Eric often encounters three myths that organizations believe when considering the liability they may face because of third-party partners’ or agents’ conduct. In this episode, Eric explains why believing these myths creates liability risks for your company.
Myth No. 1: Many people believe that third-party compliance is only anti-corruption, anti-bribery, and/or potential Federal Corrupt Practices Act (FCPA) violations. Your risks, however, are much broader than just those three risk areas. Eric explains why you should be concerned about your third-party agents’ or partners’ compliance in many other risk areas.
Myth No. 2: Many organizations believe that if they are operating purely domestically and don’t conduct any business overseas, they don’t have third-party compliance concerns. It is important to realize that if your third-party agent is working overseas, you may have liability related to the third-party’s conduct overseas. Eric looks at some risk areas that you may not realize you face from third-party’s conduct overseas and how you can protect yourself from those risks.
Myth No. 3: You can rely on a third-party’s compliance program to protect your organization from liability resulting from the third-party’s conduct. Many people recognize that smaller organizations that don’t have as robust a compliance program can present a greater liability risk that larger organizations that have robust compliance program. No matter how extensive a third-party’s compliance program may be, you still face risk. Eric discusses the settlements of FCPA violations related to Panelpina World Transport Ltd., a large publicly trade, multinational corporation. In these cases, many organizations faced liability due to Panelpina’s conduct overseas. Eric explores what this means for your reliance on a third-party’s compliance program.
Eric Feldman is the Senior Vice President, Managing Director, Corporate Ethics and Compliance at Affiliated Monitors. Eric retired from the CIA in 2011 with over 32 years of experience in Inspector General oversight and federal auditing in the executive and legislative branches of government. He has served in executive positions with Offices of Inspector General at the Department of Defense, Defense Intelligence Agency, and CIA, and was the longest serving Inspector General of the National Reconnaissance Office (NRO) from 2003-2009. At the NRO, he presided over a highly successful procurement fraud prevention and detection program, widely recognized by the Department of Justice as a model throughout the federal government. Eric is a sought-after speaker in the field of compliance and ethics. Eric’s background and experience give him unique insight into the importance of corporate culture and the future of compliance and ethics. In this interview, Eric’s discussion goes far beyond the three questions, discussing issues that range from recent newsworthy compliance failures to the future of compliance and ethics.
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