Jan. 22, 2020

The Anti-Corruption Report’s Guide to Risk Assessments: Wrapping Up and Avoiding Pitfalls

Performing a risk assessment is a complicated process that requires planning up front and significant resources to execute, but it is on the back end where the real value of the assessment is revealed. Once areas of risk are identified and ranked, the risk assessors must draft a report, share their findings with management, formulate an action plan and follow up to make sure those recommendations are implemented. In this final installment of the Anti-Corruption Report’s Guide to Risk Assessments, we take a close look at the dénouement of a risk assessment and highlight three strategies for avoiding pitfalls during the process. See the first three parts in our guide to risk assessments: “Types of Assessments” (Jun. 26, 2019); “Techniques and Building a Team” (Aug. 7, 2019); and “Where to Look for Risk and Risk Ranking” (Sep. 4, 2019).

How Avon Made Its Unique Monitorship a Positive Experience

For many companies, the prospect of hiring a compliance monitor is one of the scariest elements of negotiating a settlement with U.S. anti-corruption enforcers. Avon Products Inc. (Avon) faced that fear when it entered into a settlement with both the DOJ and SEC in late 2014, but through its significant remediation efforts was able to limit its monitorship to just 18 months, with an additional 18 months of self-reporting. Earlier this month, Avon was acquired by Natura & Co., the owner of The Body Shop and Aesop, creating the fourth largest pure-play beauty company in the world. The Anti-Corruption Report recently spoke with Richard Davies, Avon’s chief compliance officer, about navigating the monitoring, self-reporting and post-monitorship period. In the first part of this two-part series, Davies discusses the company’s remediation efforts, how it learned from its monitor and how the self-reporting period served as a useful transition between the pre- and post-monitorship periods. In the second part, he discusses life after the monitoring period and the opportunity to innovate the program as part of Avon’s ‘Open Up’ turnaround strategy and move ahead after its acquisition. See “Adelle Elia of LBI Offers Insights on Working Effectively With a Monitor” (Jul. 24, 2019).

Mani Pulite, Lava Jato and the Road Ahead for Anti-Corruption Efforts in Brazil

When Sergio Moro, the former lead judge dealing with corruption cases stemming from Operation Lava Jato (Car Wash) in Brazil, took a role in the government of President Jair Bolsonaro, many worried that it was the end of Brazil’s push to root out corruption. In a guest article, Hogan Lovells partner Rafael Ribeiro suggests that those fears may be exaggerated. Drawing comparisons to Italy’s Mani Pulite corruption scandal from the 1990s, Ribeiro explains how popular perceptions of anti-corruption efforts often show a pattern of embrace followed by disillusionment, and suggests how Brazil can continue to move ahead. See “Anti-Corruption Is Front and Center for Recently Elected Presidents in Latin America” (Nov. 28, 2018).

How Anti-Corruption and Antitrust Enforcement Align

In today’s global and complex economy, corporate conduct that violates anti-corruption laws may also be a criminal antitrust violation. This guest article by BakerHostetler attorneys Jeffrey Martino and Sonny Carpenter, and law clerk Audrey van Duyn identifies common intersections of anti-competitive and corrupt conduct, discusses the proliferation of antitrust and anti-corruption enforcement around the world, summarizes the recent developments in the DOJ’s antitrust and FCPA policies, and analyzes the important differences among the policies regarding issues such as self-reporting. See Why International Companies Are Integrating the ECCP Into Their Compliance Programs” (Jun. 12, 2019).

Quick Look at 2019 Policy Changes

In a recent speech, Assistant Attorney General Brian Benczkowski explained that one of his goals is to build companies’ trust in the government’s investigation and resolution process. To achieve that goal, the DOJ has attempted to increase transparency by revising policies to better reflect actual practices and publishing guidance for prosecutors on how to approach these cases. Other enforcers, such as the U.K. Serious Fraud Office and the AFA in France, have joined in as well. Here is a quick look at some of the policy tweaks, changes and guidance that were announced in 2019 by the DOJ, CFTC, AFA and SFO. See “Quick Look at Recent DOJ Policy Changes” (Feb. 20, 2019).

Former Deputy Attorney General Rod Rosenstein Joins King & Spalding

At the DOJ, Rosenstein oversaw the revision of policies concerning corporate criminal prosecutions and parallel domestic and foreign investigations, FCPA matters and health care fraud cases.  For more from King & Spalding, see “DOJ Pursuit of Individuals for Corruption in Venezuela Highlights Risk of Doing Business There” (Sep. 18, 2019).

Former Deputy AAG Matthew Miner Returns to Morgan Lewis in Washington, D.C.

Miner’s practice focuses on matters relating to white collar enforcement and compliance, the FCPA, crisis management, congressional inquiries and internal investigations. For more from Morgan Lewis, see “Rolls Settlement Illuminates SFO Expectations for Cooperation and Compliance” (Mar. 15, 2017).

Kaplan Hecker & Fink Welcomes Former Criminal Division Chief of Staff As Partner in NY

Marshall Miller focuses on helping clients navigate internal investigations, whistleblower complaints, data breaches, regulatory challenges, and government enforcement actions and prosecutions. He joins Kaplan Hecker from Wachtell and previously was the Principal Deputy Assistant Attorney General & Chief of Staff at the DOJ’s Criminal Division. For more on the firm, see “Kaplan Hecker & Fink Announces Rebrand With Addition of Managing Partner” (Jul. 11, 2018).