Navigating Compliance Concerns

Posted on 10-31-2017

By: Terrance Oben OBEN LEGAL                                   

THIS ARTICLE DISCUSSES PRACTICAL STEPS THAT companies can take to successfully embed a positive compliance culture and outlines a proposed approach to developing and implementing a compliance program that can be used globally, regardless of industry or the size of your company.

Understanding the Compliance Risk Framework

As a core function of corporate governance, compliance plays an integral role in achieving an organization’s primary objective— maximizing shareholder value and protecting company assets. To achieve this objective, companies must deploy sustainable internal and external long-term strategies focused on enduring operational performance, while protecting the interests of their shareholders and other stakeholders.

What Are Compliance Risks?

Every organization is unique, and so are its costs for doing business. Generally, compliance risks can be viewed as the possibility of present or future loss/damage to an organization’s integrity because of a failure (or apparent failure) to comply with laws, regulations, or other applicable business standards. Therefore, compliance risks are business risks—because they require organizations to conduct business activities within a set of prescribed ethical and/ or legal boundaries. In the context of this article, damage to an organization’s integrity includes legal or regulatory sanctions, financial loss, and damage to reputation, market share, customer base, or contracts.

 

To read the full practice note in Lexis Practice Advisor, follow this link.

 


Terence Oben, Esq. is Managing Counsel at Oben Legal in New York, NY. His practice focusses on corporate governance, ethics, and compliance, assisting domestic and multinational organizations in a variety of industries design, develop, and implement programs and strategies that ensure decision-making, resource allocation, and business activities are aligned with appropriate ethics and compliance considerations for the organization's circumstances. Mr. Oben designs a variety of management mechanisms and tools that organizations use to operationalize legal requirements and integrate ethics into practices. www.obenlegal.com


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For an outline of a proposed approach to developing and implementing a compliance program, see

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RESEARCH PATH: Commercial Transactions > General Commercial and Contract Boilerplate > Compliance Programs and Risk Assessment > Checklists

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> RISK ASSESSMENT

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RESEARCH PATH: Commercial Transactions > General Commercial and Contract Boilerplate > Compliance Programs and Risk Assessment > Checklists

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> CHECKLIST - POTENTIAL TOPICS TO REVIEW IN A RISK ASSESSMENT

RESEARCH PATH: Commercial Transactions > General Commercial and Contract Boilerplate > Compliance Programs and Risk Assessment > Checklists

For a framework of the interview questions that should be asked during the risk assessment process, see

> CHECKLIST– 15 SAMPLE QUESTIONS WHEN PERFORMING A RISK ASSESSMENT

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For an explanation of the seven core elements that must exist in order for a compliance program to be deemed effective, see

> US SENTENCING GUIDELINES – BENCHMARK FOR AN EFFECTIVE COMPLIANCE AND ETHICS PROGRAM

RESEARCH PATH: Commercial Transactions > General Commercial and Contract Boilerplate > Compliance Programs and Risk Assessment > Practice Notes