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Compliance Teams Worried over Governments Increased Scrutiny

Posted by: Chris Duden | May 9, 2016

Home/ Blog / Compliance Teams Worried over Governments Increased Scrutiny

Due to US federal investigative and enforcement initiatives, 81% of compliance officers have fearful anticipation when it comes to their personal liability in situations such as privacy and cybersecurity. CCOs Under Scrutiny, the latest DLA Piper’s 2016 Compliance & Risk Report which was in context to the publishing of the Yates Memo, which outlined a plan that clearly mentions  plans to prosecute individual corporate employees and incentivize reforms.

The DLA report was backing up Justice Department’s appointment of Hui Chen as it’s first-ever compliance counsel.


“Between the DOJ’s memorandum and the SEC’s latest initiatives, there’s considerable rhetoric driving the government’s renewed focus on corporate misconduct and the prosecution of company executives,” said Brett Ingerman, co-chair of DLA Piper’s Global Governance and Compliance practice. “The most revelatory parts of this survey lie in the specific feedback from compliance officers who are facing increased personal accountability for organizational misdeeds whether they perpetrated the wrongdoing or not.”

The survey also portrayed a bleak picture of CCOs working in private companies within the most heavily regulated industries as being gravely concerned. A quarter of the participants share grievances of not enough resources and in keeping up with the pace of the changing regulatory compliance landscape. Responses mostly revolve against Hui Chen’s position as almost 99% believe an upsurge in the scrutiny of compliance programs. A full 77% of respondents believe Chen will intensify the pursuit of cases against CCOs.

According to one CCO in the report: “If it’s a higher-risk company or one with a prosecutorial history, you’re going to weigh the risk of whether it could destroy your career and your personal life.”

“Given the high stakes involved, it’s imperative that compliance officers identify and address new risk areas and blind spots in order to promote ethical and compliant business cultures, but also to protect themselves against the potential legal action,” Ingerman added.

So what were great compliance concerns? Respondents were deeply concerned about data privacy, cyber security and regulatory risk (Dodd-Frank, ACA, and FCPA).


Source: Tara Seals of Infosecurity Magazine

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