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| Article - Abstract. To view full article click on the article title. | |
Corporate Compliance: Risk Analysis in 3 Dimensions (Ethikos) Corporate Compliance: Risk Analysis in 3 Dimensions (Ethikos) September/October 2000 - By Jeffrey M. Kaplan. Thinking Inside The Box: Risk Analysis In Three Dimensions Among the many path-breaking aspects of the corporate Sentencing Guidelines’ articulation of effective compliance programs is the emphasis on systematic, prospective risk analysis.Prior to the Guidelines, internal compliance efforts often had a largely retrospective character. For example, after the well-known prosecutions of electrical contractors in the 1960s for price fixing, many firms developed compliance efforts aimed primarily at the antitrust area. Similarly, the foreign corrupt payment scandals of the 1970s led to compliance efforts devoted to this field of law, and the insider trading and government procurement fraud cases of the 1980s had a similar important but limited impact on the development of policies and procedures. Like the French government building the Maginot Line (the famously unsuccessful World War II strategy which used World War I type defenses), the approach in each of these instances was effective only to defend against the dangers of the past.A need to review risksThe Guidelines "step one," however, requires compliance efforts to be tailored to the particular risks a non-compliant company faces, an unquestionably future looking formulation. Similarly, virtually all articulations of effective compliance programs by government agencies since the Guidelines implicitly or explicitly require an effort by companies to review risks in a meaningful way.But neither the Guidelines nor any other pronouncement provides much guidance on how a company should go about the critical task of risk analysis. That is the topic of this article.Two analyses with one reviewThe first thing that should be said about risk analysis is that the process allows one to undertake a review that is equally important to the development of a compliance program: that is, inventorying existing compliance mechanisms.For those who have worked in this field for any length of time, the following experience has become commonplace. Full Article: http://www.singerpubs.com/ethikos/html/compliancerisk.html |
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2006 Ethics-Governance.com |
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