Strategic Compliance Management

Sustainability in Supply Chains A guide for private markets investors 🌍 Private markets investors face increasing pressure to integrate sustainability into supply chain management. This guide by PRI explains why supply chain due diligence is essential and how investors can embed it across the investment cycle to safeguard assets, reduce risks, and capture value. Supply chain risks, ranging from human rights abuses to environmental violations, have become financially material issues with direct implications for investor performance, regulatory compliance, and reputation. Human rights concerns are significant. Forced labour affects an estimated 28 million people worldwide, with rising risks in major sourcing countries such as India, Vietnam, China, Mexico and the United States. Migrant workers are particularly vulnerable, while child labour remains prevalent in high-risk industries and regions. Working conditions also present serious challenges. Excessive hours, unsafe workplaces and poor wages undermine the stability of global supply chains. These issues are concentrated in industries such as apparel, electronics, food and agriculture, construction materials and mining where oversight is often limited. Environmental risks add complexity. Nearly half of global sourcing markets face high or extreme risk of violations related to waste management, emissions and hazardous materials. Biodiversity loss and deforestation linked to commodities such as palm oil, soy and timber increase exposure to both regulatory and operational disruptions. Regulatory requirements are tightening worldwide. The EU Corporate Sustainability Due Diligence Directive, the US Uyghur Forced Labor Prevention Act and the EU Deforestation Regulation compel companies and investors to identify, mitigate and report risks throughout their supply chains. Failure to comply carries financial consequences. Volkswagen shipments were detained at US ports, Shein faced delays in listing plans due to sourcing concerns and companies in Germany were investigated and fined for breaches of the Supply Chain Act. These examples show how supply chain management is now a strategic necessity. Proactive due diligence creates opportunities. Companies with strong supply chain transparency and risk management can secure contracts, improve resilience, reduce costs and strengthen their brand. Investors can leverage these practices to enhance portfolio performance and protect value at exit. The guide explains that due diligence should be present at every stage of the investment cycle. This includes governance and policies, early screening, detailed risk assessments, legal agreements, active engagement, monitoring and exit planning. Clear roles, data systems and training are critical. Integrating sustainability into supply chain due diligence strengthens both risk management and value creation. #sustainability #business #sustainable #esg

From IP basics to IP strategy 🌟 Scientists are key creators of intellectual property (IP). Therefore, it is important that they know about IP rights. It enables them to recognize patentable inventions, comply with IP policies, and make informed decisions about publishing and patenting. IP rights protect creations of the mind. The most common rights are: 💡 Patents: protect inventions, such as a genetically modified microorganism or a new drug. 🎨 Design rights: cover the appearance of products, like the look of a smartphone or the shape of a lamp. 🛡️ Trademarks: names and logos that distinguish a product from other products, e.g., the Google logo. 🔒 Trade secrets: confidential information that is kept secret, like a manufacturing process or chemical composition. 📚 Copyright: protects original works, including art and research articles 🌱 Plant breeder's rights: protect new plant varieties. Often, products aren't protected by a single IP right, but multiple. For instance, a biotech company may have: - Patents for technical aspects of a product, e.g., an improved version of CRISPR-Cas9. 🛡️ - Trademark for the product's name, e.g., HelixForge.™️ - Trade secrets for its manufacturing methods or the optimal buffer composition. 🔒 Such an IP strategy combines various IP rights, each protecting a different aspect of the product. This enhances product protection as it is harder for competitors to copy the product or create similar products legally. By aligning IP strategy with business objectives through marketing, further R&D, licensing and strategic partnerships, IP decisions become a cornerstone for building a long-term competitive advantage for a company. 🚀 Organizations of all types and sizes, from universities and startups to large corporations, use IP strategies. Check the examples below to see how various IP rights can synergistically protect a product.

The biggest supply chain mistake? Ignoring trade compliance. Here’s how to turn compliance insights into a competitive advantage Optimizing your supply chain with trade compliance insights is a game-changer. Here are key strategies and considerations to make it happen. Understanding Trade Compliance's Role Trade compliance ensures all import and export activities follow international regulations. This is crucial for avoiding penalties and boosting supply chain performance. A solid trade compliance program reduces friction and enhances efficiency. Key Strategies for Optimization 1. Conduct a Thorough Risk Assessment: • Identify potential risks like tariff impacts and regulatory changes. • Evaluate your total tariff liability to understand cost structures. 2. Enhance Internal Collaboration: • Foster teamwork between procurement, legal, IT, and trade compliance. • Establish a governance framework with executive sponsorship. 3. Leverage Technology: • Use automated tools for classification workflows and supplier screening. • Implement global trade analysis software for risk and cost savings. 4. Regular Training and Auditing: • Conduct training sessions on compliance best practices. • Perform internal audits of suppliers’ compliance policies. 5. Monitor Regulatory Changes: • Stay updated on customs regulations, trade agreements, and sanctions. • Engage with logistics providers offering compliance consulting. 6. Optimize Supply Chain Contracts: • Review contracts with suppliers to include clear compliance obligations. • This helps avoid non-compliance issues during audits. Conclusion Optimizing your supply chain through trade compliance involves risk management, technology, collaboration, and continuous education. Prioritizing these elements enhances operational resilience, reduces compliance costs, and drives long-term growth. Call to action : Ready to optimize your supply chain? Leverage these trade compliance insights to reduce costs and enhance operations

The CFPB has just released a notice of proposed rulemaking that would amend Reg V to expand the definition of a "consumer reporting agency" under FCRA: The proposed rule would treat companies that sell data about "income or financial tier, credit history, credit score, or debt payments" as "credit reporting agencies," thereby requiring them to adhere to the requirements of Fair Credit Reporting Act and its implementing regulation, Reg V. The Fair Credit Reporting Act, a law passed in 1970, is intended to afford consumers certain rights around how certain data about them is collected, shared, and used. While most will be familiar with the "big three" credit bureaus, Experian, Equifax, and TransUnion, there are actually dozens of companies that are registered as consumer reporting agencies and regulated under FCRA/Reg V, including those that focus on preparing reports for consumers applying for jobs, apartments, and insurance, for example. FCRA grants consumers a number of rights and protections, including the ability to request and obtain the data a CRA has collected and assembled about them; the right to know if information in a consumer report has been used against them, for example to decline an application for credit or employment ("notice of adverse action"); and the right to dispute incorrect or incomplete information, among other protections. The bureau argues the proposed rule will better protect consumers from national security and surveillance risks, criminal exploitation, and violence and stalking, among other benefits, by protecting consumers' personal identifiers from abuse and misuse and by requiring clear consumer consent for data sharing. Should the rule be finalized, it is likely to pose constraints and costs on businesses, including those that use such data in mission-critical functions, like fraud screening. However, the proposed rule's fate is far from certain. Given the timing and the requirements and process involved with finalizing rules under the Administrative Procedures Act, the decision on whether or not to move forward with finalizing the rule will sit with the Trump administration and whomever it appoints to lead the CFPB.

Audit, Risk & Compliance (ARC): The Three Pillars of Strong Governance "Let me explain why Audit, Risk, and Compliance aren’t just checkboxes—they’re your governance backbone." I’ve had this conversation many times with peers, clients, and boards. And here’s what I often say when someone asks, “How do you build strong governance?” You start with ARC: - Audit - Risk Management - Compliance Each has its role, but when aligned, they become a strategic force. Let me walk you through it from experience: 🔍 Audit is your independent lens. Think of Audit as the team that tells you what’s happening. Their job is to verify that controls are working not just existing on paper. ▶ Example: I once saw an internal audit uncover a $500K billing discrepancy no one had noticed. That wasn’t just cost savings it was a control failure caught before it became reputational damage. The best audit teams today use data analytics and real-time assurance tools to stay ahead. Traditional static audits no longer suffice. ⚠️ Risk is your radar. Risk Management isn’t about stopping risk, it’s about knowing which risks matter, and how much risk you can take to grow. I’ve seen risk teams run scenario analyses ahead of market expansion that flagged FX volatility. With a solid hedging plan, they avoided a 7% EBITDA hit. That’s what proactive risk management looks like. And right now? The strongest risk programs I’ve seen are integrating AI, ESG risk, and third-party oversight into their frameworks. ✅ Compliance is your moral and legal compass. Compliance isn’t just about avoiding fines. It’s about building trust internally and externally. A solid compliance program is the reason one company I worked with navigated new data privacy regulations across multiple countries without missing a beat or getting penalized. What’s changing? Compliance is becoming more automated, more behavior-driven, and more global. And that means compliance officers need better tech and a seat at the strategy table. Now here’s the key: ARC only works when it's integrated. When Audit, Risk, and Compliance operate in silos, things fall through the cracks. But when they collaborate sharing insights, aligning priorities, and using common platforms governance becomes a value driver. A recent PwC survey backs this up: - 73% of execs say ARC alignment improves decision-making - 65% plan to invest in integrated GRC platforms - Over half say Internal Audit is now a transformation partner If you’re leading or supporting ARC functions, my advice is simple: Don’t build walls, build bridges. The future of governance isn’t in functions. It’s in how those functions work together. Let me know how ARC works in your organization today. Do the functions collaborate, or still operate in silos? #Governance #InternalAudit #RiskManagement #Compliance #GRC #BoardEffectiveness #OperationalResilience #Leadership #3prm #tprm #GovernanceExcellence #RiskStrategy #ComplianceCulture

🔍 Risk-Based Auditing: Auditing What Truly Matters In today's dynamic business environment, Risk-Based Auditing (RBA) is not just a method—it's a mindset. Rather than treating all processes equally, RBA helps organizations focus their audit efforts on areas with the greatest potential for impact, whether it's operational, financial, or reputational. ✅ Prioritize high-risk processes ✅ Strengthen internal controls where they matter most ✅ Enable data-driven decision-making ✅ Drive real, sustainable improvements By aligning audit efforts with risk exposure, organizations not only enhance compliance but also add strategic value across departments. Whether you're in aviation, healthcare, infrastructure, or manufacturing — RBA transforms your audit function from a checklist activity into a strategic partner. 📌 Key takeaway: Risk-based auditing is about asking “What could go wrong here, and how do we prevent it?” before issues arise. Let’s stop auditing for the sake of it. Let’s audit with purpose. #RiskBasedAuditing #InternalAudit #QualityManagement #OperationalExcellence #Compliance #RiskManagement #ISO9001 #Leadership #ContinuousImprovement

🔄 Mastering KYC Renewals 🔄 (Part 2) ⚠️ Risk management during KYC renewals is where many compliance teams stumble. It’s not just about updating records, it’s about catching early warning signs before they turn into regulatory or reputational disasters. spektr’s latest guide dives deep into how to make KYC renewals a proactive, risk-driven process that enhances compliance, rather than slowing operations down. 🚨 A one-size-fits-all renewal process is inefficient and risky. High-risk customers need continuous scrutiny, while low-risk ones should flow through with minimal friction. Many organizations struggle with outdated workflows that apply the same checks to all clients, wasting resources and missing critical red flags. spektr’s guide explains how to build a risk-based, scalable renewal framework. 👌 Key takeaways from the report: 📌 Real-time risk detection Instead of waiting for scheduled reviews, integrate adverse media, beneficial ownership changes, and transaction anomalies into your renewal triggers. 📌 Risk-based reviews that actually work High-risk cases escalate automatically, medium-risk customers go through threshold-based reviews, and low-risk clients are auto-validated, reducing manual workload. 📌 Regulatory agility AML regulations are evolving fast. The guide outlines key upcoming changes (EU AML Directives V & VI, U.S. AML Act 2024) and how to adapt policies seamlessly. 📌 Seamless compliance Move beyond rigid, one-off reviews. The right framework ensures renewals are smooth, risk-aligned, and audit-ready at all times. 📌 Case study: catching risks before it's too late A fintech discovered a high-risk beneficial owner change months after it happened, leaving them exposed to regulatory scrutiny. spektr’s approach prevents these blind spots by enabling real-time risk assessment. 💡 Why does this matter? Traditional KYC renewal processes are reactive and inefficient. By shifting to a proactive, risk-based model, compliance teams can mitigate threats before they escalate, without creating unnecessary customer friction. 📥 This is Part 2 of the KYC Renewals guide, focusing on risk-based frameworks and regulatory agility. For those who missed Part 1, we covered efficiency, automation, and customer experience in renewals. The full guide is available right there! ⬇ Are you passionate about an AML-related topic? 🤔 Would you like to write about it and reach over 24k compliance professionals? 🔥 If so, just send me a message to work out the details! 🙂 #compliance #financialcrime #moneylaundering #aml Alba Mikkel

⚖️ Joining a Board? Read This Before You Say Yes. A board seat boosts your profile - but it can also put your house, savings, and reputation on the line. The risk isn’t theory: 🔴 BHS - directors faced £133m in claims even after taking advice. 🔴 Carillion - directors endured years of regulatory pursuit before claims dropped. 🔴 In the US, France, Germany and Australia, enforcement is even tougher. Here are 10 checks that Eireann and I think every smart director should make before joining: 1️⃣ Understand your duties Companies Act duties are personal and non-delegable: care, skill, solvency, conflicts. Advice helps - but judgment stays with you. 2️⃣ Be financially literate Directors must read and question financials. Courts apply an objective/subjective test: a finance director will be judged to a higher bar than, say, a CMO (Dorchester Finance v Stebbing). 3️⃣ Test governance and information flow Are board packs timely and complete? Are conflicts disclosed and minuted? Do the articles and shareholder agreements support oversight? Late or inadequate packs are a red flag. 4️⃣ Check disputes and compliance Ask about litigation, regulator inquiries, and whistleblowers. Verify compliance with FCA, CQC, Ofsted, HSE, ICO. Past issues often repeat. 5️⃣ Assess people and board dynamics Liability is joint and several. Who are your co-directors? Any unexplained departures? A dysfunctional board magnifies exposure. 6️⃣ Health & Safety, environmental, ESG HSE prosecutions are the most common director claims in the UK. Individuals can face criminal charges and even prison. Fines can hit millions. 7️⃣ Scrutinise indemnities and D&O Do indemnities advance defence costs and survive resignation? Read the D&O yourself and have a broker walk you through it: limits, Side A cover, inquiry-stage protection, exclusions. Secure 6 years’ prepaid run-off. 8️⃣ Check wider insurance Beyond D&O: PI, cyber, product liability, public liability, business interruption. Limits must fit the risk profile. 9️⃣ Probe tax, employment, pensions issues HMRC can issue Personal Liability Notices for PAYE/VAT arrears. Tribunal and whistleblowing claims can name directors personally. Pension deficits trigger enforcement. IR35/TUPE errors are costly. 🔟 Consider the international dimension If it’s a non-UK company, your duties follow local law. Germany (late insolvency filings), Australia (insolvent trading), and the US (derivative suits) all raise the stakes. 🚩 Red Flags - Late/incomplete board packs - Reluctance to share accounts or regulator correspondence - Unexplained resignations - Aggressive accounting or auditor churn - Thin insurance or requests for personal guarantees - Signs of trading while insolvent 👥 Executives vs NEDs Duties are identical in law. Executives carry more operational exposure, but NEDs are not “light touch” - courts expect active challenge. 👉 DM me to join my next directors' duties bootcamp. 👇 DM Eireann Kenny of #Aon to talk D&O cover.

Third-Party Risk Management (TPRM) in #GRC— As organizations increasingly rely on vendors, contractors, and service providers, third-party risk management (TPRM) has become a critical part of GRC programs. Poor vendor management can expose companies to data breaches, regulatory penalties, and operational disruptions. 1. TPRM • Regulatory Compliance: Frameworks like PCI DSS, GDPR, and ISO 27001 require organizations to assess and monitor third-party risks. • Vendors often manage critical business functions, so disruptions in their processes directly impact your operations. • A vendor breach could tarnish your brand and lead to legal or financial penalties. 2. TPRM Lifecycle • Assess vendor security practices before engagement (e.g., security questionnaires, contract reviews). • Identify risks specific to the vendor (e.g., data handling practices, access to systems). • Continuously monitor vendor performance and compliance through audits, reporting, and SLAs. • Ensure proper data disposal and de-provisioning of access after vendor offboarding. 3. Frameworks / best practices • NIST SP 800-161 focuses on supply chain risk management for federal systems. • ISO 27001/27036 provides guidance on third-party security requirements. • Shared Assessments Program offers standardized tools like SIG (Standardized Information Gathering) for vendor assessments. 4. Key Tools • Vendor management platforms like OneTrust, BitSight, or Prevalent help automate risk assessments and ongoing monitoring. • Use third-party security ratings to assess vendor vulnerabilities in real time. 5. Building strong TPRM programs • Establish clear policies and procedures for vendor risk management. • Conduct periodic risk assessments and ensure vendors comply with applicable regulations. • Collaborate with stakeholders across procurement, legal, IT, and compliance teams. TPRM integrates seamlessly into GRC.

How do you engage employees in compliance… when they don’t even have a desk? (Or a laptop. Or a corporate email. Or time to sit through a training video.) Welcome to the world of deskless workers — the 2.7 billion people who keep essential industries running… and often get left out of the compliance conversation. Here’s the problem: 📉 84% of deskless employees say they don’t get adequate communication from their company. 📉 Many have zero access to compliance tools or updates during their shift. 📉 And yet — they’re often closest to the real risks. So how do we fix that? 💡 It starts with designing compliance for them, not just sending things at them. Here are 3 ways to rethink compliance for your deskless workforce: 1️⃣ Listen first. Use surveys, focus groups, or even a suggestion box in the break room to understand what they need from compliance. 2️⃣ Get personal. Build personas to guide your messaging. A forklift driver and a hospital cleaner won’t respond to the same tone or channel. 3️⃣ Ditch the one-size-fits-all comms. Use multiple, simple channels: → Posters → Short mobile-friendly videos → Manager-driven conversations → Storytelling sessions over policy dumps Compliance only works when everyone’s in the room, even the ones without one. 💬 Want help designing smart, human-first compliance communication that reaches your whole workforce? Let’s talk. #ComplianceInfluencer Stat source: https://lnkd.in/excCc6gf (c) pic my own. Me during my adventures as an auditor for social accountability going deep down the supply chain and talking a lot to deskless workers.