Corruption Currents: Taliban Faces Cash Crunch
The Taliban is facing a cash crisis, as donors refuse to back an insurgency targeting civilians.
Risk and Compliance Journal
Governance
Environmental Proxy Proposals Are Making More Demands
Shareholder proposals focusing on environmental issues are not only becoming more frequent but also increasingly sophisticated, with resolutions evolving from requests for greenhouse gas emissions cuts to linking executive pay with sustainability performance.
Compensation
The Morning Risk Report: Conflict Risks Await Firms That Deal With Trump
As debate rages over the potential conflicts of interest facing Donald Trump as he performs the duties of the presidency while maintaining his worldwide business interests, a vital question for companies is how to navigate this terrain without becoming ensnared in ethical and compliance conundrums of their own.
Bribery
Corruption Currents: ThyssenKrupp Investigates Allegations in Israel
ThyssenKrupp is under fire over a contract to build submarines for Israel amid allegations of conflict of interest. The company said it's conducting an investigation.
Compliance
The Morning Risk Report: One Year On, U.K. Deferred Prosecutions Still Rare
One year after the U.K.’s Serious Fraud Office entered into its first deferred prosecution agreement, lawyers involved in corporate crime investigations remain mostly lukewarm about the potential advantages that such resolutions offer.
Compensation
Survey Roundup: 4 in 10 Firms Don’t Have Disaster Recovery Plan
A survey of 403 IT professionals found 40% said their organization doesn’t have a documented disaster recovery plan. Of those companies that have a plan, only 40% test it at least once a year.
Bribery
Corruption Currents: Bribery Isn’t a ‘Taboo’ For Indian Bureaucrats
Bribery "is not a taboo in a government job," an Indian bureaucrat said.
Bribery
The Morning Risk Report: Data-Sharing Hindered By Privacy Laws
Using technology to share data was a discussion point at last week's Fintech Festival in Singapore, but one speaker also expounded on the challenges to such sharing.
Reputation
Crisis of the Week: Election Frustration Generates Heat for Grubhub CEO
GrubHub Inc. is feeling the glare of the crisis spotlight after its chief executive, Matt Maloney, told employees in an email that if they backed the “nationalist, anti-immigrant and hateful politics of Donald Trump” they should “reply to this email with your resignation because you have no place here.”
Compliance
U.S. Targets Islamic State Logistics Officials, Shining Path Leaders With Sanctions
The U.S. on Tuesday imposed sanctions on officials allegedly involved in logistics issues for Islamic State, and on leaders of Shining Path, a Peruvian group.
Compliance
Does Trump Spell End of ‘Era of Compliance’?
What does the future of compliance hold now that Donald Trump is going to be the next U.S. president? Is compliance dead--at least for the next four years? Risk & Compliance Journal asked some leaders in the field of compliance what they think will happen to the profession during a Trump administration.
Bribery
Corruption Currents: BP Ring-Fences CEO Out of Potential Iran Deals
BP PLC created a new executive committee to explore business in Iran that ring-fences its American CEO to avoid potential violations of U.S. sanctions still in place.
Bribery
The Morning Risk Report: Prepare for Proxy Access 2.0
Governance experts predict shareholders will not only file resolutions for the right to nominate a director at companies that haven’t already adopted such bylaws but will also push for changes to the recently implemented proxy access bylaws.
Fraud
Financial-Crime Enforcement May Stay Strong Under Trump
The incoming Trump administration may take a hard line on financial crime, contrary to the perception that it would be friendly to banks, experts said.
Latest News
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U.K. Passes Broad Surveillance Bill That Critics Say Goes Too Far WSJ
A sweeping British surveillance bill passed into law Tuesday, in an overhaul of spying powers that will require communications companies to keep records of every website and messaging services that individuals have accessed for a year.
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Trump Signals Big Health Policy Changes Are Coming WSJ
In tapping Rep. Tom Price and Medicaid consultant Seema Verma for top health positions, President-elect Donald Trump is signaling that he intends to put conservative health-policy goals at the forefront of his administration.
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U.K. Proposals Aim to Strengthen Corporate Governance WSJ
The British government outlined new proposals meant to strengthen corporate governance, including measures designed to reduce excessive executive pay and make large privately owned businesses meet the same standards as listed firms.
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China Looks to Loosen Job Security Law in Face of Slowing Growth WSJ
China is preparing to roll back some job-security protections for workers to keep companies afloat as growth slows. But weaker laws may exacerbate social unrest that is already swelling as factories close.
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Leading Questions: Inside the Trump University Settlement WSJ
A lead lawyer for consumers suing Trump University for fraud talks about what led to a $25 million settlement.
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MTS Systems Delays Fourth-Quarter Report on Potential Violations in China WSJ
MTS Systems Corp. said it is investigating possible corporate violations by its leadership in China, and will delay releasing its full quarterly and annual reports.
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Chinese Developers Reassess U.S. Projects WSJ
Some Chinese real-estate developers are lowering their profit expectations on U.S. projects or shelving them entirely as frothy prices and rocky partnerships force them to rethink the American market.
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Monte dei Paschi’s Future Hangs on Sunday Vote WSJ
An Italian referendum on Sunday could derail Banca Monte dei Paschi’s rescue plan. That in turn could complicate Italy’s efforts to clean up its banking sector.
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South Korea’s Scandal-Hit Leader Says Legislature Can Decide Her Fate WSJ
South Korea’s embattled President Park Geun-hye said for the first time that she was willing to leave office early if lawmakers can agree on a suitable transition, opening the door for her departure before her term ends in early 2018.
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Brazil’s Vale Hopes for Samarco Mining Operations Restart in Mid-2017 WSJ
Brazilian mining giant Vale SA says it hopes to restart operations in mid-2017 at its Samarco Mineração SA joint venture, which has been shut down since a dam failure killed 19 people in November 2015.
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U.K Proposes New Executive Compensation Rules WSJ
The U.K. government on Tuesday published a consultative report chock-full of potential corporate governance reforms that could align the country more with executive compensation practices in the U.S.
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Trump Son-in-Law Could Face Conflict-of-Interest Questions WSJ
The real-estate company controlled by Jared Kushner, Donald Trump’s son-in-law, has hundreds of millions of dollars in loans from domestic and foreign banks. Those and other financing arrangements could draw fresh conflict-of-interest scrutiny even if he is an unpaid adviser to the president-elect.
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Attack Crashes Deutsche Telekom Internet Routers WSJ
An attack hit nearly one million home internet routers of Deutsche Telekom customers, knocking them offline, the latest in a string of similar events that have revealed vulnerabilities in home devices connected to the internet.
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Nissan, BMW, Porsche Face South Korea Sales Ban WSJ
South Korea plans to ban sales of some cars made by Japan’s Nissan and two German auto makers—BMW and Porsche—after it found the companies manipulated documents to make their vehicles roadworthy.
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Companies Plan to Dole Out Fatter Holiday Bonuses WSJ
About 75% of surveyed human-resources executives say their companies will give their workers extra cash for the holidays this year, up from 67% last year. The average bonus is expected to rise to $1,081 from $858 in 2015.
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Implant Sciences Holders Move Forward With Platinum Partners Investigation WSJ
Implant Sciences Corp. shareholders received the green light to investigate the company’s dealings with hedge-fund investor Platinum Partners.
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U.N. Poised to Tighten Sanctions on Pyongyang WSJ
The United Nations Security Council on Wednesday is set to adopt a U.S.-led resolution aimed at slashing North Korea’s coal export revenues by 60% in response to the country’s nuclear test in September, U.S. officials said.
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Mexican President Yields to Criticism Over Independent Prosecutor WSJ
Mexican President Enrique Peña Nieto has proposed a change in the recent overhaul of the judicial system to put the appointment of the country’s first independent prosecutor in the hands of the Senate.
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Apple Wins Battle With Banks Over Mobile Payments WSJ
Australian lenders have been trying to force the tech company to offer them access to its Apple Pay technology, which allows smartphones and tablets to communicate with payment terminals.
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Business Insider President and COO to Depart Company WSJ
Julie Hansen, the president and chief operating officer of Business Insider, will depart the digital media company to join a start-up.
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Uber’s ‘Not a Taxi Company’ Defense on Trial in EU WSJ
The stakes couldn’t be much higher, as the company fights being regulated as a transportation provider in the European Court of Justice, its business model effectively on trial.
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Former New York Judge Charged With Reducing Fine for Sexual Favors WSJ
Delmar House was justice for Jefferson County’s Village of West Carthage near the Canadian border.
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Mozido Founder Pleads Guilty to Making Illegal Campaign Contributions WSJ
Michael Liberty, the founder of one of the most highly-valued U.S. financial-technology startups pleaded guilty this week to making illegal contributions to a presidential campaign five years ago.
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Zenefits Hit With $7 Million Fine by California Insurance Regulator WSJ
Health-benefits broker Zenefits was fined $7 million by the California Department of Insurance on Monday, one of the largest penalties the agency has assessed for licensing violations in its history.
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Samsung Tries to Appease Investors But Delays Big Changes WSJ
Samsung heir Lee Jae-yong is betting that more dividend increases and a new independent director will buy time, as calls grow for a restructuring of South Korea’s biggest conglomerate.
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Trump Chooses Tom Price as Health Secretary WSJ
President-elect Donald Trump has chosen top officials for health-care policy, picking House Budget Committee Chairman Tom Price (R., Ga.) as secretary of the Health and Human Services Department, the sprawling agency that will likely dismantle Democrats’ 2010 health-care overhaul.
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Big Names Take Hit on Theranos WSJ
Blood-testing company got much of its funding from high-profile private investors who weren’t part of the ecosystem that typically backs startups and could see their stakes wiped out.
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Chicago Stock Exchange Reveals Chinese Investors Seeking to Buy Trading Outpost WSJ
The Chicago Stock Exchange, seeking to revitalize its business under new foreign owners, revealed the investors who are backing its bid to become a bridge between U.S. and Chinese equity markets.
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Fed Official Hopes Bank Regulations Survive Under Trump’s Administration WSJ
If President-elect Donald Trump’s administration seeks to roll back new banking rules adopted since the financial crisis, it will likely find regulatory staff open to smaller changes but still advising policymakers to keep the broad framework of the post-crisis regime.
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Drug, Medical-Device Bill Headed for Floor Votes WSJ
The $6.3 billion measure could provide an infusion of money for biomedical research and opioid-addiction therapy while taking steps favored by drug and medical-device companies to ease federal approvals of their products.
CONTENT FROM OUR SPONSOR
DeloitteRisk management, strategy and analysis written and compiled by Deloitte
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Cyber Resilience: Health Care’s Best Defense
The digitization and interconnectedness of health care services and providers—including patients and their health records, clinicians, administrators and medical devices—have turned the industry into a leading target of cyberattacks. As of July, health care attacks constituted 34% of all reported breaches, more than any other industry. To address this constant threat, health care organizations should consider adopting a strategy of resilience, acknowledging the inevitability of attacks and focusing on rapid detection, response and recovery. Learn the crucial elements of making a shift toward cyber resilience.
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Mid-market Organizations Cite Data Security as Their Top IT Priority: Survey
Mid-market companies are closing the gap with their large-company counterparts in terms of embracing a variety of new technologies, from augmented and virtual reality to the Internet of Things. At the same time they have significant concerns about data security—so much so that it ranks as their top information technology priority, according to findings discussed in a new Deloitte report, “Technology in the Mid-Market: Taking Ownership.” Survey results reveal that security is proving more perplexing than the race to keep up with new technology or even the budgets to pay for innovation.
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The Board’s Agenda: Preparing for the New CEO Pay Ratio Disclosure Requirement
The Securities and Exchange Commission recently issued five Compliance and Disclosure Interpretations to address a number of issues raised by companies about the CEO pay disclosure provision of the Dodd-Frank Act. While it is possible the new Trump Administration and Republican Congress could rescind this provision, it is still advisable that management plan to be ready to comply with the new rule and consider providing the Compensation Committee with a preliminary assessment of the estimated pay ratio and median employee compensation in Spring, 2017. Learn more about the key components of the provision, including considerations for board directors.
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Getting Ahead of Disruption: GameStop CEO Paul Raines
Working in an industry that faces almost constant disruption isn’t an easy task. But it forces executives to think creatively about new business opportunities, says Paul Raines, CEO of GameStop. The key, however, is to do something about disruption ahead of the changing environment. Mr. Raines discusses the company’s diversification strategy and how the organization has found ways to stay ahead of disruption in the gaming industry in this podcast with Mike Kearney, an Advisory partner in Deloitte & Touche LLP and leader of the Strategic Risk Services practice.
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How Internal Audit Can Strengthen Its Role: Global Study
In many organizations, internal audit lacks the influence, skills and tools to develop critical capabilities, such as anticipating risk and implementing responses, presenting for the function what amounts to an evolutionary challenge, according to a global study of more than 1,200 chief audit executives (CAEs) surveyed in 29 countries across eight industries. In less than a generation, the business world has been transformed in terms of method, markets, technologies, regulation and risk: Learn the specific ways in which the internal audit function will have to evolve to meet these needs and considerations for organizations as they prepare to catch up.
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China Spotlight: Supply Side Reform and Considerations for Multinational Organizations
It remains to be seen how widely and quickly Supply Side Reform (SSR), intended to help solve China’s overcapacity in core industries will be implemented. Because SSR could have significant impacts on China’s fiscal resources and foreign trade policies it is important that finance chiefs and other senior executives of multinational companies active in China track its implementation carefully. They can also consider steps to address possible negative impacts and growth opportunities SSR could pose for their China business activities and operations.
Global Risk Map
Click to see corruption measures by country