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What Small And Medium Sized Businesses Need To Know About Compliance Real Life Example: The Cost Of Failure Top 5 Offenses It’s Not Just The Company Proactive Action Mitigate The Risks A small manufacturing company with < 200 employees pleaded guilty to export violations Fines/Penalties 5% of annual revenue Restitution Independent Monitorship Compliance Reform Dangers of New Sanctions/Charges During Probation Period Year Probation Requirements Collateral Damage Brand/Reputation Issues Debarment/Disqualification Employee Retention Effects Hidden Costs Attorney/Professional Fees Investigation Costs Lost Opportunity Costs Required Compliance $$ Environment | Fraud | FDA | Antitrust | Import/Export at least one individual co-defendant are high-level officials 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 Fundamental Cost-Effective High Quality Compliance Training 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. Intercontinental Exchange owns and maintains the copyright and intellectual property in the materials presented in this brochure. Any unauthorized use of the material is prohibited. ©2014 Intercontinental Exchange All Rights Reserved More Than have experienced unintended expenses in the last 12 mo. related to noncompliance 1/3 2009-2012 of all organizational convictions were companies with < 1000 employees 90% $2M 4 50.8% Half Core Compliance Training 88% 20% Weak Culture Strong Culture Avoid The Regulator’s Hammer
