SESSION 6 – Ethics & Compliance, Internal Control, and Internal Audit
Ethics & Compliance, like almost all fields dealing with human behaviour in organisational or professional environment, is a very complex area, involving knowledge that spreads from governance to training, from communication to all sorts of control mechanisms. This particularity is well represented by the various approaches to the Ethics & Compliance function in companies and its multitude of tools. For example, there are organisations that are more focused on control because they have had negative experiences. These organisations hope that by tightening the internal policies and procedures they can avoid undesirable business behaviour and practices. There are other organisations that are more inclined to use an organisational model involving more personal responsibility and autonomy in making decisions. In such contexts, internal control and internal audit are less relevant and they might coexist in a form of internal accountability system.
The role of this session is to explore the various models of combining the Ethics & Compliance function with that of Internal Control and Internal Audit., to emphasize the tension between these 3 ‘tectonic plates’.
Day 2 | Friday, November 11, 2016
Cristian DUCU, Senior Ethics & Compliance Consultant (Centre for Advanced Research in Management and Applied Ethics)
Meeting Ethics & Compliance Challenges in Financial Services
Răzvan BUTUCARU, Director, Audit and Financial Advisory (Mazars Romania)
A wave of Ethics and Compliance regulations in financial services followed the 2007-2008 financial crisis. Particularly regulations aimed at improving ethical performance and compliance through better internal supervision, greater transparency, and more honest risk assessment.
These new requirements, combined with the increased digitisation of the industry, form the background to the central inquiry in our study:
To what extent are financial services firms using digital tools to improve ethical and compliance performance?
Have financial services companies expanded their use of enhanced information technologies, such as data analytics, to comply with new regulations?
Have financial services companies expanded their use of enhanced information technologies to raise their ethical standards beyond narrow compliance?
How aware are financial services executives of the issues or problems that enhanced information technologies may raise for their companies’ ethical conduct?
Ethics Infrastructure in Corporate Governance
Marius BARLADEANU, Counsel (VILAU | Associates)
The aim of the presentation is to present the mechanisms and structures a company may consider in its efforts to protect its reputation and goodwill against acts of negative or positive corruption and other practices affecting the competition as well as the corporate governance of the company.
Preliminary risks assessments and implementation of formal prevention mechanisms and internal structures will be addressed in the first part of the presentation, while in the second part practical examples of failures in complying with business ethics rules and consequences of such failures will be detailed. Finally, a practical approach in terms of on-spot investigations and typical findings, as well as a set of remedy actions to be contemplated by a company’s management will be provided for the participants’ consideration.
Anti-Fraud Internal Controls
Cosmin SERBANESCU, President (Romanian National Internal Control Institute (INCIR))