What Are Some Corporate Enforcement Myths?

This time Eric tackles some common (and stubborn) myths about regulatory enforcement and criminal liability. First, we tackle the “Trump Factor”, and the notion that reduced regulation and enforcement is on the way. Eric talks about what we really are seeing with enforcement and the statements coming from regulators and prosecutors, including the USDOJ. Eric also points out the long lead times for investigations and actions means that we are unlikely to see this effect anytime soon. Additionally, it’s important to remind ourselves that the costs associated with misconduct issues, internal investigations and ongoing enforcement inquiries can pile up. Eric also mentions using data, such as sentencing statistics, to show that the rhetoric doesn’t match the reality. We also talk about a long-standing myth that some organizations are “too small” to be noticed by regulators and prosecutors. Eric debunks this often-repeated myth and cites the US Sentencing Commission statistics that show small organizations take the biggest hit more frequently than larger organizations. We also talk about how organizations in non-highly regulated industries still have liability and face similar consequences. Finally, Eric also talks about the myth that there are only few issues and risk areas that an organization faces. We discuss just how important is is to understand your organization’s specific compliance risk profile.