STUDY GUIDE Compliance and Integrity in International ... · human rights, international order and...

1

STUDY GUIDE

Compliance and Integrity in International Military Trade

(CIIMT)

2019-2021

Netherlands Defence Academy

Faculty of Military Sciences

May 2019

2

Disclaimer

The content of this study guide refers to the modules pertaining to the FMS-CIIMT

curriculum as offered over the course of the Academic Years 2019-2021. No rights can be

obtained from the information in this study guide.

3

Contents

Table of Contents

INTRODUCTION ....................................................................................................................................... 4

MODULE 1: INTERNATIONAL TRADE IN DEFENCE MARKETS ................................................................ 10

MODULE 2: THE REGULATORY ENVIRONMENT: A LEGAL AND BUSINESS PERSPECTIVE ...................... 13

MODULE 3: FRAMEWORKS AND REGULATIONS IN INTERNATIONAL MILITARY TRADE ....................... 17

MODULE 4: MANAGING COMPLIANCE AND INTEGRITY IN MILITARY ORGANIZATIONS ...................... 21

MODULE 5: DESIGNING INTERNAL COMPLIANCE SYSTEMS ................................................................. 24

MODULE 6: MONITORING AND AUDITING INTERNAL COMPLIANCE SYSTEMS .................................... 28

MODULE 7: RESEARCH METHODS FOR EXPORT CONTROLS ................................................................. 32

MODULE 8: MANAGING RELATIONSHIPS IN NON-COMPLIANCE CONTEXTS ....................................... 35

MODULE 9: INTEGRATION PROJECT RELATED TO ASPECTS OF ICP IN BUSINESS ENVIRONMENTS ..... 38

MODULE 10: MASTER THESIS ................................................................................................................ 41

4

INTRODUCTION

The FMS master’s degree program Compliance and Integrity in International Military Trade

(CIIMT) is concerned with exploring, analyzing, understanding, explaining, controlling and

improving the military dimension in international military trade. More particularly, CIIMT

studies managerial questions regarding export control of military/dual-use goods and services.

These questions encompass ethical, organizational, legal and strategic dimensions (e.g.,

human rights, international order and security) that interact directly with defence economic

concerns, ranging from bright, gray to dark economies, depending on the transparency of

markets involved. To prevent misuse as well as to protect commercial interests and

knowledge, the international military trade realm is regulated in detail and various

mechanisms for controlling arms exports are applied internationally. Non-compliance to

export control regulations may result in company fines, individual fines and/or prison

sentences.

This study guide provides you with information about the relevance of the program, the

curriculum structure, course details and the planning for Class 2019-2021 (starting in October

2019). Further course details are available on the electronic learning environment

(MOODLE).

For detailed information about teaching and assessments, see the CIIMT Teaching and

Examination Regulations (TER) CIIMT.

For information on the planning of courses, see the course schedule attached to this guide.

As you will see the program will be taught using a mix of working methods: independent

learning, contact (face-to face) hours and experiential learning. Independent learning will take

place in preparation on the contact weeks. By means of ‘guided’ self-study, weekly, students

study parts of literature and prepare assignments. Some of these will be commented on in the

form of formative feedback, i.e., results will not be used for grading but for gaining better

understanding of the course objectives. Other assignments may be discussed during contact

week(s) or may be part of the overall course grading. Independent learning, as a working

method, should not prevent students to feel free to consult their peers, teaching staff or their

colleagues in the organization. As such, independent learning is related to experiential

learning as well. Key to experiential learning is that students engage in a dialogue within their

organization by sharing new insights and applying these to e.g., problem identification, -

analysis and solution in their professional field. As such, experiential learning may not only

benefit the student but the organization as well. Moreover, experiential learning contributes to

the deepening of understanding and the integration of scientific- and practice based

knowledge.

Relevance

CIIMT provides for students that seek to gain more in-depth understanding, by integrating

practice based- and scientific based knowledge on modern defence procurement. The program

is thought to be of interest to those currently engaged in international trade of military /dual

goods and services either on the demand (MoD, governmental, NATO, EU) side or on the

supply (defence related industry) side, as well as (inter)national regulatory agencies or

research centres.

5

The program encourages initiative and stimulates independent learning required both for an

academic mind-set characterized by critical thinking and reflection as well as for professional

development. It provides students with analytical and methodological research skills. CIIMT

encourages students to bring their own (organizational) problems, to study from differing

perspectives in an interdisciplinary way. In doing so, together with their teaching staff, students

are enabled to develop solutions and to act as each other’s sparring partner concerning

processes and projects regarding international arms trade.

Program focus

At the request of the Dutch MoD, CIIMT is primarily designed to cater for the needs of military

and civilian defence personnel, including EU, NATO+, from all services and/or commands

and Defence relevant industries, agencies and research centres, active in the field. The

program can be seen as a natural follow-up of the FMS bachelor’s degree program in Military

Management Studies.

CIIMT ties in with the FMS-NLDA vision on scientific education, and, similar to other FMS

master’s degree programs, aims to deliver so-called Officer Scholars, embedded in Schön‘s

“reflective practitioners” paradigm. The paradigm refers to two characteristics. First, it unites

both management- and leadership skills needed to decide and operate in high-tension and

high-risk knowledge intensive environments. FMS uses the reflective practitioners paradigm

to refer to critical thinking, reflection, and Bildung that characterize its “thinking doers”,

either at the academic bachelor’s or master’s level.

In view of the complexity of international trade of military and dual use goods and services,

the rapid evolvement of export control, and its importance to procurement processes, defence

organizations are in need of innovative thinking doers, that, based on in-depth understanding,

from an interdisciplinary perspective can be expected to find- and take responsibility for

creative solutions to problems.

Second, being “reflective practitioners”, CIIMT students will be able to draw from their

experiences in the field of trade compliance.

CIIMT, by integrating scientific based- and practice based knowledge, aims for students to

develop as academic professionals, that are able to generate and implement problem solving

strategies and management decisions to further compliance and integrity in export control of

international trade in military and dual use goods and services.

Program objectives

Each CIIMT graduate is, on completion of the program, able to:

1. use state of the art scientific knowledge and new insights to understand relevant managerial

themes and questions regarding export control of international trade in military and dual use

goods and services;

2. generate knowledge regarding export control of international trade in military and dual use

goods and services, both independently and in cooperation, based on obtained scientific

knowledge and insights;

3. set-up an effective and efficient internal compliance program for the own organization;

4. abstract, analyze, structure and relate complex data into relevant information to identify

underlying core questions and themes to gain an overall picture;

6

5. communicate ideas, perspectives and findings, both orally and in writing;

6. consider, reflect and account for their own learning, Bildung and actions.

Who can apply ?

1. Applicants possess a relevant bachelor’s degree at level 6 (or up), according to the

European Qualification Framework (EQF) or equivalent (e.g., Ontario Qualification

Framework level 11) in the domain of: Military Management Studies; Military

Systems and Technology, variant Military Business & Technology as delivered by the

Faculty Military Sciences at NLDA or a comparable degree obtained at (NATO/EU)

partner academy OR

2. Applicants possess a degree at the same level as mentioned under 1) in Economics,

International Law and/or Common Law, Behavioral Sciences and/or Management-

and Organizational Studies. Applicants holding a degree in a comparable domain, may

also be admissible. Depending on their dossier and the advice from the Admissions

Panel, the Executive Board will decide on their admissibility. This is inter alia the

case for applicants of the Netherlands MoD that have successfully completed former

officers education in military management studies (KIM or KMA);

3. Applicants demonstrate relevant experience on the job. I.e., at least 2 to 3 years in export

control of international trade in military and dual use goods and services;

4. Applicants have sufficient command of the English language. This is demonstrated by a

certificate, not older than 5 years at the start of the program of at least: Foreign

certificates from a (Bachelor or Master) program taught in an English-speaking

country; Test of English as a Foreign Language (TOEFL) Internet based, scoring at least

88 points; International English Language Testing System (IELTS) Academic, scoring at

least 6.5 overall; Cambridge English: Advanced (CAE), scoring at least grade B;

Cambridge English: Proficiency (CPE), scoring at least level C1. In all other cases the

Admissions panel will request additional proof of the level of English language

command.

Additionally, Dutch MoD students require permission from their commanding officer/service

command or director.

How to apply ?

The final date for submission of the application form and other documents necessary for

enrolment is August 25th 2019. All applicants will receive notification about their acceptance

to the program before September 7th 2019.

Program structure

Module EC Title Leids level

1 5 International trade in defence

markets

400

2 5 The regulatory environment:

legal and business perspective

400

7

3 5 Frameworks and regulations in

international military trade

500

4 5 Managing compliance and

integrity in military organizations

500

5 5 Designing internal compliance

systems

500

6 5 Monitoring and auditing internal

compliance systems

500

7 5 Research methods for export

controls

500

8 5 Managing relationships in non-

compliance contexts

500

9 5 Integration Project related to

aspects of ICP in business

environments

600

10 15 Master thesis (including IRP) 600

Total 60

The CIIMT Master’s degree program is designed as a part-time taught program taught over

the course of two years, totaling 60 EC. The program derives its coherence from the following

structure.

First, by taking an outside-in perspective, modules 1-4 on, successively, international trade in

defence markets; regulations frameworks; the regulatory environment; and managing

compliance and integrity in military organizations, provide an interdisciplinary context from

which export control in international trade of military and dual use goods and services can be

understood.

Next, building on this background, the program proceeds to deepen the students’

understanding of particular control and information aspects within organizations by studying

(feasibility and boundaries to) re-designing, implementing, monitoring and auditing internal

compliance programs (ICPs) within organizations. As students will be actually involved in

how to construct an ICP, modules 5 and 6 integrate practice-based knowledge and skills,

stemming from their experience in the field, with scientific based knowledge on information

systems and internal control. By sharing knowledge and experience, students and teaching

staff learn from each other and commitment to the program is expected to increase. Building

on these modules and the module on research methods (module 7), it becomes possible to

study and discuss problems, challenges and controversies that will only partly be solved by

ICPs, such as, managing non-compliant behavior or conflicts of interest within and between

organizations in international trade in military and dual use goods and services (module 8).

The Integration Project (module 9), subsequently, draws from all previous modules, enabling

students to conduct their own interdisciplinary research, based on pre-selected key aspects of

an ICP in relation to a specific business environment and using appropriate research methods.

The Integration Project can be seen as a stepping stone to the thesis phase (module 10),

including the individual research proposal (IRP).

8

The first two modules in the CIIMT program commence at Leids level 4001 meant to enable

both a smooth transfer from the bachelor’s to the master’s level as well as setting the scene by

(re)acquainting students with the (defence) economic fundamentals of the program, taken into

consideration they will hail from various professional backgrounds and scientific domains.

Modules 3-8 are developed at level 500, posing increasing challenges to critical thinking,

reflection and independent study from the students. During contact weeks and tutoring

sessions methodological skills will be trained to gain more in-depth understanding that can be

applied to find novel solutions for problems in the field. As the program proceeds in

complexity students are expected to take appropriate responsibility for their own learning

process. Literature is provided at an advanced level intended for researchers and the

assignments are focused on problem solving through increasingly independent research, and

various means of reporting. Throughout the program, assignments focus both on individual

problem solving and problem solving in small groups. Essays and papers require elements of

original research. Modules 9-10, the Integration Project and thesis work are conducted at level

600 and students are asked to contribute a self-directed critical analysis integrating different

views, including the development of an original approach towards the research subject or ICP.

Finally, at Leids level 600, a thesis of 10,000-15,000 words is required for the completion of

the program.

1 Leids Register, level 400: specialized course; level 500: course with an academic orientation; level

600: highly specialized course

9

COURSE DESCRIPTIONS

10

MODULE 1: INTERNATIONAL TRADE IN DEFENCE MARKETS

Administrative details

Course director: Prof. dr. Robert Beeres;

Lecturer(s): Prof. dr. Jeroen Klomp; Prof. dr. Robert Beeres

General objective

From a defence economic perspective, the student can elaborate and reflect on factors that

influence international trade in military and dual-use goods and services and the conditions

determining whether such international trade will be beneficial (or not) and to whom.

Course objectives

The student will be able to:

1. understand and describe international trade as is demonstrated by a clear grasp of the

factors influencing international trade and why, how and to whom international trade is

beneficial;

2. understand and describe what international trade in military/dual-use goods and services

consists of, as is demonstrated by the ability to elaborate whether, why, how and to whom

international trade in military/dual-use goods and services is beneficial; to elaborate on factors

influencing international trade in military useful goods and services;

3. understand and describe scientific research as is demonstrated by the ability to explain,

clarify and apply knowledge acquired from state of the art scientific papers; the ability to

read, analyze, synthesize and communicate across theoretical disciplines succinctly.

Course description

In this first course of the program the economic foundations underlying arms export controls

are studied. Generally, in line with the Ricardian view on comparative advantage, export is

regarded to be beneficial to participating countries. Similarly, concerning arms trade, it is put

forward that access to foreign markets is a sine qua non for a thriving domestic arms industry

in the long run. However, it is also widely recognized that arms exports can hold negative

externalities on national security and, as a consequence, national controls on arms industry

exist at a global scale. Primarily, during this course, we will focus on economics, for, to study

regulating and controlling international arms trade in a meaningful way, it is necessary to first

understand the details of the economic dynamics involved. The impact of ethics, politics and

strategic concerns on arms trade will be studied in subsequent courses.

Secondly, this course aims to develop academic skills. To this end, and next to the textbook,

students study a selection of journal papers and prepare to present their findings by

conducting some formative assignments. During contact hours feedback will be provided and

together, teaching staff and students reflect on how the papers have been studied.

While preparing for their presentation, students will reflect on:

- Interpretation of the central question and contribution of the paper;

- Structure of the paper;

- Content (theoretical and empirical) of the paper;

- Conclusions;

- Relevance for practice;

- Relevance of the paper in relation to the theoretical part of the lecture/working group.

11

Course structure and method

The course is conducted at level 400 and amounts to 5 ECTS. 1 ECTS equals 28 hours of

study load. Education is based on the preparation-feedback model.

Preparation Phase

Week Reading Assignment(s)

1 Krugman et al (2015) Chapter 1 & 2,

Kempf (2016),

Martinez-Zarzoso and Johannsen (2017)

Read and prepare

presentation Kempf (2016)


Pamp and Thurner (2017)

Read and prepare

presentation Pamp and

Thurner (2017)


Fuhrmann (2008),

Fuhrmann (2009)

Read and prepare

presentation Fuhrmann

(2009)


Florquin (2014)

Read and prepare

presentation Killicoat (2007)


Holtom and Bromley (2010)

Read and prepare

presentation Moore (2010)

Feedback Phase

Lectures/Contact Week

Day 9:00-12:00 13:00-16:00

1 Introduction to CIIMT, introduction to

scientific research, how to read academic

papers from different disciplines

Introduction to (defence) economic

thinking – revisiting basics

2 Introduction to international military trade Why do nations trade?

Comparative advantage

(Ricardian model; specific factor

model)

Students presentation & reflection

Martinez-Zarsoso & Johannsen (2017)

3 Why do nations trade?


(Heckser-Ohlin model; standard trade

model)

Student presentation & reflection

Pamp & Thurner (2017)

Why do nations trade?


(External economies of scale)

Student presentation & reflection

Fuhrmann (2009)

4 Why do nations trade?


(Internal economies of scale)


Killicoat (2007)

What should a nation’s trade policy be?

Instruments of trade policy


Moore (2010)

5 Recap Exam

12

Literature

Book

Krugman PR, Obstfeld M, Melitz MJ (2015) International Trade. Theory and Policy. Pearson

Education Limited, Harlow: England.

Papers

Florquin, N. (2014). Arms prices and conflict onset: Insights from Lebanon and Syria.

European Journal on Criminal Policy and Research, 20(3):323-341.

Fuhrmann M (2008) Exporting mass destruction? The determinants of dual-use trade. Journal

of Peace Research 45(5):633-652.

Fuhrmann M (2009) Taking a walk on the supply side: The determinants of civilian nuclear

cooperation. Journal of Conflict Resolution 53(2):181-208.

Holtom P, Bromley M (2010) The International Arms Trade: Difficult to Define. Measure and

Control, Arms Control Today 40(6):8-14.

Kempf JD (2016) Making A Killing: A Study of the Trade and Production of Arms.

Martínez-Zarzoso I, Johannsen F (2017) The Gravity of Arms. Defence and Peace

Economics: 1-25.

Killicoat P (2007) Weaponomics: the global market for assault rifles. The World Bank.

Moore M (2010) Arming the embargoed: A supply-side understanding of arms embargo

violations. Journal of Conflict Resolution 54(4):593-615.

Pamp O, Thurner PW (2017) Trading arms and the demand for military expenditures: Empirical

explorations using new SIPRI-data. Defence and Peace Economics 28(4): 457-472.

Assessment

Presentation 30%

Exam 70%

13

MODULE 2: THE REGULATORY ENVIRONMENT: A LEGAL AND

BUSINESS PERSPECTIVE


Course director: prof. dr. Jeroen Klomp

Lecturers: prof. dr. Jeroen Klomp; COL dr. Joop Voetelink LLM; guest lecturers

General objective

The student understands the relevance of law and legal knowledge for managers and is able to

reflect on the interrelatedness between law and business in an international context. Thereby

developing the legal awareness required to analyze export compliance aspects of international

trade in defence markets.

Course objective


1. identify and reflect on an organization’s legal and regulatory environment (hard law and

soft law) in order to recognize and understand applicable legal and regulatory requirements,

including the involved institutions;

2. explain and reflect on the influence of international military trade on an organization’s

regulatory environments;

3. explain and reflect on property law as a foundation of trade, in order to have a better legal

understanding of international arms trade business;

4. explain and reflect on the characteristics and function of intellectual property rights and

their role in innovative markets like the arms trade business;

5. explain and reflect on contract law in general and the function of sales and services

contracts in particular, as a foundation of commercial relations, in order to have a better legal

understanding of international trade in arms;

6 analyze and reflect on the legal and business aspects of military trade regulation for a self-

selected business case involving different elements of the legal system (i.e., property law,

contract law, commercial law and the different legal forms that the law provides).

Course description

This course provides students that aspire to be/are involved in international arms trade in

defense markets the opportunity to gain a concise overview of the interrelatedness of law and

business in an international military trade context. The bodies of regulations organizations

have to, or prefer to, comply with are one of many factors to take into account in today’s

organizational environments that are becoming increasingly complex. Underlying this

complexity are, for instance, the introduction of new regulations in some business areas,

whereas, deregulation takes place in others, internationalization and accelerations spurred by

technological changes and innovations. Whenever organizational regulatory environments

become more complex, organizations find themselves exposed to more risks. From a strategic

perspective on trade in military (useful) goods, it could be concluded international defense

markets are regulated already beyond average. Organizations that operate in international

defense markets have been reporting, that, due to increases in regulations, their corporate

strategies, reputations, risk management and commercial activities have been adversely

affected. By studying, analyzing and reflecting on the interrelatedness of both legal and

business concepts students will develop necessary awareness to understand and function in

international trade in defense markets.

The lectures are mainly build around the question “how do the international regulation and

control of arms exports affect the way of doing business of organizations”. The classes in the

14

contact week are organized in two sessions. In the morning session, a number of selected

topics about international arms trade control are discussed, while in the afternoon session the

focus moves towards more general legal topics relevant for business and military export

control.

Secondly, this course aims to develop academic skills. To this end, students will have to

analyze and reflect on the legal and business aspects of a specific case taken from their own

organization involving international military trade in goods and/or services. The students will

write a paper addressing the following legal aspects: the regulatory environment of the

business case; the role of international arms trade regulations and control; legal status of the

parties involved; contractual relations; ownership; intellectual property; service and

maintenance contracts. These legal aspects will be studied during the course and the

assignments that have to be prepared for the course and should be used as input for the paper.

Course structure and method The course is conducted at level 400 and amounts to 5 ECTS. 1 ECTS equals 28 hours of


Preparation


1

Achilleas (2017),

Jansen (2016)

Chapter 1,

Klabbers (2017)

Chapter 2 & 4

Position Paper: Define your own business case. Preferably,

select an acquisition or disposal project you know from your

professional experience. Inform your lecturers the first day of

this course about the case you selected. Write a position paper

titled

“Why managers involved in your business case should have

considerable legal awareness.” (1.500 words)

Prepare for an in-class discussion based on your position

paper.

2

Jansen (2016)

chapter 4 & 5,

Joyner (2004),

Seyoum (2016),

2-Page Memo: Make an analysis of property law aspects of the

business case you selected in week 1 and elaborate on how

these aspects function as business enabler.

(800 words)

Prepare arguments for an in-class discussion concerning the

relevance of property law for the compliance profession.

3

Jansen (2016)

chapter 6 & 8,

Jones (2003),

Micara (2012)

2-Page Memo: Make an analysis of contract law aspects of the

business case you selected in week 1 and elaborate on how


(800 words)


relevance of contract law for the compliance profession.

4

Brzoska (2008),

Van Bergeijk and

Biersteker (2015),

Jansen (2016)

Chapter 7 & 9,

Klabbers (2017)

Chapter 9.

2-Page Memo: Make an analysis of commercial law aspects of

the business case you selected in week 1 and elaborate on how


(800 words)


relevance of contract law for the compliance profession.

5

Paper: Finish the analysis of and reflection on the legal aspects

of the business case you selected in week 1 by combining the

15

input of week 1-4 (4.000 words)Prepare a presentation of

your paper and an in class-room discussion. (See assessment)

Prepare a peer review report of the paper of a fellow student

(500 words). (See assessment)

7 Experiential

learning week Revising paper and handing in final version

Feedback


Day 9:00-12:00 13:00-16:00

1 Introduction of international law and

business in the context of arms trade

compliance

The regulatory environment

2 Export control regimes

Property law

Discussion memo week 2

3 The European Union

Contract law


4 Sanctions and embargoes

Commercial law


5 Presentations (See assessment)

Continue presentations

Literature

Book

Jansen, NA (2016), “Law and Self Regulation – Legal and Business Perspectives”,

LegalMarketing.nl.

Klabbers, J (2017), “International Law” (2nd ed.), Cambridge University Press

Papers

Achilleas, P. (2017) Introduction Export Control. In Achilleas, P. (eds) Theory and Practice

of Export Control Balancing International Security and International Economic Relations.

Springer.

Brzoska, M (2008) Measuring the Effectiveness of Arms Embargoes. Peace Economics,

Peace Science and Public Policy 14(2): 1-32.

Joyner, D (2004) Restructuring the multilateral export control regime. Journal of Conflict &

Security Law 9(2): 181–211.

Jones, S. (2003) EU enlargement: Implications for EU and multilateral export controls. The

Nonproliferation Review, 10:2, 80-89.

Micara, A. (2012) Current Features of the European Union Regime for Export Control of

Dual-Use Goods. Journal of Common Market Studies 50(4): 578–593.

Seyoum B (2016) National Security Export Control Regimes: Determinants and Effects on

International Business. Thunderbird International Business Review: 1-16.

Van Bergeijk, A.G. and Biersteker T. (2015) How and when do sanctions work. The

evidence. In Dreyer I. and Luengo-Cabrera J. On target? EU sanctions as security policy

tools. EU institute for Security Studies. Paris.

Assessment

Paper (3.000 words): Analysis of and reflection on the legal aspects of a business case

involving military (useful) goods (80% of grade)

16

Presentation of paper (10 minutes) and peer review report (5 minutes) (20% of grade)

17

MODULE 3: FRAMEWORKS AND REGULATIONS IN INTERNATIONAL

MILITARY TRADE


Course director: COL dr. Joop Voetelink LLM

Lecturers: COL dr. Joop Voetelink LLM; guest lecturers

General objective

Students understand key concepts and rules in (inter)national law that govern trade in military

and dual-use goods and services, and developments thereof, as well as the aims and functioning

of institutions in the field of arms control. They can identify and apply the most important

export/import laws and regulations, taking into account their effects on organizations operating

in the context of international trade of military and dual-use goods and services.

Course objective


1. Reflect on and explain the rationale and aims underpinning international law in relation to

export control as well as key concepts and institutions in the field of trade in military / dual-

use goods and services, and can identify and apply the most relevant national and

international export/import laws and regulations;

2. Make responsible and well-argued theoretical and methodical choices in relation to

analyzing the industry-wide and organizational impact of specific export/import laws and

regulations;

3. Can express ideas and visions in relation to the industry-wide and organizational impact of

specific export/import laws and regulations;

4. Deliver a well-structured presentation on independent work regarding the application of

relevant export/import laws and regulations within an organization;

5. Independently gain and apply knowledge concerning export/import laws and regulations;

and

6. Reflect and assess critically his/her own findings and courses of action in relation to the

course assignments.

Course description

This course provides students with key concepts, developments and institutions concerned

with export/import controls so that they can determine the organizational impact of relevant

laws and regulations. It will delve into the effects, that main export and import control laws

and regulations impose on organizations, namely EU Regulations 428/2009, Union Customs

Code, and the legal framework in the EU concerning the export and import of military / dual-

use goods and services, the International Traffic in Arms Regulations, Export Administration

Regulations, and U.S. Customs Regulations. Students will gain insight and understanding in

how these laws, regulations, and institutions impact on industries and organizations in the

defence market.


study load. Education is based on the preparation-feedback model. This course will be

delivered by a combination of pre-readings, lectures, class discussion and case studies. Pre-

readings and lectures are designed to provide essential information and introduce students to

key concepts and understanding of the relevant laws and regulations. Class discussion will

18

help to learn from one another’s experiences. Casework applies key concepts to

organizational practice in the trade compliance field.

Preparation


1 Aubin and Idiart (2016) Chapter 1 & 2,

Klabbers (2017) Chapter 5 & 6,

Genard (2014),

Franchini (2018),

Ryngaert (2008)

Export Control Law is not a well-

defined ‘discipline’ of law. Write a

paper discussing what is, in your

opinion, the essence of Export Control

Law, concluding the paper with a

definition of Export Control Law. Also,

include in the paper a diagram reflecting

the relationship between all relevant

fields of international law contributing

to Export Control Law.

The paper will be discussed in the

contact week; day 1.

2 Aubin and Idiart (2016) Chapter 6 & 17,

Alavi & Khamichonak (2016),

Chapman (2013) chapter 1

Position paper: The differences

between regulatory practices within the

EU invites authorization shopping

(1000 words)

At the end of week 2 the students

submit the analysis of EU law, which is

part of the position paper, on Moodle.

This position paper will be summative

assessed.

Prepare for leading an in-class

discussion concerning the differences

and synergies between OFAC sanctions

regulations, EAR, and ITAR.

The in-class discussion will be

formatively assessed.

3 Bourdet & Persson (2012),

European Commission (2016).

4 Chapman (2013) Chapter 2 (p. 47-49; 89-

97 & 133-137; read other pages) & chapter

(p. 186-196 & 216-22; read other pages)

At the end of week 4 the students submit

the analysis of US export control law,

which is part of the case analysis, on

Moodle.

5

Aubin and Idiart (2016) Chapter 5,

Bartlett & Poling (2016),

Bromley (2017),

Fergusson & Kerr (2018),

Franchini (2018)

Student are invited to submit on Moodle

a current issue, which, in their opinion

and based on their (working)

experience, is worth discussing in the

final session of the Module

19

Feedback

Lectures/Contact week

Day 9:00-12:00 13:00-16:00

1 Mapping the Field: Legal Framework &

Interrelationship between Constituting

Elements of Export Control Law

(In-class discussion Paper I).

Mapping the Field (cont’d);

Extraterritorial Jurisdiction.

2 EU & Export Control, Background &

Operation.

US & Export Control, Background &

Operation

(incl. FMS).

3 EU & Export Control, Practice.

Class-exercise: application of EU-law

EU & Export Control, Practice

(cont’d);

EU Customs.

4 US Customs;

US & Export Control, Practice: ITAR;

Class-exercise: application of US-law

US & Export Control, Practice: ITAR

(cont’d).

5 US & Export Control, Practice: EAR &

OFAC (cont’d).

Current Issues:

- Modernization EU Export Control

Regime (Dual Use Regulation);

- US Export Control Reform;

- China.

Literature

Books

- Aubin Y, Idiart A (2016) Export Control Law and Regulations Handbook: A Practical

Guide to Military and Dual-Use Goods Trade Restrictions and Compliance. Kluwer

International: Alphen aan den Rijn

- Chapman B (2013) Export Controls. A Contemporary History, University Press of

America

- Klabbers, J (2017), International Law (2nd ed.). Cambridge University Press

Papers

- Alavi H & Khamichonak T (2016) A European Dilemma: The EU Export Control

Regime on Dual-Use Goods and Technologies. Law and Economics Review 7(3):161-

172

- Bartlett, JE & Poling, JC (2016) Defending the Higher Walls - The Effects of U.S.

Export Control Reform on Export Enforcement Santa Clara Journal of International

Law, Vol. 14, Issue 1

- Bourdet, Y. and Persson, M. (2012), Completing the European Union Customs Union:

The Effects of Trade Procedure Harmonization. Journal of Common Market Studies,

50: 300–314

- Bromley M (2017) Export controls, human security and cyber-surveillance

technology: Examining the proposed changes to the EU Dual-use Regulation, SIPRI

Background Paper, December 2017

- European Commission (2016) Report on the EU Export Control Policy Review.

20

- Fergusson IF, Kerr PK (2018) The U.S. Export Control System and the Export Control

Reform Initiative, CRS Report (updated 22 May 2018)

- Franchini D (2018) ‘With Friends Like That, Who Needs Enemies?’: Extraterritorial

Sanctions Following the United States’ Withdrawal from the Iran Nuclear Agreement,

Published on 29 May 2018, EJIL: Talk!, Blog of the European Journal of International

Law (tentative)

- Genard Q (2014) European Union Responses to Extra-Territorial Claims by the

United States: Lessons from Trade Control Cases, EU Non-Proliferation Consortium,

No. 36.

- Ryngaert C (2008) Extraterritorial Export Controls (Secondary Boycotts) Chinese

Journal of International Law, Vol. 7(3)

Assessment Position Paper (30% of grade).

Case study analyses (70% of grade)

21

MODULE 4: MANAGING COMPLIANCE AND INTEGRITY IN MILITARY

ORGANIZATIONS


Course director: dr. Job Timmermans

Course lecturer(s): dr. Job Timmermans; prof. dr. Robert Beeres; dr. Andre Hoogstrate; dr.

Eric-Hans Kramer

General objective

The student understands, can elaborate and reflect on relevant and recent theories and models

for managing compliance and integrity in (military) organizations, with specific attention to

organizations in the context of arms export control.

Course objectives


1. understand, explain and discuss moral behavior using concepts of compliance and integrity;

2. understand, explain and discuss the contribution of a virtue ethics approach to bolster and

support moral behavior in organizations;

3. understand, explain and discuss systems theory fundamental to thinking on organizational

governance. Particularly, regarding (a) abstract and concrete systems (b) the diagnosis and

design of viable systems, and (c) systems theoretical principles underlying (the building of)

organizational structures;

4 think systematically, to integrate (1), (2) and (3) with regard to the diagnosis and (re)design

of virtuous corporate governance structures, incentives and performance management systems

geared towards the anchoring of ethical conduct in organizations dealing with arms export

control.

Course description

From an interdisciplinary systems theoretical background, the course regards the management

for compliance and integrity in (military) organizations to be a both moral as well as an

organizational diagnosis- and design problem. Using theories on systems regulation and

control (Ashby), viable systems (Beer) and sociotechnical organization design (De Sitter),

students study and reflect on organizational governance and control.

The course is based on both a virtue ethics and an integral management and organizational

perspective. Central to virtue ethics is the development of moral character amongst

organizational members. Based on this notion, we question how organizations support their

members to exercise and develop moral character. Students are asked to study this question

from an integral organizational and management perspective. More particularly, they are

asked to reflect on the ways in which organizational tasks, roles and functions are defined and

interrelated in the operational-, control- and information structures of organizations and how

such structures contribute to support desired ethical and moral behavior. Students are then

invited to apply these insights to organizations that operate in the context of arms export

controls

During preparation phase and the first three days of contact week (feedback phase), students

work on a model for organizational diagnosis and (re)design that expresses their own ethical

awareness and moral insights and character. Next they will apply this model on one out of

three case studies to be presented during the last two days of contact week. At the end of

contact week, students will submit both the model they have constructed as well as the

application of this model to the selected case study.

22



Preparation Phase


1 Achterbergh & Vriens (2010) Chapter 1

Audi & Murphy (2006)

Paine (1994)

Assignment 1

2 Achterbergh & Vriens (2010) Chapter 9 & 10, Assignment 2

3 Achterbergh & Vriens (2010) Chapter 2;

Ashby & Goldstein (2011)

Andries (2013)

Assignment 3


Mingers & White (2010)

Achterbergh, Beeres & Vriens (2003)

Assignment 4


Vriens, Achterbergh & Gulpers (2016)

Schreyögg & Sydow (2010)

Assignment 5

Feedback Phase


Day 9:00-12:00 13:00-16:00

1 Introduction of organizational integrity &

organizations as social systems

Ethics and poor & rich survival

2 Cybernetics, viability Functional design principles for viable

infrastructure

3 Organizational assessment according to

virtuous structures

Recap & Conceptual model report

4 Introduction of cases; case selection Apply model for diagnose & (re)design

5 Case study report Continue Case study report

Literature

Book

Achterbergh, J., & Vriens, D. J. (2009). Organizations: social systems conducting

experiments. Dordrecht ; New York: Springer.

Papers

Achterbergh, J., Beeres, R., & Vriens, D. (2003). Does the balanced scorecard support

organizational viability? Kybernetes, 32(9/10), 1387–1404.

Andries, C. (2013). CREW RESOURCE MANAGEMENT. In Defense Resources

Management in the 21st Century (pp. 1–5). Brasov: Romanian National Defense University,

Regional Department of Defense Resources Management Studies.

Audi, R., & Murphy, P. E. (2006). The many faces of integrity. Business Ethics Quarterly,

16(1), 3–21.

23

Ashby WR, Goldstein J (2011) Variety, constraint, and the law of requisite variety.

Emergence: Complexity and Organization, 13(1/2), 190-207.

Mingers J, White L (2010) A review of the recent contribution of systems thinking to

operational research and management science. European Journal of Operational Research,

207(3), 1147-1161.

Paine LS (1994) Managing for organizational integrity. Harvard business review, 72(2), 106-

117.

Vriens D, Achterbergh J, Gulpers, L (2016) Virtuous Structures. Journal of Business Ethics,

1-20.

Georg Schreyögg, Jörg Sydow, (2010) CROSSROADS—Organizing for Fluidity? Dilemmas

of New Organizational Forms. Organization Science 21(6):1251-1262.

Assessment

Delivering a model for diagnosis and design (50%) and applying this to one of two cases

(50%)

24

MODULE 5: DESIGNING INTERNAL COMPLIANCE SYSTEMS


Course director: Col. dr. Robert M.M. Bertrand RA RC RO

Lecturer(s): Col. dr. Robert M.M. Bertrand RA RC RO; dr. Tom de Schryver; dr Andre

Hoogstrate

General objective

The student has a broad understanding and knowledge concerning theoretical and practical

elements relevant to develop an Internal Compliance System. The student can apply both

knowledge and skills to set-up an effective and efficient Internal Compliance System for

organizations in the field of trade compliance. He/She can motivate and substantiate choices

made in the design of an Internal Compliance System.

Course objectives


1. understand, reflect, analyze and communicate on core concepts regarding internal control

and management control;

2. understand the role and functioning of risk assessments and apply risk management tools

in the field of trade compliance;

3. discover and analyze IT risks and to design adequate controls to match these risks;

4. design, implement and monitor an Internal Compliance System.

Course description

This course will provide students both theory, models and knowledge on internal- and

management control, and risk management to understand, reflect and analyze the workings of

Internal Compliance Systems in the field of trade compliance. Moreover, during the course

students are enabled and motivated to develop skills and know-how necessary to design,

implement and keep up-to-date internal compliance systems in the field of trade compliance.

Course structure and method The course will be given at level 500 and is 5 EC. The educational model used is the

Preparation-feedback model. This course will be delivered by a combination of pre-readings,

lectures, class discussion and case studies. Pre-readings and lectures are designed to provide

essential information and introduce students to theoretical concepts and models. Class

discussion and group work help to learn from one another’s experiences and internalize

theoretical understanding by applying it to the context of Internal Compliance Systems.

Casework applies theoretical concepts to organizational practice in the trade compliance field.

Preparation


1 Vaassen et al (2009) Chapter 1, 2, 3, 4

& 5

2 Vaassen et al (2009) Chapter 6, 7, 8, 9,

10 & 11

Prepare AIS Case Nordtrans

3 Steinberg (2011) Chapter 5, 6 & 7,

COSO Application Techniques (2004)

Prepare AIS Case Fly Away Flight

School.

4 Biegelman et al (2008) Chapter 9 & 10 Prepare BRI Case United Technologies

Corporation.

25

5 Steinberg (2011) Chapter 2 & 4

Biegelman et al (2008) Chapter 2

Prepare a concise description of the

procedures (implementing checks &

screenings & addressing vulnerabilities)

concerning trade compliance in their

own organization.

Feedback

Lectures/ Contact week

Day 9:00-12:00 13:00-16:00 Assignment(s)

1 Introduction to the core

concepts of internal

control, management

control and IT (COSO,

COBIT, control theories

etc.)

Primary and secondary

processes in organizations

Typology of Organizations

Students presentation &

discussion AIS Case

Nordtrans

COSO (2004), Ouchi

(1979), Merchant (1982),

Simons (1994), Speklé en

Verbeeten (2014)

2 Risk assessment and risk

management tools

Risk and internal controls

in trade compliance


discussion AIS Case Fly

Away Flight School

COSO (2004) Application

techniques, Paape en

Speklè (2012)

3 IT risks and IT controls Designing an Internal

Compliance Framework:

core elements


discussion BRI Case

United Technologies

Corporation

BIS (2011) Compliance

Guidelines

COBIT (2012)

4 Designing an Internal

Compliance Framework:

the human factor

Implementation of the

Internal Compliance

System


discussion of the concise

description of the

procedures

5 Self-assessment, internal

and external audit

See assessment

Assessment

The assessment consists of two parts;

1. A group presentation (30%) reflecting on the importance of designing, implementing and

monitoring an Internal Compliance System for any organization dealing with trade

compliance, and:

2. A limited individual case study (based on a case provided by course lecturers) on the

design, implementation and monitoring of an Internal Compliance System, including an

analysis of internal- and management control problems that the Internal Compliance System

will be confronted with/dealing with; a risk management analysis regarding the specific

organizational context as well as a reflection on how the Internal Compliance System, given

the above, will best be designed, implemented and monitored. Last, the student will have to

26

think on what problems in trade compliance will not be solved by the introduction of this

Internal Compliance System and, therefore, what other organizational safeguards will have to

be in place. With the case there will be given specific questions on topics described above

(70%). The case study needs to be handed in at the end of the experiential learning week.

Literature

Books

Biegelman, M.T., Biegelman, D.R. (2008) Building a World-Class Compliance Program:

Best Practices and Strategies for Success. John Wiley & Sons: New Jersey.

Steinberg, R.M. (2011) Governance, Risk Management and Compliance. It Can’t happen to

Us – Avoiding Corporate Disaster While Driving Success. John Wiley & Sons: New Jersey.

Vaassen, E.H.J., Meuwissen, R.H.G., Schelleman, C.C.M. (2009) Accounting Information

Systems and Internal Control. (2nd edition) John Wiley & Sons: New Jersey.

Papers

Merchant, K.A. (1982). The Control Function of Management. Sloan Management Review,

Summer, 43-55

Ouchi, W.G. (1979). A Conceptual Framework for the Design of Organizational Control

Mechanisms. Management Science, 25 (9), September, 833-848

Paape, L., & Speklè, R. F. (2012). The adoption and design of enterprise risk management

practices: An empirical study. European Accounting Review, 21(3), 533-564.

Simons, R. (1994). How New Top Managers Use Control Systems as Levers of Strategic

Renewal. Strategic Management Journal.15, (3), 169-189

Speklé, R.F. & Verbeeten, F. (2014). The Use of Performance Measurement Systems in the

Public Sector: Effects on Performance. Management Accounting Research, 25 (2), 131-146.

Reports

Federal Office of Economics and Export Control, BAFA (2012). Internal Compliance

Programmes - ICP Internal Export Control Systems.

Control Objectives for Information and related Technology (COBIT) (2012). A Business

Framework for the Governance and Management of Enterprise IT

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2004).

Enterprise Risk Management – Integrated Framework. New York, NY: COSO


Enterprise Risk Management – Integrated Framework. Application Techniques. New York,

NY: COSO


Enterprise Risk Management – Integrating with Strategy and Performance. New York, NY:

COSO

U.S. Department of Commerce, Bureau of Industry and Security (BIS) (2011). Compliance

Guidelines: How to Develop an Effective Export Management and Compliance Program and

Manual.

U.S. Department of State, Directorate of Defense Trade Controls. Compliance

Program Guidelines.

The Wassenaar Arrangement (2011). Best Practice Guidelines on Internal Compliance

Programmes for Dual-Use Goods and Technologies

27

Additional literature

Books

Hofstede, G., Hofstede, G.J. & Minkov, M. (2010). Cultures and Organisations: Software of

the Mind. New York: McGraw Hill.

Simons, R. (1995a). Levers of Control. How Managers Use Innovative Control Systems to

Drive Strategic Renewal. Boston: Harvard Business School Press.

Romney, M.B., Steinbart, P.J. (2018) Accounting Information Systems. (14th edition) Pearson:

Harlow.

Simons, R. (2000). Performance Measurement & Control Systems for Implementing Strategy.

Boston: Harvard Business School Press.

Papers

Corr, C.F. (2003). The Wall still stands! Complying with Export Controls on Technology

Transfers in the Postcoldwar, Post-9/11 Era. Houston Journal of International Law, 25(3),

441–530.

Hermanson, D.R., & Hermanson, H.M. (1994). The Internal Control Paradox. Review of

Business, 16. Review of Business, 16(2), 29–32.

Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online

Readings in Psychology and Culture, 2(1).

Simons, R. (1995b). Control in an Age of Empowerment. Harvard Business Review,

March/April, 80-88.

Vaassen, E.H.J. (2007). Research Opportunities in Internal Control; Focus on Organizational

Compliance. Management Control & Accounting. (11), March, 45-50.

Williamson, R. L. (2003). Hard Law, Soft Law, and Non-Law in Multilateral Arms Control:

Some Compliance Hypotheses. Chicago Journal of International Law, 4 (1), 59-82.

28

MODULE 6: MONITORING AND AUDITING INTERNAL COMPLIANCE

SYSTEMS


Course director: Col. dr. Robert Bertrand RA RC RO

Lecturer(s): Col. dr. Robert Bertrand RA RC RO; dr. Tom De Schryver; Dr. A.J. Hoogstrate

General objective

The student has knowledge of all theoretical and practical elements that are relevant to

monitor and audit an Internal Compliance System. Although in practice mostly the

designation audit is used (as we do in the rest of this description) this course deals with both

monitoring and auditing since it covers both ongoing surveillance, review and analysis

(monitoring) and the more periodic performed audits. The student can apply the knowledge

and has the skills to effectively and efficiently plan, perform, report on audits of an Internal

Compliance System for any given organization (both operational and compliance audits).

He/she can motivate and substantiate choices made in the different stages of the audit process.

The compliance audits can aim for assurance as well as to provide advice for improvements

of an Internal Compliance System.

Course objective


1. understand, reflect and communicate the core concepts of internal auditing (focusing on

operational and compliance audits);

2. plan, perform, report on compliance audits focusing on trade compliance and provide

advice on the results thereof;

3. plan, perform, report on operational audits of an Internal Compliance System and provide

advice on the results thereof;

4. design and implement a strategy to increase the maturity level of a compliance system;

5. report to executive management of an organization on the compliance risk profile of the

company, the level of (internal) control concerning compliance and specific issues in the field

of trade compliance (e.g., claims, fines).

Course description

This course will provide to students all the knowledge and learn the skills to effectively and

efficiently plan, perform, report on audits of an Internal Compliance System in the field of

trade compliance, provide advice to and act as a sparring-partner for executive management.

Course structure and method The course will be given at level 500 and is 5 EC. The educational model used is the

Preparation-feedback model. This module will be delivered by a combination of pre-readings,

lectures, class discussion and case studies. Pre-readings and lectures are designed to provide

essential information and introduce students to theoretical concepts and models. Class

discussion and group work help to assimilate the knowledge and apply it to the context.

Casework applies the concepts from the lectures and literature.

29

Preparation


1 Adams et al. (2012) Chapter 3, 4 & 5

Part 1

Write a short (max. 10 pages) paper on

the main categories of audits and their

relevance for (the) Internal Compliance

(System).

2 Graham (2015) Chapter 8, 9, 10 & 11,

Adams et al. (2012) Chapter 8 & 9 Part

2

Write an audit proposal (max. 8 pages)

on planning, performing and reporting

on a trade compliance audit in the actual

work environment

3 Adams et al. (2012) Chapter 2 Part 1,

Romney et al. (2018) Chapter 11

Reflect on main implications of IT in

everyday modern businesses affected by

trade compliance

4 Biegelman et al. (2010) Chapter 9, 10,

11 & 12

Prepare CFE Case: Ward (2015)

5 Biegelman et al. (2008) Chapter 11, 12

& 13

Provide a short (max. 4 pages)

management advice on increasing the

maturity level of trade compliance in

your work environment

Feedback

Lectures/Contact week

Day 9:00-12:00 13:00-16:00 Assignment(s)

1 Introduction to the core

concepts of internal

auditing (ISA, IPPF,

ISACA etc.)

Self-assessments and

operational audits of an

Internal Compliance

System


discussion on paper on

categories of audits

2 Key Performance

Indicators for trade

compliance, gap-analysis /

slack-analysis

Planning, performing and

reporting on compliance

audits focusing on trade

compliance


discussion on audit

proposal

3 Auditing in an automated

environment / IT auditing

Process Mining Students presentation &

discussion of IT impact

reflection

Chan en Vasarhelyi (2011)

4 Red Flags indicating fraud

and Fraud investigations

Integrated reporting on the

compliance risk profile of

the company, the level of

(internal) control

concerning compliance and

specific issues in the field

of trade compliance;

Communications with

management / audit

committee / external

auditors


discussion CFE Case

Prevent diversions to

forbidden nations. Avoid

export controls and

sanctions violations

5 Developing a strategy to

increase the maturity level

of a compliance system;

Open book exam Students presentation &

discussion management

advice

30

Consulting and advice on

improvements

Literature

Books

Adams, P., Cutler, S., McCuaing, B., Rai, S., Roth, J. (2012) Sawyer’s Guide for Internal

Auditors (6th Edition). The Institute of Internal Auditors Research Foundation: Altamonte

Springs, Florida.

Biegelman, M.T., Biegelman, D.R. (2008) Building a World-Class Compliance Program:

Best Practices and Strategies for Success. John Wiley & Sons: New Jersey.

Biegelman, M.T., Biegelman, D.R. (2010) Foreign Corrupt Practices Act Compliance

Guidebook. John Wiley & Sons: New Jersey.

Graham, L. (2015) Internal Control Audit and Compliance. Documentation and Testing

Under the New COSO Framework. John Wiley & Sons: New Jersey.

Romney, M.B., Steinbart, P.J. (2018) Accounting Information Systems. (14th edition) Pearson:

Harlow.

Paper

Chan, D. Y., Vasarhelyi, M. A. (2011). Innovation and practice of continuous auditing.

International journal of accounting information systems 12 (2011) 152-160.

Norton, K. (2018). Exporting Risk. Risk Management, 65(6): 24-28.

Reports

Federal Office of Economics and Export Control, BAFA (2012). Internal Compliance

Programmes - ICP Internal Export Control Systems.

U.S. Department of Commerce, Bureau of Industry and Security (BIS) (2011). Compliance

Guidelines: How to Develop an Effective Export Management and Compliance Program and

Manual.

The Wassenaar Arrangement (2011). Best Practice Guidelines on Internal Compliance

Programmes for Dual-Use Goods and Technologies

Case

Ward, R.J., (2015), Prevent Diversions to forbidden Nations. Avoid Export Controls and

Sanctions Violations. Fraud Magazine, September/October: 24-29

Assessment

The exam will consist of open questions on (application of ) theory (50%) and a case with

questions relating to monitoring and auditing an Internal Compliance System (50%).


Books

Bartow JT, Biegelman MT (2012) Executive Roadmap to Fraud Prevention and Internal

Control. Creating a Culture of Compliance. John Wiley & Sons: New Jersey.

Spencer Pickett KH (2010) The Internal Auditing Handbook (3th Edition). John Wiley &

Sons: Chichester.

31

Papers

Burch, S. (2008) Auditing for Compliance. Internal Auditor, 65(6): 53-59.

Cederquist, J.G., Corin, R., Dekker, M.A.C., Etalle, S., den Hartog, J.I., Lenzini, G. (2007)

Audit-based compliance control. International Journal of Information Security 6(2):133-151.

Faudziah, H.F., Hasnah, H.,& Muhamed, J. (2005), Internal auditing practices and internal

control system. Managerial Auditing Journal, 20(8):844-866.

Hamilton, R.A. (1995) Compliance Auditing. Internal Auditor, 52(6):42-45.

Walker, C. (2014), Organizational Learning: The Role of Third Party Auditors in Building

Compliance and Enforcement Capability. International Journal of Auditing, 18: 213-222

Reports

ISO (2011). International Standard ISO 19011, Guidelines for Auditing Management

Systems

ISO (2014). International Standard ISO 19600, Compliance Management Systems

Guidelines

32

MODULE 7: RESEARCH METHODS FOR EXPORT CONTROLS


Course director: dr. Tom De Schryver

Lecturer(s): Prof. dr. Robert Beeres; Col. dr. Robert Bertrand; dr. Tom De Schryver; dr.

Andre Hoogstrate; prof. dr. Jeroen Klomp.

General objective

Based on the integration of scientific- and practice based knowledge, insight in research

methods and experience in the field, each CIIMT graduate is able to conduct research and

generate knowledge on trade compliance / export control of military and dual-use goods and

services – both independently and in cooperation with others.

Course objectives


1. distinguish differences and relations between interventions, applied and theoretical research;

2. obtain insights into various research designs and corresponding research techniques for

analysis;

3. obtain insights into selection criteria to decide which research design and corresponding

research techniques fits the problem;

4. formulate research goals and -questions to analyze a problem in the field of trade compliance

/ export control of military and dual-use goods and services;

5. operationalize the problem in terms of relevant research design and corresponding research

techniques;

6. motivate the selection of a particular research design and corresponding research techniques;

and

7. develop a research proposal.

Course description

RMEC introduces a number of research designs and -techniques for social sciences (applicable

to defence economics and export controls). These types will be explicitly related to problems

the student experiences in practice.

This course focuses on:

- role and function of research in (practical) problem solving;

- presentation of a step-by-step research design;

- a number of research designs and -techniques; and

- criteria to select a research design and -technique suited to investigate a given problem.

Students work on obtained insights and to this end, each student, during the preparation phase,

will produce a research proposal to study an trade compliance related problem. From the second

day in contact week students will be enabled to improve their research proposal. On day 3-5,

research proposals will be presented in class and reflected on by teaching staff and colleagues.


study load. Education is based on the preparation-feedback model. Group work will be

conducted with max 10 students per group.

Based on an attributed research design and/or -technique students are asked to come up with a

relevant problem to be researched according to this pre-set design and/or technique. In taking

this approach, students become aware of the scope and diversity of available designs and

33

techniques and, subsequently, during contact week will be confronted with research

implications that follow from the use of specific designs and techniques.

During preparation phase, students produce a research proposal consisting of the following

components:

(a) a synopsis of the research design and/or -technique underpinning the research proposal.

(b) an argumentation of the problem addressed by the proposal. In doing so, the focus is on the

student’s way to account for their selection in research typology to match research technique

and problem. In other words, the student is able to motivate why a specific problem will have

to be studied by using a specific research technique. The provided argumentation is to be

succinct and to the point.

(c) an elaboration on research causes and background; research objective (of and within);

research questions (both main question and sub-questions).

(d) an elaboration on the research design that is actually selected, containing a specification of

knowledge needed to find answers to the questions posed; a specification of the research design

and –techniques; a specification of the research plan, comprising the way ahead to achieve the

objective and a set-up of the research report.

Preparation Phase


1 Orientation on offered

research design and/or -

technique.

Bryman (2015); based on a

survey of methods literature

collect sources that will

contribute to gaining in-depth

knowledge

Orientation on offered research design and/or -

technique.

Report in writing on a synopsis of research design

and-technique underpinning the proposal

2 Orientation on fundamental

or applied research problem.

Bryman (2015); collect at

least one relevant journal

article.

Orientation on fundamental or applied research

problem

Report in writing on the research problem,

motivating and accounting for their selection, given

the pre-set research design and/or -technique

3 Orientation on objectives and

research questions

Bryman (2015); collect own

material

Orientation on purpose and research questions

report in writing on the research objective, main-

and sub-questions

4 Orientation on further

specification of research

design


material

Orientation on research design

Specify the additional need for knowledge to find

answers to the questions posed; a specification of

the research design and –techniques; a specification

of the research plan, comprising the way ahead to

achieve the objective and a set-up of the research

report

5 Orientation on research

proposal

Orientation on research proposal

34


material

Combine the previously delivered components in

step 1-4 into the research proposal and submit via

Moodle

Prepare a presentation on the own research

proposal as well as regarding the research proposal

they will be co-referencing.

Feedback Phase


Day 9:00-12:00 13:00-16:00

1 Research in context; structure of a research

proposal; the role of research designs.

Reflection on research designs and

criteria; interpretation of research

designs; criteria for research proposal;

case

2 Adapt and research proposal/presentations

3 See Feedback schedule 2 See Feedback schedule 2

4 See Feedback schedule 2 See Feedback schedule 2

5 See Feedback schedule 2 Finalize research proposal

Literature

Book Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Assessment

Research proposal (100%)

35

MODULE 8: MANAGING RELATIONSHIPS IN NON-COMPLIANCE

CONTEXTS


Course director: dr. Job Timmermans

Lecturer(s): dr. ir. Job Timmermans, prof. dr. Robert Beeres, Col. dr. Robert M.M. Bertrand

RA RC RO, prof. dr. Jeroen Klomp, dr. Erik de Waard, COL dr. Joop Voetelink LLM

General objective

The student understands, can elaborate and reflect on individual and organizational factors

that motivate and underpin compliant (ethical) and non-compliant (unethical) behavior. With

specific regard to organizations in the context of arms export control, attention will focus on

the consequences of (non-)compliant behavior. Amongst others, students will gain insight into

the proceedings and meaning of investigations into suspected trade law violation(s). Students

learn how to handle a non-compliance investigation from an internal and external perspective.

Course objectives


1. understand, explain and discuss individual-level factors that motivate (un)ethical / non-

compliant behavior;

2. understand, explain and discuss group and organizational-level factors that motivate

(un)ethical / non-compliant behavior;

3. design and implement a crisis management strategy, including appropriate internal control

measures;

4. evaluate processes, policies, and procedures that need to be in place to cope effectively

with a compliance related investigation.

5. understand the approach, mind-set, procedures, and tools of regulators in case of an

investigation.

6. design an effective and efficient way to recognize, prevent and/or detect specific types of

unethical (counterproductive) behavior.

Course description

This course studies the origins of (non-)compliant behavior in organizations in the field of

international trade in military- and dual use goods and services, the consequences for external

relations with stakeholders, (inter)organizational performance, (good)governance and

employee wellbeing and the regulatory mechanisms, available to compliance officers and

management at large, to manage both compliance and integrity in organizations. Although

non-compliant behavior cannot be considered a “wrong” per se, the theoretical basis

underpinning this course focuses on counterproductive workplace behavior (i.e, a broad set of

illegal, immoral, and/or deviant employee behaviors including offenses as employee theft,

fraud, or corruption). Against this background, students will study aspects of a compliance

officers role in non-compliance situations. Subjects include crisis management; internal

investigations; identifying individual-level, group and organizational-level causes; designing

and implementing the right control measures; communicating non-compliance with

regulators, government officials and other stakeholders. Guest lectures from the professional

field will share their experiences and several (court) cases will be analyzed. Students conclude

the course by producing a problem oriented policing guide that describes, analyzes, and

develops a plan to detect and/or prevent a specific type of counterproductive workplace

behavior relevant in the context of compliance and integrity in international military trade.

36



Preparation Phase

Week Subject Assignment(s)

1 Chapter 1 & 2 Elias (2013) Read: Tukamuhabwa (2012) & Braga (2008)

Chapter 1 & 2. Groups of two students select a non-

compliance/unethical behavior case from their

professional experience. Groups inform the lecturers

about the case you have selected by uploading a brief

description of the case (250 words) and a one-page

outline of their POP-guide (400- 500 words) (see the

assignment document for more details).

2 Chapter 3 & 4 Elias (2013) Read: Rendon & Rendon (2016), Erickson (2013).

Starting with phase one of their POP-guide, student

groups make an in-depth case description of the case

selected in week 1 (800 -1000 words).

3 Chapter 5 & 6 Elias (2013) Read: Wetter (2009) chapter 4, 5 & 6.

Building on week two’s scanning exercise of week 2,

student group go on in the POP process by

evaluating the processes, policies, and procedures

that need to be in place to cope effectively with a

compliance-related investigation (800-1000 words).

4 Chapter 7 & 8 Elias (2013) Read Onna et al (2014).

Building on the previous two steps, student groups

are tasked with searching for possible responses to

the non-compliant and/or unethical behavior. These

preferably should address short-term, ad-hoc and

long-term systemic responses.

5 Chapter 9 & 10 Elias

(2013)

Read Gottschalk (2017), Sherif et al (2016).

Finishing their POP guide, student-groups combine

the inputs of week 1-4 into a draft report consisting

of an introduction (250-400 words), followed by a

section for each of the three previous weeks. The

report should be concluded by a short section

reflecting on the process and contents of the case

analysis thus far (self-assessment) (300-500 words).

Feedback Phase


Day 9:00-12:00 13:00-16:00

1 Introduction, Counterproductive

workplace behavior (types, causes)

Problem oriented policing-theory,

macro-level origins of non-compliant

behavior.

2 Lecture on Crises management and

investigations

Crises management case/ guest speaker

3 Lecture on Non-compliant behavior and

organizational design

Non-compliant behavior and

organizational design Case/ guest

speaker

37

4 Lecture on internal/external investigations Lecture on internal/external

investigations- case / guest speaker

5 Workshop with student presentations & classroom discussions

Literature

Books

Braga, A. A. (2008). Problem-oriented policing and crime prevention (2nd ed). New York:

Willow Tree Press. (Chapters 1 and 2)

Elias, S.M. (2013) Deviant and criminal behavior in the workplace

Wetter, A. (2009) Enforcing European Union law on exports of dual-use goods (SIPRI

Research report No. 24). Oxford: Oxford University Press.

Papers

Erickson, J. L. (2013). Stopping the legal flow of weapons: Compliance with arms embargoes,

1981–2004. Journal of Peace Research, 50(2), 159–174.

Goldsmith, M., & King, C. W. (1997). Policing corporate crime: The dilemma of internal

compliance programs. Van der Bilt Law Review 50(1), 3-47.

Gottschalk, P. (2017). Maturity levels for private internal investigations: The case of fraud

examinations. International Journal of Police Science & Management, 19(4), 285–293.

van Onna, J. H. R., van der Geest, V. R., Huisman, W., & Denkers, A. J. M. (2014). Criminal

Trajectories of White-collar Offenders. Journal of Research in Crime and Delinquency, 51(6),

759–784.

Rendon, J. M., & Rendon, R. G. (2016). Procurement fraud in the US Department of Defense:

Implications for contracting processes and internal controls. Managerial Auditing Journal,

31(6/7), 748–767.

Sherif, K., Pitre, R., & Kamara, M. (2016). Why do information system controls fail to

prevent unethical behavior? VINE Journal of Information and Knowledge Management

Systems, 46(2), 251–266.

Tukamuhabwa, B. R. (2012). Antecedents and consequences of public procurement non-

compliance behavior. Journal of Economics and Behavioral studies, 4(1), 34-46.


Special issue: Counterproductive behaviors in organizationshttps

Special issue: The dark side of organizations

Assessment

Assessment of the course is based on the delivering of POP-guide report by groups of 2

students (80%) and presenting of one stage of the POP guide by a 2 person group , and

leading one discussion of fellow groups (20%).

38

MODULE 9: INTEGRATION PROJECT RELATED TO ASPECTS OF ICP IN

BUSINESS ENVIRONMENTS


Course director: Prof. dr. Robert Beeres

Lecturer(s): Prof. dr. Robert Beeres; Col dr. Robert Bertrand RA RC RO; prof. dr Jeroen

Klomp; prof. dr Eric-Hans Kramer; dr. Job Timmermans; dr. Tom De Schryver; Col. dr. mr.

Joop Voetelink; dr. Erik de Waard.

General objective

The student is able to use state of the art scientific knowledge and new insights to analyze the

need for an effective and efficient Internal Compliance Program (ICP) and is able to design an

ICP based upon a real-life case.

Course objectives

The student is able to:

1. use state of the art scientific knowledge and new insights to understand relevant managerial

themes and questions regarding export control of international trade in military and dual use

goods and services;

2. compose and analyze an organizational compliance risk profile and, accordingly, to define

adequate internal controls and safeguarding measures;

3. define system requirements for a compliance program depending on particular

organizational contexts;

4. (re)design a compliance program adequate for the specific requirements of an organization;

5. abstract, analyze, structure and relate complex data into relevant information to identify

underlying core questions and themes to gain an overall picture;

6. communicate ideas, perspectives and findings, both orally and in writing within the

professional field.

Course description

During the course students, individually, engage in applied research on (one of) the Internal

Compliance Program(s) at their workplace. The emphasis is on organization diagnosis and re-

design to improve, innovate or even to develop this particular ICP. Students will conduct their

research from an interdisciplinary and practice-oriented perspective.

Key elements of an ICP to be taken into consideration, include:

1. levels of commitment to compliance (i.e., commitment from senior management to comply

with (inter)national export controls);

2. organizational structure and (division of) responsibility/accountability (e.g., designation of

a senior organization member to ensure implementation and maintenance of the ICP);

3. applicability/feasibility/awareness of export screening procedures (i.e., an overview of

detailing company compliance policies and procedures);

4. (Facilities and policies regarding) training & education (i.e., training, courses etc. provided

to employees dealing with different aspects of processing exports; including e.g., granted

study time);

5. Screenings of all aspects of dual-use goods or services for export (i.e., products, end users

and end-use);

6. Record keeping (i.e., adhering to national export control legislation record keeping

requirements);

39

7. Established policies, procedures and rules for conduct regarding internal audits and

compliance monitoring;

8. Established policies, procedures and rules for conduct regarding handling and resolving

compliance problems and violations.

During this module students will diagnose and (re)design (part of) their own organization’s

ICP. To this end, students will 1) select 3-5 key elements to focus on; 2) select appropriate

literature offered in previous modules underpinning their decisions; and 3) motivate choices

made under 1) and 2).

During the preparation phase students will work independently on their diagnosis and

(re)design according to the key elements of their choice. This will result in a paper to be

submitted to the supervisor in week 5 (see assessment requirements). During the contact

week (feedback phase) students will individually present their diagnosis and (re)design of the

ICP and defend their decisions and judgements in class in an in-depth discussion. Each

student will be allowed 30 minutes for presentation followed by 30 minutes for discussion.

Based on the feedback from this discussion students will adapt their diagnosis and (re)design.

Module structure and method The module is conducted at level 600 and amounts to 5 ECTS. 1 ECTS equals 28 hours of


Preparation Phase


1 Introduction,

coordination and

consultation

During the first week the student prepares (1) a motivation

underlying, (2) his/her actual selection of key ICP

element(s), (3) central question of the paper, (4) the choice

of theoretical perspectives preferable based on a reflection

on the importance of theories learned during previous

modules for their own organization to be used for the

diagnosis and (re-)design of the real-life ICP, and (5)

consults the supervisor for feedback by as soon as possible.

Students also inform their supervisor on communications

and consultations with workplace staff. At the end of the

week the students reports by writing the first concept on the

introduction of the paper.

2 Theoretical

framwork

During the second week of the independent learning phase

and, based from a coherent elaboration on theoretical

perspectives, the student develops a set of

criteria/requirements regarding diagnosis and re-design of

selected key ICP element(s). Based on this elaboration, the

student may wish to adjust the paper's previous introduction.

At the end of this week, the student reports in writing on

both the introduction and the theoretical framework.

3 Methodology During the third week of the independent learning phase, the

student operationalizes the set of criteria/requirements. For

each criterion/requirement, the student specifies what data

sources and methodologies are required to obtain

information on the ICP diagnosis and re-design. Based on

new insights obtained over the week, the student may wish

40

to adjust previous products. At the end of the week each

student reports in writing on both the introduction, the

theoretical framework and the methodology.

4 Results During the fourth week of the independent learning phase,

the student elaborates in writing on results regarding the

diagnosis. At the end of this week the student reports in

writing on the progress made

5 Conclusion and

recommandations

During the last week of the independent learning phase each

student assembles the previously delivered products of week

1-4, adding the conclusion(s) and recommendations to

improve on the selected key ICP element(s). The student

submits this concept diagnosis and (re)design to the

supervisor.

Feedback Phase


Day 9:00-12:00 13:00-16:00

1 Student presentations Student presentations




5 Student presentations Student presentations; final moment to

submit the definite diagnosis and

(re)design

Literature All literature from preceding modules

Assessment

Paper: diagnosis and (re)design of ICP (70%)

Presentation (30%)

41

MODULE 10: MASTER THESIS


Course director: Prof. dr. Robert Beeres and drs. Koen Smetsers

Lecturer(s): Prof. dr. Robert Beeres; Col dr. Robert Bertrand RA RC RO; prof. dr. Jeroen

Klomp; prof. dr. Eric-Hans Kramer; dr. Job Timmermans; dr. Tom De Schryver; dr. Erik de

Waard.

General objective

The student is able to generate new academic insights and to carry out independent theoretical

or applied scientific research within the interdisciplinary domain of Compliance and Integrity

in (Inter)national Military Trade, including export control of military / dual-use goods and

services.

Course objectives


1. formulate a research problem, a conceptual design as well as a conceptual model and to

gather literature;

2. make responsible and well-argued theoretical and methodological choices;

3. formulate a research design (i.e., select relevant empirical research strategies, data

collection and –analysis methods);

4. apply both qualitative and quantitative methods and techniques for data collection and -

analysis;

5. write consistent and coherent research reports; and

6. reflect critically on theoretical, methodological and empirical decisions.

Course description

The master's thesis is the final test of academic skills and the culmination of the CIIMT

program. From the thesis, it becomes clear that students have mastered CIIMT’s intended

learning outcomes, internalized these and made them their own to apply. This appears from

the student's:

1. knowledge, understanding and skills in relation to his/her specific field of study;

2. theoretical and methodological insights into the field;

3. capabilities to apply these insights independently;

4. capabilities to carry out research according to academic standards and of developing his

own perspective on the materials studied.

Based on the above, the student

5. can be expected to continue to contribute to the generation of new academic insights and to

carry out independent research.

Before starting the actual thesis research and writing, students develop their own individual

research proposal (IRP). This IRP encompasses the conceptual design, conceptual model and

a research design and will be produced during the preparation phase. Next, during the first

three days of the contact week, in feedback rounds, IRPs will be discussed and commented

upon in groups of four students, supervised by an experienced researcher. On the fourth day

of contact week, discussion focuses on the way ahead concerning actions to be undertaken by

the students regarding the literature framework and the planning of data collection, and –

analysis. On the last day of contact week, students are thus able to submit an IRP that is

relevant, effective and feasible. Last, as to feedback on intermediate milestones, during the

thesis process student and supervisor make separate appointments to discuss chapter 1

42

introduction, chapter 2 theory, chapter 3 methodology, chapter 4 results and chapter 5

discussion and conclusion.



Preparation Phase


1 Conceptual design

I: Motivation and

relevance research

The student, by presenting background, context and

contributory causes to the research problem at hand,

motivates the relevance of the study he/she aims to conduct

2 Conceptual design

II: Problem

definition

The student applies the outcomes of conceptual design I to

formulate a research objective, research questions and, based

on a preliminary literature study, elaborates on the

conceptual model by adding the expected usefulness of the

findings (relevance)

3 Conceptual model Based on more elaborate literature review, the research

objective(s) and –questions will be enhanced

4 Research design Based on the conceptual design and –model, the student

formulates a research design, preferably, encompassing a

mixed methods approach

5 Individual research

proposal (IRP)

The student submits the IRP to the supervisor

Feedback Phase I: Individual Research Proposal


Day 9:00-12:00 13:00-16:00

1 Conceptual design

Presentation and discussion of conceptual

design. Objectives: identification of

objectives of/within the study. Feedback

on effective and efficient questioning

Conceptual design

Rewrite conceptual design, review

implications for the conceptual model

and research design

2 Conceptual model

Presentation and discussion of the

conceptual model

Conceptual model


implication for the conceptual model

and research design

3 Research design

Presentation and discussion of the

research design

Research design


implication for the conceptual model

and research design

4 Follow up

Way ahead: Literature study; plan for data

collection and analysis

IRP

Prepare definite IRP

5 IRP IRP

43

Prepare definite IRP Submit definite IRP and detailed

research plan regarding follow-up

thesis process

Feedback Phase II: Master Thesis


Day 9:00-12:00 13:00-16:00

Dependent on research plan; Maximum of 5 face-to-face sessions (may be

conducted on-line); deadline to submit thesis report is fixed and known to student

and supervisor(s)

Literature - The thesis portal in Moodle offers the CIIMT thesis guide 2019-2021. This guide explains

regulations and policies regarding the thesis process as well as the assessment rubrics.

- All literature from preceding modules, in particular module 7 Research methods.

- Additional literature depends on choices made in the definite IRP and further arrangements

(to be kept) between the supervisor(s) and the student.

Assessment

Thesis (100%). See the assessment form in CIIMT thesis guide 2019-2021.

Date post:	04-Aug-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

STUDY GUIDE Compliance and Integrity in International ... · human rights, international order and...

Documents