The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Data Analytics

  • From Vol. 7 No.21 (Oct. 17, 2018)

    Lessons From AB InBev’s Data Analytics Program: The Future is BRIGHT, and the Future Is Now

    Though the concept of data analytics often piques the interest of compliance officers, integrating a comprehensive system into a compliance program can be daunting. In this guest article, Matt Galvin, the vice president for ethics and compliance at beverage giant AB InBev, explains what the company learned from its experience developing and implementing BREWRight, a data analytics program that he argues has vastly improved the company’s compliance functions, and that has the potential for even more impressive results in the future. See “Using Data Analytics to Boost Compliance Program Effectiveness” (Jun. 27, 2018).

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  • From Vol. 7 No.16 (Aug. 8, 2018)

    Ian Hawkins of NBCUniversal Talks Tools for Building a Modern Compliance Program

    As the focus of many compliance departments shifts toward values and away from rules, compliance officers face new challenges. Ian Hawkins, director of international compliance at NBCUniversal, spoke with The Anti-Corruption Report about values- versus rules-based programs, obtaining buy-in from leadership, using artificial intelligence and data analytics to enhance a program and the changing composition of compliance departments. In a companion article, we spoke to Hawkins about how compliance officers can integrate nudge theory into their programs to encourage ethical decision-making. See “Finding the Softer Side: VMware’s Senior Director of Ethics and Compliance Discusses Her Department’s ‘Re-Brand’” (Jan. 24, 2018).

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  • From Vol. 7 No.13 (Jun. 27, 2018)

    Using Data Analytics to Boost Compliance Program Effectiveness

    Data analytics is becoming a critical component of FCPA compliance. Unfortunately, like other fields that involve math, many lawyers find it beyond their skill set, according to Richard W. Grime, a partner at Gibson Dunn, while moderating a recent PLI program on maximizing the use of data in compliance programs. However, lawyers must become familiar and comfortable with analyzing data if they are going to be doing any FCPA compliance work, he said. The speakers on the panel also included Hui Chen, an independent ethics and compliance consultant and former DOJ compliance counsel; Sulaksh R. Shah, a partner at PwC; and Zachary N. Coseglia, assistant general counsel and head of global compliance monitoring and analytics at Pfizer Inc. See our four-part series on measuring compliance: “Getting Started” (Aug. 2, 2017); “Seven Areas of Compliance to Measure” (Aug. 16, 2017); “How to Measure Quality” (Sep. 6, 2017); and “Gathering and Analyzing Data” (Sep. 20, 2017).

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  • From Vol. 6 No.15 (Aug. 2, 2017)

    Measuring Compliance: Getting Started (Part One of Four)

    While most companies have established some sort of compliance program, measuring its effectiveness can be challenging. Collecting data is clearly an important part of that process, but questions remain as to what data to collect, how to collect it and how to analyze it. “When companies think about data, they automatically assume it is something very sophisticated, but it isn’t – it’s just asking how many, how much and why?” Hui Chen, former compliance counsel to the DOJ’s Fraud Section, told The Anti-Corruption Report. In this first article in a multi-part series, we discuss why companies should be measuring their compliance programs and the steps they should take to get started. The following articles will suggest some specific areas of compliance a company could consider tracking and measuring, and discuss the challenges of qualitatively measuring compliance, and gathering and analyzing data. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program (Part One of Two)” (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.23 (Nov. 23, 2016)

    Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part Two of Two)

    The International Organisation for Standardisation’s new standard for anti-bribery management systems – ISO 37001 – provides a useful frame of reference for companies developing management tools such as key performance indicators (KPIs) and tracking metrics to address anti-corruption compliance. In the first part of this guest article series, Matthew Herrington, a partner at Steptoe & Johnson, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Leslie Benton, vice president of advocacy and stakeholder engagement of CREATE.org, explained how to use ISO 37001 to develop management tools such as KPIs and tracking metrics to address anti-corruption compliance, and provided an example of a KPI strategy mapped to the training requirement. In this second part, they examine additional areas of ISO 37001 that naturally lend themselves to KPI and/or metrics. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One of Two)” (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.22 (Nov. 9, 2016)

    Developing Key Performance Indicators and Tracking Metrics Using ISO 37001 (Part One of Two) 

    The International Organisation for Standardisation, a worldwide federation of national standards bodies, recently released a standard for anti-bribery management systems – ISO 37001. The new standard sets forth requirements for such a program, as well as guidance for establishing, implementing, maintaining, reviewing and improving it. It is a fairly detailed document spanning a range of topics such as employment procedures, third-party due diligence, risk assessments, financial and non-financial controls, and internal audits. In a guest article, Matthew Herrington, a partner at Steptoe & Johnson, Jonathan Drimmer, vice president and deputy general counsel at Barrick Gold Corp., and Leslie Benton, vice president of advocacy and stakeholder engagement of CREATE.org, discuss how companies can use the ISO to develop management tools such as key performance indicators (KPIs) and tracking metrics to address anti-corruption compliance. See “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.21 (Oct. 26, 2016)

    EY’s Rick Sibery Outlines a Seven-Step Process for Monitoring Third Parties

    Despite consistent warnings about the corruption risks associated with engaging third parties in foreign locations, the vast majority of FCPA settlements continue to involve such relationships. Moving beyond traditional due diligence to a more robust, ongoing approach to third-party management is one of the best ways to show regulators that the company is serious about compliance. Effectively monitoring third parties requires more than just performing data analytics, EY partner Rick Sibery said during a recent interview with The FCPA Report. He suggested that a company adopt a holistic approach to monitoring, considering not only its full third-party compliance process but also leveraging other areas of its anti-corruption compliance program. During our conversation, Sibery outlined a seven-step process for optimizing a company’s third-party monitoring program. See “Using Data Analytics to Meet the Government’s Anti-Corruption Compliance Expectations” (May 4, 2016).

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  • From Vol. 5 No.14 (Jul. 13, 2016)

    Treating Like Cases Alike – A Tool for Quantifying Compliance Issue Severity 

    As many practitioners in the compliance community will attest, a significant number of FCPA violations can come across their desk. How can a company ensure that possible FCPA violations are acted on consistently and equitably? In a guest article, Matt Herrington and Stephanie Wang of Steptoe & Johnson propose an analytical tool that allows companies to distill allegations regarding FCPA violations into certain quantifiable factors, allowing compliance officers to create a methodological approach to what investigative response should be taken in any given situation. Such an analysis makes it easier to identify similar allegations and act consistently and, in the event that the government ends up being involved, this severity analysis can help justify the actions taken by the company. Herrington and Wang demonstrate the use of their proposed tool with five hypotheticals and illustrative graphs. See also “Developing Key Performance Indicators and Tracking Metrics for an Anti-Corruption Program” Part One (Feb. 24, 2016); Part Two (Mar. 9, 2016).

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  • From Vol. 5 No.9 (May 4, 2016)

    Using Data Analytics to Meet the Government’s Anti-Corruption Compliance Expectations

    The SEC and DOJ’s FCPA Resource Guide outlines ten “Hallmarks of an Effective Compliance Program” that provide prescriptive guidance about what the DOJ and the SEC consider to be critical components of an effective compliance program. But, what are compliance officers and chief audit executives to do in response to this regulatory “perfect world” of compliance? With limited resources and competing priorities in the real world, where should compliance officers and chief audit executives focus their efforts to meet this guidance? The answer is data analytics, Grant Thornton’s Bill Olsen, Dan Reynolds and Alex Koltsov say in a guest article. They argue that when used properly, data analytics is proactive, risk-based, scalable, repeatable and defensible against after-the-fact scrutiny. The article focuses on how two regulatory program “hallmarks,” ABAC risk assessment and continuous improvement and monitoring, can be addressed by data analytics. See also “Ernst & Young Experts Reveal How Forensic Data Analytics Can Transform Anti-Corruption Compliance” (Apr. 30, 2014).

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  • From Vol. 4 No.21 (Oct. 21, 2015)

    Fighting the Dynamic War on Corruption in China

    Corruption poses a constant risk to companies operating in China, but the nature of that risk is always shifting.  Creative ways to create slush funds that can be used for bribery proliferate in China – travel agents, marketing companies and distributors have all been involved in funneling corrupt funds to foreign officials on behalf of businesses.  In that environment, a company must have a dynamic and comprehensive compliance program.  The FCPA Report, Paul Hastings and EY recently hosted a roundtable discussion about how companies can address and uncover new corruption issues in China while continuously monitoring old issues.  The panel was moderated by The FCPA Report’s Editor-in-Chief, Nicole Di Schino.  The panelists, all recognized experts in Chinese anti-corruption, included: Nat Edmonds, a Paul Hastings partner and former FCPA prosecutor; Ananda Martin, a partner in Paul Hastings’ Shanghai office; and John Auerbach, a partner and former Greater China managing partner in EY’s fraud investigation and dispute services group.  This article summarizes the highlights of the panel discussion.  For more insight from these experts, see “The Emperor Is Far Away: The Evolving Nature of Third-Party Risk in China,” The FCPA Report, Vol. 4, No. 18 (Sep. 9, 2015); and “Responding to China’s Aggressive Anti-Corruption Enforcement,” The FCPA Report, Vol. 4, No. 19 (Sep. 23, 2015).

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  • From Vol. 4 No.18 (Sep. 9, 2015)

    Thinking Outside the Box: Examining the Growing Trend of Compliance Outsourcing (Part Two of Two)

    Chief compliance officers are regularly being pressured to do more with less.  Many are operating in businesses that are rapidly becoming more complex, both in terms of their global reach and in their use of sophisticated information technology, PwC partner Jerry Stone told The FCPA Report.  At the same time, a CCO faces increasing expectations from global regulators, the board of directors and the C-Suite, all while trying to keep compliance costs low.  To address this myriad of concerns, many companies are outsourcing some or all of their compliance functions to third-party vendors.  In this two-part article series, The FCPA Report examines the outsourcing trend and discusses the benefits and risks of outsourcing various compliance functions.  The first article discussed why a company might outsource some or all of its compliance functions and explored the associated benefits and risks.  This second article looks at how companies are outsourcing various compliance functions and details three steps a company should take before selecting a vendor.  See also “Five Tools Every Chief Compliance Officer Needs for Effective FCPA Compliance: Title, Authority, Access, Budget and Culture (Part One of Two),” The FCPA Report, Vol. 2, No. 7 (Apr. 3, 2013); Part Two of Two, Vol. 2, No. 8 (Apr. 17, 2013).

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  • From Vol. 3 No.10 (May 14, 2014)

    A Guide to Detecting and Preventing Expense-Reimbursement Fraud (Part Three of Three)

    A lack of strong controls around the expense-reimbursement process can allow bribes to foreign officials to slip through the cracks.  To assist companies in designing best-in-class expense-reimbursement programs, The FCPA Report is publishing a three-part article series on the topic.  This, the third article in the series, provides strategies for reviewing expense reports and addressing corruption problems that are discovered.  The first article in this series discussed the risks associated with expense reports; provided advice on using travel and entertainment policies to limit expense-report fraud; and outlined strategies for utilizing the training process to decrease expense-report fraud.  The second article in the series explained how different types of expense limits can protect a company and suggested policies that companies can implement to detect and prevent expense-report fraud.  See also “A Guide to Preventing and Detecting Travel Agency Corruption (Part One of Three),” The FCPA Report, Vol. 3, No. 1 (Jan. 8, 2014), Part Two of Three, Vol. 3, No. 2 (Jan. 22, 2014), Part Three of Three, Vol. 3, No. 3 (Feb. 5, 2014). 

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  • From Vol. 3 No.9 (Apr. 30, 2014)

    Ernst & Young Experts Reveal How Forensic Data Analytics Can Transform Anti-Corruption Compliance

    The terms “big data” and “forensic data analytics” (FDA) can seem daunting, especially to lawyers, who may feel more at home opining on legal issues than creating the charts, graphs and maps produced by FDA.  But analyzing big data this way provides a wealth of information that can be used to detect and prevent corruption and can go far in demonstrating a command of compliance to regulators and prosecutors.  Ernst & Young (EY) recently examined how companies use FDA in their “Global Forensic Data Analytics Survey 2014” (Survey).  Vincent Walden and Brian Loughman of EY’s Fraud Investigation & Dispute Services practice spoke with The FCPA Report about the significance of the Survey findings and how companies can use these tools.  EY’s Richard Sibery, with other FCPA experts, gave further insight into big data and FDA at a recent panel at the New York City Bar Association, “Using Data Analytics and Information Technology to Build and Manage an Effective Anti-Corruption Program.”  See also “Anti-Corruption Audits, Risk Assessments, Transaction Testing and the Dangers of Petty Cash: An Interview with Leaders of Ernst & Young’s Fraud Investigation & Dispute Services Practice,” The FCPA Report, Vol. 1, No. 2 (Jun. 20, 2012).

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  • From Vol. 2 No.4 (Feb. 20, 2013)

    How FCPA Transaction Monitoring Software Works

    To comply with the FCPA and other anti-corruption laws, companies operating multi-nationally must closely monitor the actions of their employees, agents and third-party partners for indications of potential bribery.  This is a costly proposition for any company, but especially for smaller companies that lack the human resources necessary to perform comprehensive anti-corruption reviews.  Enter technology.  Relatively recent software innovations allow companies to perform automated FCPA transaction monitoring, thereby enabling companies to track substantially the same number of transactions with fewer people and equal or greater effectiveness.  The FCPA Report recently had an extensive conversation regarding automated transaction monitoring with Patrick Taylor, CEO of Oversight Systems, a company that provides automated transaction monitoring solutions.  In our interview, Taylor explained the fundamentals of automated transaction monitoring; outlined what types of companies should consider transaction monitoring; and explained the benefits of implementing an automated system.

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