The Three Lines Model - OAP250

Description

What is the culture of compliance in your organization? How important is your compliance function in relation to your overall Governance, Risk & Compliance Program? What is the state of compliance and the regulatory climate in your industry and organization? These questions and many more will be addressed during this comprehensive three-day seminar. If you haven’t conducted a thorough review and audit of the corporate compliance function, this interactive seminar will give you the building blocks to develop and measure your compliance function. You will learn how to assess compliance in various regulatory areas, how to use value drivers and how to ensure you understand and are meeting the expectations of your Board and executive team.

Created by a former Chief Compliance, Risk & Ethics Officer, this session will prepare you with what it takes to be successful in today’s highly regulated and dynamic environment. Your internal audit group will also learn how to build a best-in-class teaming relationship with the compliance function. Compliance is an area where a true teaming approach can add significant value and maximize the oversight needed in this important area.

Finally, in a workshop format, we will go through all the aspects needed to build a comprehensive compliance audit approach for your organization including the use of real-life case studies to determine how you would address a particular compliance situation.

Prerequisite: Fundamentals of Internal Audit (OAG101​) or Advanced In-Charge Auditing (OAG201)
Advanced Preparation: None
Learning Level: Intermediate
Field: Auditing
Delivery Method: Group-Live

What you will learn

1. Introduction
• the purpose, the process and the payoffs

2. State of Compliance
• a look at recent compliance studies and surveys
• ranking of compliance and regulatory risk
• exposures – specific industries
• focus: Hottest regulatory risk areas
• cost of compliance
• cost of non-compliance
• what is your company’s state of compliance?

3. The Board’s View of Compliance Activities
• what Boards want
• what executives want
• are the Board and executives wants consistent?
• culture of compliance – how important is it?
• sponsorship for the compliance function and program
• importance of compliance in business decisions
• reporting compliance risks, priorities and activities
• real-time compliance and risk management

4. Understanding the Big Picture
• the depth of the issues, challenges and opportunities
• regulatory agencies, oversight and enforcing compliance
• federal / state / local regulations
• international regulations
• getting input on risks from your external legal counsel and other subject matter experts
• protecting the business
• compliance is in all parts of the business
• connecting risk management, compliance and ethics
• refresh your policies and procedures
• a new look at recognition and discipline around compliance
• the trends tell a story
• the mission: Compliance is everyone’s responsibility

5. Driving Real Value in the “Three Lines of Defense”
• breaking it down
• the components / elements of a comprehensive compliance function
• the universe of compliance and regulatory risks
• working across the “three lines of defense”
• centralize or decentralize compliance
• one unified risk assessment for compliance and regulatory risks
• the importance of partnership – who and what?
• IIA 2050 – coordination and reliance – working to combined assurance
• best practice – establish the Chief Compliance / Chief Risk Office

6. The Compliance Committee
• the importance of having a compliance committee
• sponsorship and leadership of the compliance committee
• mission and goals
• members, participation and meetings
• key drivers, strategic and tactical initiatives
• reporting: Developing the “what’s hot” reporting vehicle for the Board

7. Understanding and Applying the Federal Sentencing Guidelines (FSG)
• the “Seven Golden Rules”
• the documentation requirements
• determine your organization effectiveness and compliance with the FSG
• group research: Which companies have deployed the FSG to their benefit?

8. The Regulatory Agency Audit & Dealing with Regulatory Agencies
• certain regulatory agencies continue to build their staff
• best practices for dealing with regulatory agencies
• building positive relationships
• the planned regulatory audit vs. the surprise audit / visit
• who is best equipped to be the liaison with the regulatory agency?
• responding to the results of a regulatory audit
• when to challenge the results from a regulatory audit – involve external legal counsel
• regulatory consent orders – what they mean to your organization’s reputation
• how to deal with a third party that is responsible for oversight and testing of compliance with the consent order
• lessons learned – making the best of a bad situation

9. The Hottest Regulatory Risk Areas Facing Your Business
• open discussion of the hottest regulatory risk areas
• impact on your business
• actions you are taking or need to take

10. Best Practices For…
• policies & procedures
• compliance training
• tools and technology
• rating of compliance reviews
• performance reviews
• rewards, recognition and discipline
• tracking results, trends and analysis – being proactive
• adding value – drive down the cost of compliance
• reporting – real-time and periodic reporting to the Board

11. Workshop: Build Your Comprehensive Audit Program for the Compliance Function
• in this section, we will outline the areas that the compliance audit program should cover and together we will work through the steps you need to consider in building a comprehensive audit program
• some of the areas include:
• audit scope
• executive sponsorship
• compliance and regulatory risk assessment methodology and development
• training compliance and follow-up
• control self-assessment program
• approach for identifying, reviewing and outlining new regulations and their impact on the business; etc.

12. Case Studies – What Would You Do?
• how would you handle each compliance situation?

13. Summary, Wrap-up, Final Actions and Your Next Steps