“Having a poor compliance or crime prevention system is the same as having nothing (with the only apparent advantage of having saved counseling costs).”
As an example of the above we can mention the case of VW in the year 2016, where I handle diesel vehicles with special software:
VW systematically manipulated diesel vehicles with special software that allowed it to pass the US emissions tests in a manipulated manner and without meeting the specifications of the EPA.
Consequences:
A 31.08% drop in the German stock market, which represents a loss of approximately 24.51 billion euros ($ 22.085 billion) in the capitalization value, Reuters.
$ 18 billion US EPA fine facing the United States
11 million: cars around the world that could be affected and that could be called to be modified software, 500,000 units were sold in the US since 2009
Possible consumer demands (amount not estimated)
Damage to the corporate image of the main German car dealer
The fall of its CEO, Martin Winterkorn, just 48 hours before the extension of his contract.
The worst crisis in Volkswagen history
In my personal opinion Like everything in life, the idea is to add do not divide, if we divide we subtract the value that we must generate in our organizations. In the Compliance area, you should not only talk about lawyers against management system consultants, but also people specialized in risk management, organizational culture and development, and project management and management (among others).
The organizations should avoid falling into the error of the struggle of criteria, which over the last years is being carried out to defend the following postulates:
To count on the services of a team of lawyers since “they really are the ones that know of legislation and fulfillment” demonizing the figure of the consultants.
Can a Consultant, with no experience of laws, jurisprudence and the like make a good identification of risks of application in the legal field, etc.?
The need for consultants in management systems since “lawyers do not know systems”.
Can a lawyer with no experience in developing and implementing management systems advise on the complex application of controls, indicators and information that a system of this type should contain?
An effective management model must be an integral and balanced system, which considers in its parts both the legal area and consultants of different areas of knowledge, including of course those related to management systems, which would require individually or in The following knowledge and experience:
Legal training and experience in the area of compliance in question
Training and experience in Management Systems in general and the area of compliance in question
Knowledge of risk management and its standards, such as: ISO 31000, ISO 31004 and ISO 31010, COSO, COBIT, etc.
Knowledge in Project Management and Management, ISO 21500, PMBOK, etc.
Developmental knowledge and organizational culture.
Solid knowledge of ISO 19600 (Compliance Management Systems)
ISO 19011 domain (for system effectiveness audit)
Knowledge in specific standards depending on the Compliance area in question.
In addition to the above points, a comprehensive risk management model should be established, such as:
THE RISK MANAGEMENT MODEL Neural Risk:
goals
General objective:
Incorporate in the organization a practical, structured and effective model that reduces uncertainty consistently increasing the probability of achieving the strategic objectives or specific projects are carried out.
Specific goal:
Eliminate barriers and obstacles that limit the achievement of objectives and targets, and reduce the negative effects of:
Lack of compliance with established operational objectives and targets.
Incorrect decisions to use incorrect, untimely, incomplete or unreliable information.
Exposure to financial losses.
Failures and errors in safeguarding assets.
Customer dissatisfaction, negative publicity and damage to the reputation of the company.
Failure to comply with policies, plans, procedures and regulatory framework.
Acquisition of goods, in an uneconomical way, or ineffective use of resources and inefficiency