We review industry research and some of our own to identify: - Who are Chief Compliance Officers and their ethics & compliance peers? - What do they do and what are their core responsibilities? - What challenges do they face today? What rewards does the role bring? - Where do they think ethics & compliance is heading in the future?

1. The State of the
Chief Compliance
Officer in 2018

2. In this short presentation, we’ll review industry research and some of our own to identify:
1. Who are Chief Compliance Officers and their ethics & compliance peers?
2. What do they do and what are their core responsibilities?
3. What challenges do they face today? What rewards does the role bring?
4. Where do they think ethics & compliance is heading in the future?
5. Ways to participate and share your perspective!
Click through this presentation for some insights and facts we think you’ll find valuable,
then visit the Compliance Officer Day website for more free resources you can use today.
The State of the Chief Compliance Officer

3. Who are Chief Compliance Officers?
attended
grad school
started as
an attorney
attended
law school
Chief Compliance Officers are a diverse group of individuals
committed to promoting ethical behavior, maintaining compliance
with regulations, and helping employees do the right thing, with a wide
range of backgrounds, including law, human resources, and finance.
33%50% 33%
Source: LinkedIn

4. Who are Chief Compliance Officers?
Chief Compliance Officers tend to work longer hours and find their roles
to be challenging and stressful.
0 20 40 60 80 100
1
0 20 40 60 80 100
1
0% 10% 20% 30% 40% 50%
0ver 60
50-60
40-50
40
Job stress
as rated on a scale of 1 - 100
Job difficulty
as rated on a scale of 1 - 100
Number of hours
worked per week
Source: 2017 SAI Global Compliance Officer Wellness Survey

5. The Role of CCOs in the Past and Present
Almost 30 years have passed since the Federal Sentencing
Guidelines for Organizations came into existence, serving as a
catalyst for the creation of ethics and compliance programs that
can help prevent and detect violations of law, in 1991.
Back then, an effective E&C program was defined as an
organization that:
1. Exercises due diligence to prevent and detect criminal
conduct
2. Promotes an organizational culture that encourages ethical
conduct and a commitment to compliance with the law.
Source: Building an Ethical Culture: Why It’s Vital, How It’s Done (SCCE)

6. The Role of CCOs in the Present and Future
In NASDAQ’s 2017 Global Compliance Survey, respondents revealed that their big-
picture goal and most important function is focused on protecting reputation.
Compliance departments most important
function
in respondent’s opinion
Source: 2017 Global Compliance Survey (NASDAQ)

7. Scott Dahl, Inspector General at the U.S. Department of Labor and a former Ethics
professor at Georgetown Law, believes modern CCOs and the programs they create
possess 6 characteristics:
Incorporate
real-world
examples and
roleplaying
Focus more
on scenarios
and less on
rules
Go beyond
annual
training
sessions
Make senior
leaders part of
the training
experience
Weave ethics &
compliance into
performance
reviews
Establish
benchmarks for
measuring program
effectiveness
The Role of CCOs in the Present and Future
Source: Building an Ethical Culture: Why It’s Vital, How It’s Done (SCCE)

8. Traits and Habits of Successful Chief Compliance Officers
In our Six Questions with an Ethics & Compliance Officer
interview series we asked 18 E&C professionals to share the
three traits they believe are essential for someone in their
shoes to possess.
On the next slide, we’ll share what we learned…
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

10. The Challenges of Being a CCO today
Patrik S. Florencio, Samuele Butera, and Erik Ramanathan
have identified the three main forces driving compliance
violations today. They’re not a lack of knowledge around
rules and regulations, but:
Greed Pressure Uncertainty
Source: Building an Ethical Culture: Why It’s Vital, How It’s Done (SCCE)

11. The Challenges of Being a CCO today
Source: The State of Ethics and Compliance in the Workplace 2018 (ECI)

12. The Challenges for Ethics and
Compliance Professionals

13. Challenges: Time and Attention
“Today's workforce is inundated with communication from all
sides. An effective CCO needs to cut through that crowded
communications space to grab their audience's attention and
deliver an impactful and practical message. I only see this
becoming more important over time.”
– Seth Rice, AGC and Global Director, Ethics and Compliance at Kennametal
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

14. Challenges: Business Savvy
“To be truly effective as an ethics and compliance professional,
you need to know the business. What are the most important
risks for your business? What challenges, both internal and
external, is your organization facing? What external
requirements must you meet? What kind of culture does your
organization have?”
– Melissa Stapleton Barnes, SVP, Enterprise Risk Management and Chief Ethics and
Compliance Officer for Eli Lilly and Company
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

15. Challenges: Compliance Fatigue
“I think one of the biggest challenges for compliance
professionals today is finding creative ways to avoid
‘compliance fatigue’ – we have to be relentless and tireless in
acting as ‘evangelists’ for our Codes, and for ethics and
compliance. Also, in a very practical sense, facing the
physical challenges of a global role that can call for extensive
travel, late night calls, and presentations where you are
constantly delivering at a very high level of intensity.”
- Ana-Paola Capaldo, Director of Ethics and Compliance at Tech Data
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

16. Challenges: Trust and Transparency
“Compliance officers have to live this philosophy and ‘walk
the talk.’ This may be challenging, as the message is easy,
but its execution is not always. There are pressures and
temptations in every market. Only if I understand the
business and these circumstances, will employees perceive
me as a trusted adviser who can work with them to find
solutions to a particular challenge.”
- Patrick Henz, Compliance Officer for Primetals Technologies
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

17. Challenges: Reach and Influence
“The most challenging part is that nagging fear that I
could be doing more to penetrate the organization and
reach the masses. I’m always looking for ways to have
a greater impact.”
- Samantha Kelen, Lead Ethics Analyst at Duke Energy
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

18. Challenges: Meaningful Impact
“The most challenging part of my job is to avoid destroying
the playground. Employees perform best when they do their
work for the pure enjoyment of it. When compliance must
restrict this enjoyment by imposing policies, training,
controls, and audits, it must do so by minimizing the impact
on performance. The best way to minimize this impact is to
ensure that employees understand why we restrict specific
activities.”
- Yan Tougas, Global Ethics & Compliance Officer at United Technologies Corp.
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

19. The Rewards of Ethics and
Compliance Professionals

20. The Rewards of Being a CCO
The relationship between
an E&C program and the
culture of an organization
is critical, and the data is
clear.
A genuine effort by an
organization to address
E&C can have a
substantial effect on the
overall strength of the
E&C culture and
outcomes.
Source: Measuring the Impact of Ethics & Compliance Programs 2018 (ECI)

21. Rewards: Fostering a Culture of Integrity
“We ask people to take our medicines at some of the most
vulnerable times in their lives; therefore, everything we say
and do, and every decision we make, must be made with
integrity. So, the work we do to help foster a culture of
integrity throughout the company is key to our mission - and
that is particularly rewarding.”
- Melissa Stapleton Barnes, Senior Vice President, Enterprise Risk Management and
Chief Ethics and Compliance Officer for Eli Lilly and Company
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

22. Rewards: Practical Solutions to Real Problems
“The most rewarding parts are when I can contribute a
practical solution to a problem and help the business
do the important work of creating diagnostics in the
healthcare space. I also find it incredibly rewarding
when my team's work is acknowledged as practical,
helpful, and fun.”
- Virginia MacSuibhne, Chief Compliance Officer for Roche Molecular Solutions
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

23. Rewards: Problem Solving
“My favorite parts of my work, both former and
current, are when I am able to help solve problems
and when I am able to show people new ways of
thinking about things. I love diagnosing problems,
coming up with solutions, and getting people to the
“Aha!” moments.
– Hui Chen, Global Ethics & Compliance Consultant
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

24. Rewards: Growth and Sustainability
“By far the most rewarding part of my job is helping people
to see that ethics and compliance is not just the right thing
to do, but that it also directly supports the sustainable near
and long-term growth of the organization. People and
customers want to work for and buy from companies with
integrity and purpose. I get recharged each time I have the
privilege of watching this transformation in a colleague.”
- Seth Rice, Assistant General Counsel and Global Director, Ethics and Compliance
at Kennametal
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

25. Looking Ahead: Technology and Compliance
“Artificial Intelligence will open up new opportunities to
automate standard processes, such as contract reviews. AI
will also offer additional services like chatbots, which could be
used as a potential compliance app. The big question to
discuss is which corporate function should ensure that
tomorrow’s AI decisions are based on values, guidelines, and
laws? Due to its experience, it should be the Ethics and
Compliance department!”
- Patrick Henz, Compliance Officer for Primetals Technologies
Source: Six Questions with an Ethics and Compliance Officer (SAI Global)

26. Looking Ahead: Culture and Compliance
“After nearly a quarter of a century studying employee
perspectives of ethics in the workplace, ECI has proven that if
companies do not take the steps that improve their workplace
cultures, conduct among employees will decline. In light of the
worsening of two key indicators (pressure and retaliation),
along with the status quo of organizational culture, trouble
may be ahead.”
- The State of Ethics & Compliance in the Workplace 2018 ECI
Source: The State of Ethics and Compliance in the Workplace 2018 (ECI)

27. Looking Ahead: Compliance as a Differentiator
“As the trend toward ever-escalating financial penalties for
compliance violations continues to rise, one business reality
is becoming clear. In the future, the most successful
businesses will not only be the best at generating revenue,
but also the best at compliance, so they can retain their
profits by avoiding mega fines and other significant
compliance sanctions like plant closures and forced product
withdrawals.”
– Patrik S. Florencio, Samuele Butera, and Erik Ramanathan, in Building an Ethical
Culture: Why It’s Vital, How It’s Done, by the SCCE
Source: Building an Ethical Culture: Why It’s Vital, How It’s Done (SCCE)

28. Six Questions:
Class of 2017-2018

29. Six Questions with an Ethics and Compliance Officer
is a series we started in September 2017 as part of
our annual Compliance Officer Day celebration.
The goal of these interviews are to shine the
spotlight on different members of the E&C
community, their personal achievements and
professional journey, and give them an outlet to
share insights with their peers.

30. To celebrate the one-year anniversary of this series and
provide some inspiration to our community, we’ve
commemorated all 18 of our interviews over the past 12
months in this book, Six Questions: Class of 2017-2018.
It features Hui Chen, Melissa Stapleton Barnes, Seth Rice,
Yan Tougas, Patricia Harned, and others who have
committed to promoting ethical behavior, building their
organization’s culture, and changing the perception of
compliance.
Download a Copy

31. We hope that the wisdom, experiences, and advice shared by
these ethics and compliance professionals around the world
will help you in your journey to building an ethical culture.
If you’re interested in joining these individuals by participating
in this series and sharing your insights, please email us today
to get started.
I’d like to participate

32. From your perspective, what does it mean to be a
modern Chief Compliance Officer or E&C
professional?
Share your thoughts in our anonymous survey.
Take the survey

33. #ComplianceOfficerDay is recognized globally every
September 26 and was founded by SAI Global in 2016.
To learn more about this day and access resources designed for
the E&C community, visit www.complianceofficerday.com today.