Duty of Oversight, Part II


Today let’s take a closer look at that Delaware Chancery Court decision from last week that established a “duty of oversight” for corporate officers. It’s another evolutionary step in the oversight of corporate culture, which is always something corporate compliance and audit professionals need to watch closely. The decision involved the former head of HR…

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More Compliance Lessons From Elon


Elon Musk is the gift that keeps on giving, providing one example after another of how an executive can blunder forward without considering — or maybe just ignoring, who really knows — the ethics and compliance implications of his or her decisions. What lesson does the chief twit offer now? Read on. The immediate news…

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The One Super-Big Lesson of FTX


People keep asking me what lessons the compliance and audit community might learn from the spectacular collapse of cryptocurrency platform FTX Corp. The more I contemplate FTX’s shortcomings, however, the more I believe the answer to that question is simply “all of them.”  Just read the bankruptcy petition filed on Nov. 17 by newly named…

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Governance Gone Wrong, Wrong, Wrong


Compliance officers talk all the time about ESG issues these days, but rarely do we have a chance specifically to explore the governance challenges that fall within that broad realm. Now we have three examples of governance gone wrong to consider, all within the space of one week. First is Tysons Foods, whose namesake CFO…

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SEC’s Push for Better Cyber Governance


Today I want to revisit the SEC’s proposed new rules requiring public companies to disclose more about their cybersecurity risks. Those plans would obligate companies to discuss how the board and senior management address cybersecurity risk at a strategic, enterprise level. What’s that all about?  In a previous post about the SEC proposals, I considered…

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Tesla’s Governance Issues Keep Coming


Compliance officers, today we all owe a thank you to California state labor regulators. Why? Because we’re always looking for examples of poor corporate governance to discuss, and those regulators served up a stunner at the end of last week: Tesla.  You may have already heard the basics. Last Thursday the California Department of Fair…

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Ozy Media’s Governance Flop


You may have missed this, but last week a media business with oodles of funding from Silicon Valley closed up shop because of flawed leadership behavior that culminated in accusations of fraud. Which gives us yet another opportunity to talk about the importance of board governance to keep leaders’ ethical conduct correct. The media business…

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Jerry Falwell and CEO Oversight


The Lord works in mysterious ways, and compliance professionals witnessed that again this week. The Supreme Being sent us a flock of governance lessons to consider from the downfall of Jerry Falwell Jr., who just resigned as president of Liberty University amid a sex scandal. Falwell had been leader of the evangelical college since 2007.…

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Governance Lessons From the Postal Service

Postal Service

Radical Compliance always strives to find the latest, best illustrations of corporate governance gone wrong that we can dissect for lessons everyone else can learn. Today we have a gem: the U.S. Postal Service.  By now you probably know at least the contours of the story. The U.S. Postal Service is a money-losing operation, and…

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IIA Unveils New Three Lines Model


The Institute of Internal Auditors has unveiled a revamped version of its famed Three Lines of Defense model for risk assurance. Perhaps the most notable change: no longer calling it the Three Lines of Defense.  Instead, the IIA guide is now officially known as “The Three Lines Model” — a nod to criticism over the…

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