and the appropriate handling of overrides. The session concludes with a nod to the upcoming episode on speak-up, triage, and internal investigation. Key Highlights and Issues The Importance of Internal Controls Financial Controls and Compliance Continuous Improvement in Internal Controls Effective Collaboration and Overrides Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    16 mins
  • Step 8 - Investing in Compliance

    Step 8 - Investing in Compliance
    Jul 25 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss lesson number eight: investing in your compliance program. Tom and Nick highlight case studies from Albemarle, SAP, and ABB, emphasizing the importance of investing in resources, experienced personnel, and the need for continuous testing. The conversation underscores how these efforts build a credible compliance story for the DOJ and provide insights into successfully navigating FCPA remediation. Key Highlights and Issues Enhancing Your Compliance Program ABB’s Compliance Transformation Building a Compliance Story The Importance of Authenticity in Compliance Crafting a Persuasive Compliance Narrative Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    16 mins
  • Step 7 - Changing Your Business Model

    Step 7 - Changing Your Business Model
    Jul 18 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss lesson number seven: changing your business model. In this episode, Tom and Nick discuss the significant transformations by companies like Albemarle and SAP, which shifted from using third-party sales agents to internal teams to enhance compliance and reduce risk. The conversation delves into the Department of Justice’s role in recognizing and endorsing such changes, eventually becoming industry standards. The session also covers the challenges and considerations in explaining such fundamental shifts to stakeholders and effectively managing the associated risks. Key Highlights and Issues: The Role of DOJ in Compliance Solutions Case Studies: Albemarle and SAP Philosophical Changes in Sales Models Risks in Internal vs. Third-Party Sales Model Business Reasons for Internal Sales Explaining Changes to Stakeholders Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    15 mins
  • Step 6 - Clawbacks and Holdbacks

    Step 6 - Clawbacks and Holdbacks
    Jul 11 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the importance of using clawbacks and holdbacks. In episode six of the FCPA Survival Guide, Tom Fox and Nick Gallo delve into the relatively new DOJ enforcement strategies: clawbacks and holdbacks. They discuss how these financial disincentives, formalized in the 2023 Monaco memo, aim to promote corporate compliance. The conversation highlights practical examples from companies like SAP and Albemarle, which implemented these strategies and received substantial credits from the DOJ. Nick emphasizes the importance and effectiveness of financial disincentives in driving behavior change and maintaining corporate integrity. The episode explores how these methods can operationalize compliance at all organizational levels. Key Highlights and Issues Understanding Holdbacks and Clawbacks DOJ’s Pilot Program and Case Studies The Impact of Financial Incentives Corporate Responsibility and Individual Accountability Employee Awareness and Compliance Culture Balancing Positive and Negative Incentives Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    17 mins
  • Step 4 - Root Cause Analysis

    Step 4 - Root Cause Analysis
    May 30 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a complete declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement that your remediation begins with a root cause analysis. In this episode, host Tom Fox and co-host Nick Gallo discuss the importance of conducting a root cause analysis in compliance programs, particularly in light of the recent FCPA enforcement actions highlighting its significance. They use SAP’s approach to root cause analysis as a prime example of effectively identifying and remedying the underlying causes of compliance failures rather than merely addressing symptoms. They relate the human tendency to stop at superficial answers and the importance of discipline in continually asking ‘why’ to uncover true or ‘root’ causes. This approach satisfies regulatory expectations and builds a robust compliance program to prevent future violations. They underline the importance of storytelling in compliance, framing the root cause analysis and subsequent remediation efforts in a narrative that resonates with internal and external audiences, including regulators. Key Highlights and Issues The Importance of Root Cause Analysis in Compliance Human Nature and the Challenge of Deep Analysis DOJ’s Expectations The Art of Storytelling in Compliance Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    15 mins
  • Step 2 – Extraordinary Cooperation

    Step 2 – Extraordinary Cooperation
    May 30 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo outline the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the DOJ requirement of extraordinary cooperation. This episode highlights the definitions of full cooperation and extraordinary cooperation from a law enforcement perspective, emphasizing the advice from Kenneth Polite and Deputy Attorney General Lisa Monaco on acting ‘swiftly and without delay.’ They explore strategies for accelerating investigations without compromising quality, including leveraging technology, ensuring a well-defined process, and engaging the right people. They emphasize the DOJ’s demand for immediacy, consistency, and impact in investigations, linking efficient, real-time processes with the broader goal of compliance and remediation. The discussion also touches on managing messaging apps and the significance of preparation and proactive processes to meet the Department of Justice’s expectations effectively. Key Highlights and Issues: Defining Extraordinary Cooperation and Its Challenges The Importance of Real-Time Systems in Investigations Strategies for Efficient and Effective Investigations Leveraging Technology, Process, and People for Speed The DOJ’s Expectations: Immediacy, Consistency, and Impact The Process Nature of Compliance and Investigation Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    16 mins
  • Step 5 - Data Analytics

    Step 5 - Data Analytics
    May 30 2024
    How can you survive an FCPA enforcement action? In this special podcast series, Tom Fox and Nick Gallo lay out the Top 10 things you can do to reduce your overall fine and penalty, perhaps down to a full declination. All of the actions you can take come from recent DOJ prosecutions under the FCPA and speeches from DOJ representatives. This podcast, sponsored by Ethico, is the companion series to the book The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action. Today, we discuss the importance of data analytics as a key part of any remediation and in today’s compliance regimes. Tom Fox and Nick Gallo are back to discuss the evolving role of data analytics in compliance, highlighting its transition from a cutting-edge tool to a best practice and soon-to-be table-stakes requirement. They review the SAP and Albemarle FCPA enforcement actions to illustrate points where data analytics played a pivotal role in remediation efforts. They look at the foundational aspects of data analytics, paralleling personal finance management to underline its fundamental importance in both personal and professional contexts. Some of the key uses of data analytics are risk identification, response, compliance program testing, and reporting, as outlined by Andrew McBride, a recently retired chief ethics and compliance officer. They conclude by stressing the importance of data analytics in demonstrating program effectiveness and underscore the DOJ’s interest in data-driven evidence of compliance program remediation. Key Highlights and Issues The Evolution and Importance of Data Analytics Understanding Data Analytics Through Everyday Examples Practical Approaches to Implementing Data Analytics The Role of Data Analytics in Compliance Program Testing and Reporting Personalizing Data Analytics for Program Effectiveness Resources: Nick Gallo on LinkedIn Ethico The FCPA Survival Guide: Surviving and Thriving a Foreign Corrupt Practices Act Enforcement Action Tom Instagram Facebook YouTube Twitter LinkedIn
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    16 mins