Hello. It's my absolute pleasure to welcome you to this Certified
Compliance Risk and Internal Control Manager Training Program.
I'd like to introduce the course to you and to set out what it is
that we'll be going over for the several hours that you'll be
taking this training course.
In our first module, we'll be introducing the course.
And in fact, in doing that, we will be looking at the complex
and sophisticated markets in which we find ourselves in today's business world.
I'd like to please note that although the course is for compliance
and internal control managers throughout different industries,
we focus specifically on financial services in that area.
We're also going to be looking at the challenges and conflicts
of interest that arise, especially in these complex
and very sophisticated markets that we find ourselves
once we see those conflicts.
We could better understand the need for internal controls
and for compliance frameworks.
In fact, one of the questions that we're going to ask is exactly that
Why isn't this working?
Exactly why is it that we continue to see the scandals and the financial fraud
and other types of business conflicts that constantly go well?
We're going to start to look at the frameworks, the structures and the
principles in order to make effective compliance organizations.
In fact, we're actually going to see that the culture of compliance
and very definitive drivers of an effective compliance culture
will be at work when we build these effective compliance departments.
We're going to look at the various areas in compliance departments,
the skill sets required, the areas, the types of managers and the
the skills and the qualities and the capabilities
that many of the folks in those areas would clearly need.
And finally, we're also going to be looking
at some case studies and conducting some exercises
in order to make sure that what you've learned will continue.
Welcome. It is my absolute pleasure to welcome you to our course.
Uniquely Compliance The Certified Compliance Risk
and Internal Control Manager Training Program.
My name is Mario DiFiore.
And as we begin our course,
I certainly would like to put this into perspective.
All of us are very aware
that no matter what business we're in, whether it is a business
where we buy and sell goods, services and things,
or whether it is part of the financial markets,
whether it's trading investment banking sales, trading research,
stock, asset management, portfolio management, whatever it is.
Our businesses demand success.
In fact, if we were to look at profitability,
we would say, yes, of course, we all want to be profitable
and we all want to be successful on an individual basis.
Of course, we all want to be profitable.
We all want to be successful.
And even on an organizational basis, all of us want our organizations
to be profitable and we want them to be successful as well.
Well, did you know
that academic research as well as professional practice.
All evidence the same issue,
and that is the successful businesses comply.
What exactly do they comply with?
They comply with the laws, rules, regulations, the ethics
codes of conduct, good corporate governance and best practices.
Indeed, that is exactly where we want to start our course
to understand that profitability is a given
for all of us in the business world,
whether it is on the commercial side of things,
whether it is on the financial side of things.
Yes, of course, profitability is key and critical to our success.
But no matter how we look at this,
the academic research is 100% clear.
And those of you in professional practice know this for a fact as well.
And that is that
for a business to be successful, it absolutely,
categorically needs to comply
with the rules, regs, ethics, codes of conduct, good corporate
governance, and the best practices within the industry.
Now, if we could put this into even a little bit of further perspective.
I think we know that our markets, our products or services,
they are not, as you could see on this line,
rather linear, where everything goes in a straight line
and we can get a ruler and plot it out.
In fact, much more often it's a curved line
and it's a line that does not follow a very straight and linear path.
In fact, if you look on the right hand side of this slide,
you could see in the welcome alone, it's not only that business,
it's not straight, linear, definitive,
but rather it's all over the place.
It is dynamic in so many different levels,
and it is that way for so many reasons.
Due to technological advances. Things like.
Artificial intelligence algorithms.
Machine learning technologies.
Whether geographic
items that might impact the way that we do things,
cognitive things, in other words, the way that we think and learn
and so forth on the work place or in the workplace,
quantitative advances
using technology, sciences
and so on, and even social advances
impact the methodologies that we might use in our businesses.
All of it, whether it's in a business that makes widgets
or whether it's for crypto, central bank, digital currencies, ETFs,
derivatives, algorithms. Any of that?
I think we know that our businesses are dynamic
and because of that dynamism.
We need to understand a heck of a lot more
than just a couple of formulas that help us forecast the stock price
or help us forecast the price of a good or service.
Now. That's just part of the issue.
The profitability is definitive.
But in addition to the profitability,
we have a lot more that we have to deal with and that a lot more
is making sure. That we have
a playing field, appropriately governed, well-regulated.
And that it is ethically oriented.
So now that begs the question
that I'm going to get to start this program.
And that is so how do we prepare?
Profit, but ethics,
profitability, liquidity with compliance and regulation
and best practices has to be followed.
Is there a balance?
No. There can never be a balance because the issue is it's not that
we pick and choose the laws and the rules that we have to follow.
We need a comprehensive program in order to make sure
that all of the laws, rules, regulations, best practices,
ethics, good corporate governance are being followed.
So let me ask you, how are you prepared?
How do you strategize?
How do you execute?
How do you carry all of this out in order to support our mission?
Well, I'm very glad that
one of the things that you did in order to prepare and strategize
and execute and support your firm's mission,
is to take this certification training course.
That is for you to understand
the uniqueness of compliance,
to course specifically designed
for certification for compliance risk in internal management.
What would we then want to look at in this course?
Well, before we go ahead with that,
let me just make a bit of a short introduction.
First, I definitely want to welcome you to this course
now that we have a little bit of background in where we're going.
But if I were you, I wouldn't want to take this course
unless I knew exactly who it was who was trying to offer
this training to me, this educational background to me.
So indeed, my name is Mario DiFiore.
I am, in fact, the dean and a professor here in New York
at Fordham University's Gabelli School of Business,
one of the top great business schools here in the United States.
I'm also the editor in chief, and I'm
also a journalist for the Journal of Financial Compliance.
This is a peer reviewed, both
academic and professional journal,
specifically in the area of financial compliance.
I'm a former Wall Street training director.
I was the global head for compliance and risk trading
for the commercial and investment bank Deutsche Bank.
Most of you know that organization.
Further. I'm a currently I'm an international consultant as well
as being a professor at Dean of Finance and Business Economics.
And I had a 12 year run at the Federal Reserve
or Central Bank here in the United States where it was.
I had many positions.
I was in research and statistics.
I was the senior international representative
of the Federal Reserve, and I also was the deputy director
of the Public Information Department, where I ran the press conferences
and I conducted all the communications work
regarding the Federal Reserve.
In fact, I, I actually was the press spokesman
on a number of the press conferences that we had.
That's who I am.
But what are we going to cover for the course if we're
going to introduce this course?
Well, we got a couple of things that we're going to be doing,
but I think you could see all of them are quite hard hitting.
In fact, none of them are high level pie in the sky.
The first is we're going to on the outset understand
the difference between compliance with the Upper Case and compliance
with the lower case, one firm wide,
the other, you specifically.
We're going to look at the prime directive.
Do you know that most academic research that studies
this points to the same conclusion,
and that is what a firm can demonstrate,
not window dressing
with actual culture of compliance
that is almost built
into the DNA of the organization and the people who work for it.
A culture to comply
to comply with corporate governance,
to comply with ethics best practices within the industry.
Rules, laws, regulations.
That Prime Directive.
One of the things we see is that that culture of compliance
is one of the main drivers of a successful firm.
In fact, we're going to see a great case study, Barclays
Bank built on that exact issue.
The three lines of defense.
We're going to look at that.
A compliance line of defense is not just unilateral.
We see it on three different levels.
The business line that owns the risk,
the compliance and the control groups that support that.
And then ultimately the audit folks that audit against all of that.
We're next going to look at the development for you
of a comprehensive, effective compliance program.
What are the elements of an effective compliance program?
We're going to look at several items in particular
specialty documents and
research papers that came out from the BIS,
the Bank for International Settlements, an organization
that I like to call the Central Bank of Central Banks around the world.
We're going to look at that.
We're going to look at a number of other best practices, documents
for effective compliance in the workplace.
In addition to that, we're also going to start looking at
if we know what our overall program
should be and the main components of that program.
What are the metrics, the KPIs?
That is key performance indicators, key risk indicators
that actually help us measure how closely that we are
to accomplishing that effective compliance program.
We're also going to look at specific
types of crimes, financial crimes, areas
where violations of laws and rules would occur.
Now, please understand, violations of laws
and rules are not necessarily all the financial crime with the
the shaky looking character on the corner sort of thing.
There are often times where it happens with folks
that look just like you arrived in a business suit, in a button down
shirt, in a nice dress and so on in a business suit and so on.
It could also happen
when folks don't even understand that they're violating laws.
Rules and regulations could be both purposeful,
and it could also be accidental.
We're going to look at one of the most
comprehensive types of financial crimes out there,
and that would be the crime of money laundering.
Of course, we're going
to be looking at it in terms of anti-money laundering.
But we're going to be looking at one of the most pervasive
of the financial crimes that are out there
that involved in money laundering.
What I then want to do is once we have all that,
I want to put it together in a way that many of us could see
the internal relationship
within the organization of the risks.
Finding that compliance risk
is one of the key risks of that organization
and can be seen interrelated throughout the organization.
Now we can have all that.
We can understand the overall program,
the policies, the procedures we could measure against those.
We could understand the individual financial crimes
like money laundering or insider trading and all that.
We could understand that risk is tied throughout the organization.
But unless we could align
where our mission of the firm.
The mission of our risk groups and the mission of compliance.
We're going to ultimately be going in a whole bunch
of different directions.
So we want to want to really make
concrete the alignment of those missions
so that the compliance program works smoothly and appropriately.
I'm going to then start rounding it out a little bit
more and looking at some focused awareness.
I want to look at things like cyber crime.
I want to look at what we tend to call the rise of regtech.
That is the use of technology
in regulatory compliance.
And finally, we want to end this with an understanding
of the investigations that we would have to undergo
in the skill sets required in those investigations.
That's really the agenda that we want to look at
and that's where we want to go.
So are you with me? Are you ready?
Are you absolutely ready to become a certified compliance
risk in internal control officer?
If so, let's start.