RFG PPT brand template - Updated March 17 · 5 Key trends in 2019 1 Compliance is a business issue not a legal one 2 Certify your compliance programme 3 Supply chain compliance is

www.redflaggroup.com

June, 2019

Compliance trends every CCO needs to take into consideration today

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Introductions

YOUR HOST

Scott LaneCEO and ChairmanThe Red Flag Group®

About The Red Flag Group®

The Red Flag Group® is a business

intelligence and technology firm

that helps clients make better

decisions by selecting better

business partners, employees,

suppliers and customers.

Andrew HendersonVice President, ProductsThe Red Flag Group®

www.redflaggroup.comwww.redflaggroup.com

5 Key trends in 2019

1Compliance is a business issue not

a legal one

2 Certify your compliance programme

3 Supply chain compliance is huge

5

Reassess your due diligence and

sales channel onboarding4

New hotline solutions for 2019


COMPLIANCE IS A BUSINESS ISSUE NOT

A LEGAL ONE


The historical view

of compliance is

changing▪ There is a deep change in the industry where

compliance was an island surrounded by legal

and finance

▪ Compliance is now heavily engaged in the

business and often reports to the business as

well as to a functional role

▪ The type of people being hired into a

Compliance role are from more varied

backgrounds – not just legal backgrounds


Examples of major changes

in the development of compliance

Compliance goals are directly tied

to the business goals and not

strictly ‘compliance goals’ that are

separate from the business

Compliance initiatives are tied

to the business not tied to law

or regulations

Substance over Form is being applied

more often across the industry – less of

‘compliance for compliance sake’

The concept of the compliance risk

assessment is being viewed within the

lens of the business, not within the lens

of the legal department

EXAMPLES


Reconsider your goals for the year

Question whether your initiatives are

adding value to the business

Are you being reactive or proactive?

Are you focused on simplification and

efficiency in your compliance

programmes?

Are you measuring success based on

your contribution to the business

CALL TO

ACTION… 1

2

3

4

5


CERTIFYYOUR COMPLIANCE

PROGRAMME


Compliance leaders are

beginning to understand

the business value of

certifying compliance

programmes

Certified companies are more

likely to prevent issues and

are able to handle

issues more efficiently

when issues arise

Being certified shows a

commitment to compliance

and integrity and supports

a level of independent audit

to your programme

CERTIFICATIONS ARE INCREASING

thanks to new Standards

being introduced


Anti-Bribery certificationsare just the start of a major

industry development

The ISO 37001 Standard

for Anti-Bribery

Management Systems is

now in force and

companies are able to be

certified by an ISO

accredited certification

body

More Standards are due to

be released by ISO in the

next two years including

one related to general

compliance programs (ISO

19600 successor) and also

for whistle blower

programmes

It seems clear that

companies are starting

to look at certifying

their programmes as

their major customers

are demanding it


Prove to your business teams that you have built a

world-class compliance management system

Get ready to answer the demands from your key

customers that you be certified

Prove to regulators that your certification is a key part of

your adequate procedures

Getting certified shows the business that you are

credible, safe and have a benchmarked program

Show regulators that you should be given a break when

issues happen due to your commitment to a certification

A certification under ISO 37001 adds value


Contact us to get an inexpensive ETHIC

Intelligence ISO 37001 Quickstart™ to get

a budget, scope and basic guideline

towards becoming certified

Buy an ETHIC Intelligence ISO 37001

Readiness Assessment to get focused on

where the gaps are in your programme

before starting the certification process

Get Certified for Compliance® with a

ETHIC Intelligence ISO 37001 Certification

CALL TO

ACTION…1

2

3


SUPPLY CHAIN COMPLIANCE IS HUGE


Procurement and sourcing

teams are starting to

think about supply

chain risks ▪ Procurement and supply chain professionals are

starting to think more about integrity and other

supply chain onboarding risks

▪ Procurement teams are beginning to

understand the business value of compliance in

the on-boarding of new suppliers

▪ Attaining training in compliance and starting to

understand their role in compliance, integrity

and related risks


Supplier risks are

broad, challenging

to detect and

most likely

A DANGER TO YOUR REPUTATION

▪ The classic risks like ‘corruption’ are not likely

to be in all your supply chain, although they

do exist in some key supply chain areas

▪ Other emerging risks like export controls,

sanctions, human right, human trafficking,

and ‘CSR’ type risks are becoming more

commonly known and need to be managed

▪ Other reputation driven risks are also

increasing and causing challenges to

procurement teams to manage effectively

▪ Laws and regulations globally are pushing

these obligations onto companies to

manage your supply chain.


Procurement and supply

chain teams need support

and training to implement

a supply chain integrity

onboarding programme

Specific supply chain and

supplier integrity software is

now available specifically

to address supply chain

integrity risks

Specific due diligence is

now available tailored to

address the risks in the

supply chain.

More work needs to be done to

support the PROCUREMENT AND

SUPPLY CHAIN TEAMS


Conduct a gap analysis of your supplier

onboarding and due diligence process

Demo our Supplier Integrity® | Supplier

Onboarding Platform which addresses

many of the risks raised in this session

Think about how to support the

procurement teams in conducting due

diligence and other onboarding of key

suppliers with detailed background checks

with IntegraCheck® due diligence reports

and IntegraWatch® database solutions

CALL TO

ACTION… 1

2

3


REASSESS YOUR RISK BASED DUE DILIGENCE ON

SALES CHANNELS


Better understanding of

SCREENING VS DUE DILIGENCE

Better understanding that screening is

more of a database check while due

diligence is a deep dive background check

Clear definitions helping businesses to

decide the level of due diligence

requirements based on their risk exposure

General understanding that effective risk

detection and management involves a

combination of database checks and deep

dive due diligence


Repeating due diligence

EVERY TWO YEARS is becoming standard

Better understanding

that screening is more

of a database check

while due diligence is a

deep dive background

check

Repeating due diligence

on a regular intervals is

becoming a standard

and considered as good

business practice

Repeating due diligence is

ensuring compliance with

international requirements

as suggested by DOJ/SEC,

OECD and UK Serious

Fraud Office


Reconsider your

onboarding practices for

SALES CHANNELS

Reconsider your onboarding system to see if

it is truly value added and fit for purpose

▪ Do you have a paper system or platform?

▪ Is your scoring accurate?

▪ How long does it take to onboard?

▪ Do your questionnaires make sense?

▪ Are you actually managing the red flags that come from the due

diligence reports?

▪ Is your screening solution producing too many false positives?

New trends to use Salesforce and CRM’s with

plug-ins for due diligence and screening


Conduct us for a gap analysis of your due diligence

and onboarding programs and see how you stack

up against best practices

Demo ComplianceDesktop® as an onboarding

platform for third parties

Contact us to get complimentary examples of our

due diligence products, IntegraCheck® and

IntegraWatch®

Contact is to see our new plug in to Salesforce.com

CRM which allows the onboarding process to be

put back into the hands of the business

CALL TO

ACTION…1

2

3

4


RESTART YOUR HOTLINE


Reconsider your hotline

GET BETTER SERVICESAVE MONEY

Reconsider your hotline to see if it is

truly value added and fit for purpose

▪ Do you have a native App?

▪ Can your employees and outside parties use the App?

▪ Does it operate in over 100 languages?

▪ Can you also use voice systems and web as well?

▪ Is your case management system effective and

operating?

Get an AI- driven system that truly

brings your hotline into the Year 2019.


CALL TO

ACTION…

Get a full demo of our hotline

solutions, called IntegraCall®

and save up to 75% on your

current provider for a far

better solution


Please let us know what The Red Flag Group® can help you with

ISO 37001 Certification

and readiness

assessment A

B

Risk based due diligence

on third parties C

Help me assess/restart

my company’s

compliance hotlineD

Help me explore the

benefits of the

Supplier Integrity®

POLL QUESTION

More information?


Questions?Questions?


CONTACT USTo find out more about our products and services,

please visit www.redflaggroup.com or

contact us at [email protected]

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RFG PPT brand template - Updated March 17 · 5 Key trends in 2019 1 Compliance is a business issue not a legal one 2 Certify your compliance programme 3 Supply chain compliance is