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DOJ Guidance: From Self-Assessment to Best Practices

August 1st, 2019

Tom Fox, The Compliance Evangelist

Katie Smith, EVP Chief Ethics & Compliance Officer, Convercent

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Agenda

Housekeeping & Introductions

Self Assessment Overview

Best practices

Conclusion

Q&A

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Housekeeping…

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Speakers

Tom FoxCompliance Evangelist ® and author of The Complete Compliance Handbook

Katie SmithEVP, Chief Ethics and Compliance Officer at Convercent

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Compliance Program Evolution

DOJ Guidance

+

Self Assessment

=

Now what?

The Self-Assessment

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Enhancing Your Program with the Assessment

Research

Assess

Prioritize

Dig into your program to get a thorough understanding of its design, implementation, and effectiveness.

Complete the assessment to compare your compliance program against each section of the new guidelines.

Use your scores to cater the recommendations of how to enhance and grow your E&C program.

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Three Fundamental Questions

• Is the corporation’s compliance program well designed?

• Is the program being implemented effectively?

• Does the compliance program work in practice?

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Using the Scores

Emerging

Evolving

Leading

Well Designed

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Initial Questions to Consider

• Is your program designed for maximum effectiveness in

preventing and detecting wrongdoing by employees?

• Is management enforcing the program or is it indirectly

encouraging or pressuring employees to engage in misconduct?

• Is there a clear message that misconduct is not tolerated?

• Are policies, procedures, training programs, systems of incentives

and disciplines well integrated into your company’s operations?

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Program Design Best Practices

Risk Assessment Policies & Procedures Training & Communications

Confidential Reporting Structure &

Investigation Process

Third Party Management

Mergers & Acquisitions

Effectively Implemented

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Initial Questions to Consider

• Is there a significant focus on implementation of your compliance program to

ensure effectiveness?

• Are you consistently reviewing and revising the program in an effective

manner?

• Do you provide staff with necessary information to audit, document, analyze,

and utilize the results of the company’s compliance efforts?

• Are employees not only adequately informed of the program, but committed to

its success through a strong culture of ethics?

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Effective Implementation Best Practices

Commitment by

management

Autonomy & resources

Incentives & disciplinary measures

Works in Practice

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Initial Questions to Consider

• Was misconduct detected? If so, how was it detected?

• What investigation resources are in place to investigate suspected misconduct?

• What is the nature of thoroughness of the company’s remedial efforts?

• Has the corporation made significant investments in and improvements to its

corporate compliance program and internal controls systems?

• Have remedial improvements to the compliance program and internal controls

been tested to demonstrate they would prevent or detect repetitive

misconduct in the future?

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Works in Practice Best Practices

Continuous improvement,

periodic testing, and review

Investigations of misconduct

Analysis and remediation of any

underlying misconduct

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Key Takeaways

• Capitalize on the opportunity to improve using the data and

analytics derived from your program.

• It is critical that you are able to measure, assess, and enhance your

compliance program, AND have a documented process for all of

these strategies going forward.

• The Self-Assessment Tool, along with these recommended best

practices, will give you the basic information to move forward and

elevate your program.

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Resources

https://www.convercent.com/department-of-justice-guidelines-self-assessment

https://www.convercent.com/department-of-justice-guidelines-best-practices

Questions?