Pandemic is an opportunity to clean house, compliance experts say
07 Sep 2020

The coronavirus pandemic is presenting companies with an opportunity to scrutinize due diligence processes, risk assessments and other routine tasks that help businesses avoid brushes with the law, compliance chiefs say.

The effort to make compliance departments more cost-effective is happening as companies grapple with the economic fallout from the coronavirus pandemic.

“This is an amazing time for companies—especially their compliance departments—who are resource strapped, to engage in what I call internal cleanup,” said Allen Chiu, chief compliance officer of Genesys Telecommunications Laboratories Inc., a call-center software company.

The pandemic has radically changed the business landscape for many companies, and in turn altered where legal risks such as bribery and corruption lie. Compliance officers should be asking themselves if they have the right policies in place or if they are doing business with third-party business partners that are no longer relevant, Mr. Chiu said during a virtual panel hosted on Friday by the Practicing Law Institute, a nonprofit organization that provides continuing legal education programs.

Third parties such as distributors, resellers and suppliers pose a corruption risk for companies, since they can be used to funnel bribes to government officials. Vetting them is one of the core responsibilities of a compliance department.

By Dylan Tokar, The Wall Street Journal, 4 September 2020

Read more at The Wall Street Journal

Photo: GrindtXX/CC BY-SA 4.0

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