The Morning Risk Report: Compliance Versus Growth (Boehme quoted)

The Morning Risk Report: Compliance Versus Growth 

Greg Millman – Wall Street Journal – April 24, 2014

Panel with Donna Boehme, Odell Guyton & Harvey Kelly covered by WSJ Risk and Corruption Blog 

dow symposium

Panelists at the Dow Jones Global Compliance Symposium said that the lesson of compliance problems in growth markets is to line up the compliance ducks well before entering a growth market, particularly due diligence and clear accountability. Companies that don’t may find themselves stammering “rogue employee” in response to reputation-staining headlines for corruption scandals.

Compliance can mean less business and slower business. There was the company that discovered it could not do business compliantly in India, but only after sinking $20 million into an investment there. There was the company that discovered a Russian deal had an oligarch behind it, but only after drilling through 63 layers of ownership. Panelists at the Dow Jones Global Compliance Symposium said that the lesson of such cases is to line up the compliance ducks well before entering a growth market, particularly due diligence and clear accountability. Companies that don’t may find themselves stammering “rogue employee” in response to reputation-staining headlines for corruption scandals. “To me, when you say ‘we had a rogue employee’ it’s the same as saying ‘we had a problem with leadership and culture and controls’,” said Donna Boehme, principal with the consulting firm Compliance Strategists LLC.

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