Avoiding The Regulator's Hammer: What Small and Medium Sized Businesses Need to Know About Compliance.

1. What Small And Medium
Sized Businesses
Need To Know
About Compliance
Real Life Example:
The Cost Of Failure
Top 5 Offenses
It’s Not Just
The Company
Proactive Action Mitigate The Risks
A small manufacturing company
with < 200 employees pleaded
guilty to export violations
Fines/Penalties
5% of annual revenue
Restitution
Independent Monitorship
Compliance Reform
Dangers of New Sanctions/Charges During Probation Period
Year
Probation
Requirements
Collateral Damage
Brand/Reputation Issues
Debarment/Disqualification
Employee Retention Effects
Hidden Costs
Attorney/Professional Fees
Investigation Costs
Lost Opportunity Costs
Required Compliance $$
Environment | Fraud | FDA | Antitrust | Import/Export
at least
one individual
co-defendant
are high-level
officials
Nearly
A targeted, well-resourced ethics and
compliance program is just a fraction
of the cost of a compliance failure and
delivers results in lower misconduct
instances and higher detection rates.
In 2013, Companies With A Strong
Ethical Culture Were Much Less Likely
To Experience Misconduct.
% of employees observed misconduct
Fundamental
Cost-Effective
High Quality
Compliance
Training Solution
Find out more and join
us for a complimentary
webinar.
http://bit.ly/1qpDxZb
RESOURCES: United States Sentencing Commission, 2011-2012 Datafiles, USSCFY11-USSCFY12. 2011 NBES Survey, Ethics Resource Center. https://www.adp.com/tools-and-resources/adp-research-institute/insights/insight-item-detail.aspx?id=270D6830-CB20-4CA9-A566-ADF1897F7E91. United States Sentencing Commission, 2012 Sourcebook of Federal Sentencing Statistics. The Environmental
category includes the following offense types: Environmental-Water Pollution, Environmental-Air Pollution, Environmental-Hazardous/Toxic Pollutants, and Environmental-Wildlife.
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More Than
have experienced unintended
expenses in the last 12 mo.
related to noncompliance
1/3
2009-2012
of all organizational
convictions were companies
with < 1000 employees
90%
$2M
4
50.8% Half
Core
Compliance
Training
88%
20%
Weak
Culture
Strong
Culture
Avoid
The Regulator’s
Hammer