Post on 17-Jul-2015
transcript
What Small And MediumSized BusinessesNeed To KnowAbout Compliance
Real Life Example:The Cost Of Failure
Top 5 Offenses It’s Not JustThe Company
Proactive Action Mitigate The Risks
A small manufacturing company with < 200 employees pleaded
guilty to export violations
Fines/Penalties
5% of annual revenue
RestitutionIndependent MonitorshipCompliance ReformDangers of New Sanctions/Charges During Probation Period
YearProbationRequirements
Collateral DamageBrand/Reputation IssuesDebarment/DisqualificationEmployee Retention Effects
Hidden CostsAttorney/Professional FeesInvestigation CostsLost Opportunity Costs
Required Compliance $$
Environment | Fraud | FDA | Antitrust | Import/Exportat leastone individualco-defendant
are high-levelofficials
Nearly
A targeted, well-resourced ethics and compliance program is just a fraction of the cost of a compliance failure and delivers results in lower misconduct instances and higher detection rates.
In 2013, Companies With A Strong Ethical Culture Were Much Less Likely To Experience Misconduct.
% of employees observed misconduct
FundamentalCost-EffectiveHigh QualityComplianceTraining Solution
Find out more and join us for a complimentary webinar.
http://bit.ly/1qpDxZb
RESOURCES: United States Sentencing Commission, 2011-2012 Datafiles, USSCFY11-USSCFY12. 2011 NBES Survey, Ethics Resource Center. https://www.adp.com/tools-and-resources/adp-research-institute/insights/insight-item-detail.aspx?id=270D6830-CB20-4CA9-A566-ADF1897F7E91. United States Sentencing Commission, 2012 Sourcebook of Federal Sentencing Statistics. The Environmental category includes the following offense types: Environmental-Water Pollution, Environmental-Air Pollution, Environmental-Hazardous/Toxic Pollutants, and Environmental-Wildlife.
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More Than
have experienced unintended expenses in the last 12 mo. related to noncompliance
1/32009-2012
of all organizational convictions were companies
with < 1000 employees
90%
$2M4
50.8% Half
CoreComplianceTraining
88%
20%Weak
CultureStrongCulture
AvoidThe Regulator’s Hammer