The Compliance Officer: Preacher, Salesman, Coach, or Cop?

1. The Compliance Officer: Preacher, Salesman, Coach, or Cop? David B. Crawford, CIA, CCSA Justina A. Crawford, MA, BME JDEnterprises crawfordjd@earthlink.net

2. Topics • What is Compliance and How Does It Fit in the Overall Organizational Picture • Defining the Compliance Officer • Duties and Responsibilities • Management Expectations • Skills Needed • Professional Recognition • Preacher, Salesman, Coach or Cop?

3. What Is Compliance? The process of meeting • the expectations of external stakeholders who grant us money, pay for our services, regulate our industry, etc. (SCCE), and • the internal expectations of the organization

4. Compliance as a Component of Enterprise Risk Management • Compliance is one of the four categories of objectives of an organization as expressed in the COSO ERM Framework (along with strategic, operational, and reporting) • Deals with boundary risks • Mandatory • Voluntary • Depends on Organizational Culture

5. Compliance in the GRC World(Governance, Risk Management, & Compliance) • Governance • power to authorize a business strategy and model to achieve objectives • set and evaluate performance against objectives • Risk Management • identify and address risks that the organization will step outside of mandated and voluntary boundaries • identify, assess & address potential obstacles to achieving objectives • Compliance • proactively encourage & require compliance with established policies & boundaries • detect noncompliance and respond accordingly • Culture • establish an organizational climate & mindsets of individuals that promote ethical behavior, trust, integrity & accountability

6. 4 OBSTACLES 6 2 BUSINESS MODEL 1 5 6 3 VOLUNTARY BOUNDARY Selected by management, including public commitments, contractual obligations, organizational culture, policies and procedures Fraud, Natural Disasters. Competition, Economy, Politics, Capital & Labor Availability OBJECTIVES Strategic, Operational, Reporting, Compliance Strategy,People, Processes, Technology, Infrastructure MANDATORY BOUNDARY Established by external forces including laws, government regulations, and other mandates

7. Defining the Compliance Officer • Duties and responsibilities • Management expectations • Skills needed • Professional recognition.

8. Duties & Responsibilities • Make compliance a part of everyday activities in the organization • Oversee various aspects of the compliance program • Communicate with the CEO and executive management on the operation of the compliance program • What is NOT INCLUDED

9. Make Compliance a Part of Operations • Monitor and ensure Action Plan implementation • Establish an infrastructure for managing compliance holistically including • An awareness program, tools and methodology for risk assessments, monitoring activities, and reporting • A centralized compliance team to provide support and guidance • Establish communication avenues • General Compliance Training, Specialized Training, Confidential Reporting Mechanism

10. Oversee Compliance Program Activities • Manage the confidential reporting activity • Verify compliance information reported by line managers (responsible parties) • Certifications, Inspections, Testing, Peer Reviews

11. Communicate with Chief Executive Officer & Board • Summary of compliance activities • Compliance issues that require executive action • Compliance issues that have organization-wide impact • Confidential reporting mechanism activity

12. NOT A DUTY of the COMPLIANCE OFFICER • Establishment of the Boundaries • Enforcement of the Boundaries

13. Management Expectations • Be a catalyst for the creation of a culture of ethics and compliance • Provide a safety valve for employees • Minimize surprises

14. Compliance Officer Skills Set • Knowledge of the organization • Cultural, Legal & Contractual, Internal Policies & Procedures • Communication Skills • Facilitation, Negotiation, Listening, Team Dynamics • Personal Values • Integrity, Trust, “Walk the Talk”

15. Professional Status • Body of Knowledge • Transportability of Expertise • Professional Organizations

16. Body of Knowledge • OCEG Standards • Periodicals • Compliance Week, Internal Auditor, Ethikos • Industry Organizations • HCCA, Annual Conference on Effective Compliance Programs in Higher Education, University Compliance Group

17. OCEG • Guidelines and Standards • Legal Requirements and Process guidelines (high-level, detailed & technical) to meet them • Evaluation Criteria and Benchmarks • Measure effectiveness (design & operations) & performance • Community of Practice • On-line tools, resources & collaboration • Research groups and discussion forums

18. Transportability of Expertise • Higher Education • Commercial Organizations • Consulting

19. Professional Organizations • Ethics and Compliance Officers Association • The Standards of Conduct • Responsibilities to My Employing Organization • Responsibilities to the Profession • Society for Corporate Compliance & Ethics • SCCE exists to champion ethical practice and compliance standards in all organizations and to provide the necessary resources for compliance professionals and others who share these principles

20. Society for Corporate Compliance & EthicsCertified Compliance & Ethics Professional (CCEP) • Body of Knowledge • Education and Experience • Character and Integrity • Examination • Continuing Education and Renewal of Certificate

21. Compliance Officer:Preacher, Salesman, Coach or Cop? • Preacher • Salesman

22. Compliance Officer:Preacher, Salesman, Coach or Cop? • Coach • Cop

23. Websites • OCEG www.oceg.org • SCCE www.corporatecomliance.org • ECOA www.theecoa.org • COSO www.coso.org • Compliance Week www.complianceweek.com • Ethikos www.singerpubs.com/ethikos • Internal Auditor www.theiia.org/periodicals