Donna Boehme – Corporate Counsel – March 17, 2015
The bulk of 2014 was a milestone year for the compliance and ethics field, marking the demise of the failed “Compliance 1.0” model (compliance as a captive arm of the legal function) and the rise of “Compliance 2.0” (compliance freed from the legal department and positioned for success). Some big developments—such as the now standard separation of compliance from legal in the health care industry, and similar momentum in big banks after a series of record-breaking settlements involving LIBOR rate fixing, mortgage fraud and money laundering—have led to some (now prophetic) media headlines including “Legal Losing Its Grip Over Risk and Compliance,” “Ethics and Compliance Moving Out of the Law Department” and “Report: More Companies Splitting Legal and Compliance.” Several industry surveys have mirrored this momentum.
A careful observer will have noted three key events from 2014 that can be categorized as “nails in the coffin” for the decades-old, fatally flawed Compliance 1.0 model:
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Read what other experts in our Thought Network are saying about the fall of Compliance 1.0: