Fcpa Compliance Report

An important part of the job duties of any compliance practitioner is clearing red flags which might appear for a proposed third-party relationship during the due diligence process. It is mandatory that not only must all red flags be cleared but there also be evidence of the decision-making process to show to a regulator if one comes knocking. The Justice Department Evaluation of Corporate Compliance Program states under Prong 10 the following, “Real Actions and Consequences – Were red flags identified from the due diligence of the third parties involved in the misconduct and how were they resolved?” There is no set formula or guideline for clearing red flags or evaluating due diligence. One approach came from two compliance practitioners at GE Oil & Gas, Flora Francis and Andrew Baird made at the 2014 SCCE Utility and Energy Conference on GE’s third party risk management, where they described the process by which GE reviews the risks around each third party with which it does business.  Some of the factors w