Integrity-Driven Performance. New Strategy for ... - GRC Resource

• Risk response• Control activities• Information and communication• Monitoring processesEthics and Compliance ProcessesThe United States government, through the United States Sentencing Commission, has identifiedseven elements of an effective compliance framework. These include:• Standards and procedures• High-level oversight• Due care in the delegation of authority and responsibility• Effective communication and training• Monitoring, auditing and reporting processes• Consistent discipline• Ongoing process improvementOn 30 December 2003, the United States Sentencing Commission proposed far-reaching changesto the United States Federal Sentencing Guidelines. The new recommendations emphasise theimportance of expanding the compliance standard to better address a corporation’s ethical culture;establish the governance and oversight responsibilities of the board and senior management;frame the need for appropriate resources and authority; and recommend that companies conductongoing risk assessments to form the basis for continuous improvement of their complianceprogrammes. Once again, recommendations focus on the relationships among governance,ethics, risk management and compliance.23