Design and / or perform assessments for items such as:
- Compliance & Ethics Program,
- Ethics & Compliance Risks,
- Organizational Culture,
- Employee Conflict of Interest Certifications,
- Specific Employee surveys,
- interviews, and/or focus groups, etc…
All organizations assess their risks, literally, on a daily basis through individual employees and company agents who execute the organization’s ongoing operations. Hopefully, each decision is made with the best interest of the organization in mind and is one that seeks to maximize stakeholder return while minimizing any risk that must be assumed.
However, when business decisions become serious enough that if the worst possible scenario were to occur, the organization would be seriously injured insofar as its reputation and/or financial condition, then that business would do well to employ a professional risk analysis with the hope of eliminating or mitigating the most serious risks.
Although there are many types of risk assessments used in business, for compliance and ethics programs in particular, risks can specifically be identified based on the steps required to have an effective compliance and ethics program as documented in the US Federal Sentencing Guidelines, (FSGs) Chapter 8, on Sentencing of Organizations, Part B. (See below blocked off explanation of FSGs.) Once identified, each risk item can be given a score as to its likelihood of occurrence and its estimated impact to the organization which are used to promote risk management.
Our Approach to Risk Assessments
At ILPartners, we collaborate with clients in designing and performing honest and relevant assessments based on the organization’s size and practical needs. ILPartners may serve to be the overall driver of the assessment or could provide for just a portion of an organization’s larger overall assessment of itself. Often time, the organization will know where its highest risks are and just need help in doing a deep dive into that portion of the business. ILPartners helps in any way it can to serve the client.
ILPartners Ethics & Compliance ‘7 + 1 Steps’ Program Assessment Tool (PAT)™
Contact us to request more information about our ILPartners Ethics & Compliance Program Assessment Tool (PAT)™ that can be used as is, or modified to a specific client’s needs to accomplish the task of performing a compliance and ethics program risk assessment.Request info
Besides Compliance and Ethics Risk Assessments, ILPartners works with clients to provide the following other types of assessments and certifications.
- Ethics & Compliance ‘Program’ – This is a required periodic assessment needed to comply with the FSGs requirements noted below.
- Organizational Culture – There are many different types of organizational culture assessments that can be utilized to help diagnose an organization’s existing culture(s). And many organizations are only starting to understand the significance of its culture on its productivity. ILPartners can help to design, perform and makes sense of a cultural assessment that can be used to improve operations including an organization’s acceptance and adherence of its code of ethics and business conduct.
- Employee Conflict of Interest Certifications – Many organizations may question new employees as they are hired about whether or not they may have personal conflicts of interests with that of executing business for the organization, however, periodically, organizations are called to check for and mitigate or eliminate potentially serious conflicts that may arise as employees and agents conduct business for the organization. ILP collaborates with the client to design and implement periodic conflict of interest certifications.
- Specific Employee surveys, interviews, and/or focus group work – Depending on specific client needs, ILPartners serves as an arm in arm partner to accomplish the tasks identified.
In November 2011, the US Federal Sentencing Guidelines, chapter 8: Sentencing of Organizations, Part B, was amended by striking the heading: “PART B – REMEDYING HARM FROM CRIMINAL CONDUCT”, and inserting the heading: “PART B – REMEDYING HARM FROM CRIMINAL CONDUCT, AND EFFECTIVE COMPLIANCE AND ETHICS PROGRAM.
In part, the new guidelines stated that for an organization to have an effective compliance and ethics program, it shall —
Exercise due diligence to prevent and detect criminal conduct, and otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.
Such a compliance and ethics program shall be reasonably designed, implemented, and enforced so that the program is generally effective in preventing and detecting criminal conduct.
In further explanation of the new requirements, the guidelines also added that the organization shall take reasonable steps to ensure that the organization’s compliance and ethics program is followed, including:
- monitoring and auditing to detect criminal conduct;
- evaluating periodically the effectiveness of the organization’s compliance and ethics program; and
- having and publicizing a system, which may include mechanisms that allow for the organization’s employees and agents to report or seek guidance regarding potential or actual criminal conduct without fear of retaliation.
The revised guidelines also stated that the organization shall periodically assess the risk of criminal conduct and shall take appropriate steps to design, implement, or modify each program requirement to reduce this risk identified through this process.
Like most wild rabbits in their natural habitats, there is the constant risk of not surviving for another day! Talk about assessing real and perceived risks!
Shouldn’t we in business take on the ‘attitude’ of the rabbit’, always sensing, listening, evaluating, planning, acting, and re-evaluating the organization’s legal, financial, operational and reputational risks!