Startups and small companies are in an enviable position: They can launch their ethics and compliance programs the right way. M ost of us who are reading this will be in the compliance and ethics business compliance programs helps young companies navigate intricate 33% of respondents said they reinforced their risk controls in the areas of sanctions and trade controls — down from 45% in our 2023 results — despite the ongoing
legal and regulatory frameworks, shielding businesses from potential pitfalls, safeguarding their reputation and promoting an ethos of ethics and compliance. Equally important but building on a basic E&C program is a solid third-party risk program. LRN’s most recent program effectiveness report showed a renewed interest and focus on risk identification, management and mitigation, illustrating another key characteristic of effective E&C programs. Interest alone doesn’t equal risk mitigation Even with an increased focus on the global risk landscape, only
— many from large publicly traded companies; others will be running compliance operations in smaller, private companies. Some will have just jumped the gap between private and public and are preparing for their new public life, and some will have just started their compliance journey. But very few will be in a compliance function at a startup. I wrote last year about how I believe that many startups overlook traditional ethics and compliance, viewing them as cumbersome burdens suited for more established entities. But implementing foundational
wars in Ukraine and the Middle East and enhanced government sanctions on China, Russia, Iran and other countries. So, what example are we, the established E&C programs, setting for our new, fresh startup and IPO market? Are we stuck in the compliance functions of the 2000s or can we rise to the challenge of embracing data and analytics? Our research shows that top-ranked programs go beyond the basics, are accessible to employees and prioritize enhancements to meet new and emerging global risks. For instance, top-performing
10 | April/May 2024
Full Steam Ahead
CCI Magazine
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