Guideline to building a corporate compliance program that will keep you out of hot water.
Any discussion about effective corporate compliance programs should consider what the U.S. Federal Sentencing Guidelines (USFSG) outlines if your company finds itself in a situation of negotiating fees and penalties with regulators or prosecutors.
The USFSG developed guidelines in the early 1990s about how to mitigate such a situation. The seven recommendations, essentially a framework for compliance management systems, have been adopted and integrated throughout multiple workforce compliance and ethics programs.
The seven elements are
- Standards and Procedures
- Executive or Board Oversight
- Due Care in Delegation
- Effective Communication
- Systems for Monitoring, Auditing and Reporting
- Consistent Enforcement
- Respond and Prevent
Why are these seven building blocks important if you’re sitting in the hot seat?
Any organization that can demonstrate an effective corporate compliance program is in place can mitigate fines up to 95%. And when you’re looking at potential penalties in the millions of dollars, it can have a huge impact.