Three Key Parts to Any Plan for Crisis Management

Chief Compliance Officers are crucial to effectively running a business and dealing with any compliance issues that might pop up. While keeping in compliance with such laws as the Foreign Corrupt Practices Act can be difficult, not being prepared to deal with a violation when it does occur will lead to more problems in the long haul, according to Being a crisis manager is a big responsibility, but effectively dealing with your company’s compliance program and any violations that might derive from that is of paramount importance. The responsibility of the corporate crisis manager in a compliance violation is threefold.

1. Education: First, they must educate upper management and the board of directors that no matter what the state of a company’s best practices compliancy program, a compliance crisis can still occur. When a crisis does happen, the Chief Compliance Officer (COO) must teach management how best to respond.

2. Preparation: To prepare for a compliance crisis, the CCO should work in conjunction with management to come up with a general attitude on how the company will react to a situation. Be sure that whatever philosophy the CCO and management come up with has the approval of the board of directors.

3. Response: When responding, company officials need to be timely. There are response times that need to be met when a compliance issue is discovered, and having a response, or at least a strategy, ready ahead of time will allow your company to respond quickly and more effectively.

A representative should be designated beforehand to handle any issues that might crop up. In this way, your company will have only one person distributing information about the crisis.

Educating your management about a compliance crisis, preparing an approach in league with management to a violation should one occur, and responding quickly and effectively can go a long way toward recovering from a noncompliance event.

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