By Travis Miller
Compliance & Regulatory General Counsel
In the last six months, at least four global companies have been hit with fines of over $1 billion for various forms of regulatory non-compliance. Offenses included bribery, corruption, product non-compliance, financial fraud and more. The fact that fines of this size are occurring on a near-monthly basis gives even the most established and ethically-conscious business executives reason for pause.
While the concept of financial risk is not lost on senior executives and compliance managers, there are other compliance risks that are rarely given a level of attention proportional to the business disruption they could inflict if left unaddressed. These risks develop in corporate supply chains, among third-party intermediaries and within win-at-all-costs mentalities, which hide or even reward unnecessary risk. It is difficult to see these realities because they often exist in blind spots, residing just beneath the surface of an underfunded or ineffective compliance program. [Read more…]