Tools of Effective Compliance : Proven Measures for Compliance Officers

Unlike many standard works on compliance, this book focuses not on the goals, but on the means that enable effective compliance. From the internal perspective of the compliance officer, everyday problems are addressed and solved with the help of concrete, tried-and-tested measures. Based on the tension between profit generation and compliance, ethical principles as well as the appearance of compliance, its handling of contacts and its procedure in the event of violations are also discussed. Psychological and sociological insights broaden the perspective, put people at the center and offer new starting points for designing successful compliance. The content Background and foundation of compliance Decisions, goals and planning Appearance of the compliance officer Supervisors, groups and newcomers to the profession Partners, allies, competitors Audits and training Conflicts, compliance violations and detection Development and perspectives The author Thomas Schneider holds a degree in business administration. After working for many years as an internal auditor for a Dax 40 company, he has been responsible for the compliance management of a medium-sized steel trader in Essen for several years. He regularly publishes articles and books on the subject of compliance and speaks at conferences. The translation was done with the help of artificial intelligence. A subsequent human revision was done primarily in terms of content Preface to the Second Edition 5 Preface to the First Edition 6 Contents 8 1 Introduction 14 Abstract 14 References 17 2 The Background of Compliance 18 Abstract 18 References 22 3 The Company 23 Abstract 23 3.1 Binding, Identification, Self-control 23 3.2 Legality and Legitimacy 27 3.2.1 Legal and Legitimate 28 3.2.2 Legal and Illegitimate 29 3.2.3 Illegal and Legitimate 30 3.2.4 Illegal and Illegitimate 31 3.3 Corporate Appearance 31 3.4 Corporate Culture 32 3.5 The Choice of Company 35 References 36 4 The Foundation of Compliance 37 Abstract 37 4.1 Theory and Practice 37 4.2 Ethics 38 4.3 Decision in Individual Cases 40 4.3.1 Ethics of Conviction and Responsibility 40 4.3.2 Rule Utilitarianism 41 4.3.3 Revenue vs. Ethics 42 4.4 Negotiate Ethics, Ensure Decency 43 4.5 The Tension Field 45 4.6 The Negative Perspective of Compliance 47 References 48 5 Decide 49 Abstract 49 5.1 Interpretation Approach 49 5.2 Complex Situations 50 5.3 Requirements 52 5.4 Gut Feeling, Heuristics or Algorithm 54 5.4.1 Special Situation of Compliance 54 5.4.2 Types of Decisions 55 5.4.3 Expert Knowledge 56 5.4.4 Algorithms 57 5.4.5 Gut Feeling 58 5.4.6 General Rule 60 5.4.7 One-time Opportunities? 60 References 62 6 Goals and Planning 63 Abstract 63 6.1 Goals 63 6.2 Determination of Objectives 64 6.3 The Garbage can Model 66 6.4 The Environment of Planning 69 6.5 Planning 71 6.6 Project Forecast and Project Accounting 73 6.6.1 Better Tools, Better Results? 73 6.6.2 Planning and Reality 73 6.6.3 The Nobel Laureate’s Embarrassment 74 6.6.4 Inside and Outside View 74 6.6.5 More Information, Higher Certainty? 75 References 77 7 The Appearance 78 Abstract 78 7.1 Reasons for the Appearance 78 7.2 The Self-reinforcement 80 7.3 Habits 81 7.4 The CO as a Seller 82 7.5 Halo Effect 83 7.6 Sympathy 84 7.7 Relationship Maintenance 87 7.8 Conviction 88 7.8.1 The Persuasiveness of Statements 88 7.8.2 The Negative Example 89 7.8.3 Resisting the “Magnetic” Center 89 7.8.4 Implications for Compliance 90 References 91 8 The Boss 92 Abstract 92 8.1 Basic Knowledge of the Responsible 92 8.2 Attitude and Motives of the Superior 93 8.3 Strength of Will 95 8.3.1 Basic False Decisions 95 8.3.2 On and Off of Willpower 95 8.3.3 The Single Decision 97 8.3.4 Recommendations 97 8.4 Independent Compliance 98 8.4.1 The Necessary Resources 98 8.4.2 Facts vs. Assumptions 99 8.4.3 Playing Across the Board 99 8.4.4 The Key Competence 100 8.4.5 Compliance Opponent Boss 100 References 100 9 The Inner Circle 102 Abstract 102 9.1 In the Thick of it Instead of Just Being There 102 9.2 Knowing Each Other 105 9.2.1 Do You Get to Know Each Other? 105 9.2.2 The Skin of the Other 106 9.2.3 Determination of the Other Point of View 106 9.2.4 Determining the Perspective 107 9.3 Members of the Inner Circle 108 9.3.1 Relevance of Rumors and Moods 108 9.3.2 Information Exchange 109 9.3.3 Other Perspectives 110 9.3.4 Official Events 111 9.3.5 Unofficial Dates 112 9.4 Concentric Circles 113 9.5 Giving and Taking 115 9.6 Small Gifts Keep the Friendship 116 References 117 10 Allies 118 Abstract 118 10.1 Possible Allies 118 10.2 The Individual Allies 120 10.3 Reasons and Obstacles to Alliance Formation 121 10.4 The Emotional Bank Account 123 References 124 11 The Operational Management 125 Abstract 125 11.1 The Image of Operational Management 125 11.2 Special Features in Dealing 126 11.3 Control Function of Operational Management 127 11.3.1 Filtering, Explaining, Translating 128 11.3.2 The Question of Guilt 129 11.3.3 Reactions to Compliance Activities 130 11.3.4 Fear as a Means to an End 132 11.4 Rejection of Compliance 133 References 133 12 The Contacts 134 Abstract 134 12.1 Employee Intervention 135 12.2 Decision Criteria 138 12.3 Supervisor vs. Compliance 139 12.4 Authority 139 12.5 Power Imbalances 141 12.6 Informal Ways of Obtaining Information 143 12.7 Understanding and Understanding 144 References 144 13 Beginners 145 Abstract 145 13.1 Between Buddy and Boss 145 13.1.1 Knowledge About Compliance 146 13.1.2 Knowledge Transfer 146 13.1.3 Influence 147 13.1.4 Special Form of Influence 148 13.2 Areas of Influence 150 13.2.1 New Employees 150 13.2.2 Trainees 151 13.2.3 Influencing the Majority 152 13.3 Compliance Care 152 References 153 14 The Groups 155 Abstract 155 14.1 Functioning of Groups 155 14.2 Compliance as a Group 162 References 165 15 Examinations 166 Abstract 166 15.1 Examination and Control Concepts 166 15.1.1 Controls 167 15.1.2 Examinations 168 15.1.3 Relationship to Internal Audit 169 15.1.4 Controlling 171 15.1.5 Organization, Strategic Planning 172 15.1.6 Whistleblower 172 15.1.7 Self-Examination of Compliance 173 References 173 16 Trainings 174 Abstract 174 16.1 The Goal 174 16.2 Influence vs. Consolidation 176 16.3 Electronic vs. Face-to-Face Training 178 16.3.1 Electronic Training 179 16.3.2 On-Site Trainings 180 16.3.3 The Lecturer 180 16.4 Knowledge 181 16.5 Values 182 16.6 Rules of Thumb 183 References 183 17 The Compliance Violation 184 Abstract 184 17.1 Compliance as a Pressure Cooker 184 17.2 The Wrong Paradigm 185 17.3 Considered and Spontaneous Behavior 185 17.4 Money or Love? 187 17.5 (Potential) Perpetrators Reach 189 17.6 The Offer of Compliance 189 17.7 Future Prevention 190 17.8 The Incorrigible 190 References 191 18 After the Discovery 192 Abstract 192 18.1 Responsibility and Objectives 192 18.1.1 Future Avoidance 193 18.1.2 Justice 194 18.2 The Internal Company Court 195 18.2.1 Penalty 196 18.2.2 Confidentiality vs. Corporate Pillory 197 18.2.3 Damage Compensation 197 18.2.4 Further Activity 198 18.2.5 Image in Public 198 18.3 Positive Conclusion 199 References 199 19 Conflicts 200 Abstract 200 19.1 Honesty 200 19.1.1 Degree of Honesty 201 19.1.2 Moral Implications 201 19.1.3 Honesty and Money 202 19.1.4 Direct and Indirect Receipt of Money 203 19.1.5 Knowledge of Mechanisms 204 19.2 Possible Solutions to Conflicts 204 19.3 Power 207 19.3.1 Sources of Power 208 19.3.2 Motives and Influencing Factors of Power 209 19.3.3 The Effect of Power 211 19.3.4 The Clarification of the Question of Power 211 19.3.5 Power and Morality 214 References 215 20 Examiners and Consultants 216 Abstract 216 20.1 Agility 216 20.2 The Right to Interpretation 217 20.3 Supply and Demand 218 20.4 Compliance Audits 219 20.5 Examination Procedure 220 20.6 Purchasing Services 222 20.7 Further Development 223 References 224 21 Your Own Career 225 Abstract 225 21.1 Evaluating Your Own Situation 225 21.2 Achieving Goals 227 21.3 Fortune Must They Have, The Compliance Officers 228 21.3.1 Aspects of Happiness 228 21.3.2 The Meaning of Happiness 229 21.3.3 Action Recommendations 230 21.3.4 The CO’s Happiness 231 21.4 Dealing with Failures 231 References 232 22 Changes 233 Abstract 233 22.1 The Worst Case Scenario 233 22.2 Chance vs. Risk 235 22.3 Responsibility 235 22.4 Preparation of the Individual Case 237 22.5 Reasons for Behavior 239 References 240 23 Afterword 241 References 242 "Unlike many standard works on compliance, this book focuses not on the goals, but on the means that enable effective compliance. From the internal perspective of the compliance officer, everyday problems are addressed and solved with the help of concrete, tried-and-tested measures. Based on the tension between profit generation and compliance, ethical principles as well as the appearance of compliance, its handling of contacts and its procedure in the event of violations are also discussed. Psychological and sociological insights broaden the perspective, put people at the center and offer new starting points for the design of successful compliance."--Cover page 4