“IS THE BPO INDUSTRYREADY FOR EXTERNAL COMPLIANCE FOCUS?”

WHAT IS THE ISSUE TODAY?

2

3

THE COST OF NON COMPLIANCE IS TOO BIG TO IGNORE

To date, what percentage of your firm’s total operating costs is allocated to regulatory compliance (technology, headcount or strategy)?

- KPMG REPORT on the COST of Compliance 2013

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INCREASING PUNITIVE ACTION BY GOVERNMENTS AND INTERNATIONAL REGULATORS

NAVEX Global – 2013

THE TONE OF GLOBAL COMPLIANCE

THE TONE OF GLOBAL COMPLIANCE

- Accenture Compliance Study Report

MONITORING & MAINTAINING OF COMPLIANCE RISK WITHIN ACCEPTABLE LEVELS

BUILDING OF COMPLIANCE RISK MANAGEMENT MODELS AND THEIR PERIODIC VALIDATION

ADDRESSING THE IMPACT OF THE CHANGING REGULATORY ENVIRONMENT

REPORTING OF COMPLIANCE RISK

IMPLEMENTATION OF COMPLIANCE RISK MANAGEMENT MODELS ACROSS BUSINESS LINES

ASPECTS OF COMPLIANCE RISK MANAGEMENT THAT WILL DRIVE THE GREATEST DEMAND FOR INCREASED COMPLIANCE RESOURCES IN THE COMING YEARS (GLOBAL)

DEMAND DRIVERS FOR COMPLIANCE RESOURCES

- Accenture Compliance Study Report

COMPANIES SEEM UNCERTAIN ABOUT THE TYPE OF RISK FUNCTION THEY HAVE CREATED

5.

44.

17.

13.

Successful Implementation

Implementation is difficult

Beginning implementation

Current structure/processesmeet our needs

44%

Source: IntegTree (2014) www.IntegTree.com Why Invest in Ethics & Compliance Programs Dr. Nitish Singh & Thomas J. Bussen (J.D./MBA) - http://www.slideshare.net/NitishSinghPhD/why-comply

COST OF NON-COMPLIANCE

US DOJ COLLECTED IN 2011 ANTI TRUST FINES$1BILLION

BIOMET FINED IN 2012 BY DOJ FOR FALSE RECORD KEEPING AND BRIBERY.

$23 MILLION

MAXWELL TECHNOLOGIES IN 2011 PAID IN PENALTY FOR FCPA VIOLATIONS

$8 MILLION

AMOUNT JOHNSON & JOHNSON WAS ORDERED TO PAY IN PENALTIES

$1.1 BILLION

EU FINED MICROSOFT FOR NON-COMPLIANCE WITH 2004 ANTITRUST ORDER

$1.35 BILLION

IS THE PHILIPPINESUNDER THREAT?

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The Privacy Act applies to all acts or practices within

Australia in respect of personal information about individuals wherever those individuals may reside.

Accordingly, personal information of persons outside Australia that is held on servers located within Australia is regulated by the Act. The Act extends to any use outside Australia or

disclosure from Australia of personal information that has been

collected within Australia.

This introduces the concept of Extraterritoriality

Data protection and Privacy is a pressing issue for:

1. United States

2. United Kingdom

3. Australia

4. Singapore

BAD NEWS IN THE BPO INDUSTRY

THE PROBLEM FOR ORGANISATIONS

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EMPLOYEES EMPLOYEESEMPLOYEES EMPLOYEES

••

•

THE RESULT

The Board and the Regulator’s voice is lost because of the

disconnect between, Vision, Content and Delivery.

PROBLEMS BUSINESSES ARE FACING

Board’s visibility to the activity is BLOCKED

Management is CHALLENGED TO SWIFTLY ROLLOUT THE INITIATIVE

Compliance Training Content is OUTDATED and TIRESOME

MESSAGEDOES NOT MEET

VISIONGAPS

GOAL

THE CHALLENGE OF SUCCESSFULLY ROLLING OUT COMPLIANCE INITIATIVES

Employees

Received mixed messages and are uninterested and left in doubt

THE EXCEL BAND-AID

WHAT THE EXECUTIVE REALLY WANTS TO SEE

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ACCESSIBILITY VIA WEB & ACROSS ALL PLATFORMS

DATA ANALYTICS

EFFECTIVE

MESSAGE DELIVERY

POLICY DISBURSEMENT TO WHOLE OFORGANIZATION

VISIBILITY

WHAT THE EXECUTIVE REALLY WANTS TO SEE

ONE

PLACE

TO FIND

IT ALL

VISIBILITY

Compliance Management

Dashboard Reporting

Existing Software

INTEGRATED

Actual Number of People

Red

Yellow

Green

MEASURABLE

CONNECTIVTY WITH ANALYTICS FOR AN IN DEPTH LOOK

HOW DO YOU CREATE ACULTURE OF COMPLIANCE?

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THE POSITIVE COMPLIANCE CYCLE

BOARD’s message is shared

Compliance Goal is aligned to the message

Roll out is quick, effective and reliable

Accessible online and on mobile to reach all members regardless of location

Reporting and Tracking is accurate and in real time

Board to Frontline message is consistent and understanding is aligned This should

be a continuous

cycle

Compliance Training

Content is updated and

relevant

THE BOARD’S VISION

BOARD TO FRONTLINE VISIBILITY

Automated notifications

and alerts on SMS / email.

Be alerted in real time as

risk increases.

MEASURED DELIVERY

PERSONAL RESPONSIBILITY

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The alerts summary gives the breakdown of your

business alert status across the whole organization

WHAT IS THE MESSAGE?HOW DO WE DELIVER AND THE POWER OF THE CONTENT

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RELEVANT QUALITY CONTENT

Mobility keeps you in touch

with your business

SEAMLESS CONTENT DELIVERYACROSS ANY PLATFORM

Databaserecords and secures

the information

CONNECTIVITY

MILLENIALS AND MOBILITY:ENGAGEMENT CHALLENGES

JUST HOW BIG ARE MILLENIALS IN THE WORKPLACE?

Age structure: 0-14

years: 33.7% (male 18,493,668/female 17,753,359)

15-24 years: 19%

(male 10,416,358 / female

10,044,724)

25-54 years: 37% (male

20,031,638 / female

19,796,545)

Phillennials comprise only ¼ of Philippine population but are already 50%+ of working age

Filipinos (Rough estimates from Geobase population data)

PHILLENIALS: PHILIPPINE MILLENIALS

6%

5%

12%

33%

24%

20%

0% 10% 20% 30% 40%

> 100

> 80 - 100

>60 - 80

>40-60

20-40

< 20

WHO IS CPDone?

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THE TRUE VALUE OF COMPLIANCE

CPDoneCULTURE OFCOMPLIANCE

THANK YOU.

CONTACT US FOR A COPY OF THE

PRESENTATION