Intensive: Expanding the Audit Committee: Culture, Enterprise Risk, and the Board

A variety of headline-grabbing incidents in the past year—from sexual harassment scandals involving corporate executives to —have made clear the importance of “tone at the top” within any business enterprise, and the critical role that corporate culture can play in reinforcing (or undermining) efforts to ensure adherence to legal and regulatory mandates. But how can a director determine if the culture is “right”? In any large organization there will always be some individuals who behave badly, but how can a board distinguish between a one-off instance of bad behavior and an indicator of a corrupt culture? What kinds of compliance structures are effective in preventing improper or illegal behavior, or—if necessary—detecting it promptly? How can the board enhance the efficacy of those structures? This session will examine the rapidly evolving role of the compliance function in the corporation, and ways the board can most effectively support it.