Organization Steps (Chapter 3)

Question 1

Board of Directors or Board of Trustees role in Compliance

Answer 1

Responsible for the right culture - starts with the board.
Cannot be an effective program, or one at all with top support.
Visible support is crucial.
Active role vs. Passive

Question 2

First step towards implementing a compliance program?

Answer 2

Management’s communication of it’s commitment.
Board endorsement should be written, communicate support and commitment and be effectively communicated to everyone.

Question 3

What does the Caremark International Derivative Litigation make the Board responsible for?

Answer 3

Implementation of a system to gather information on the company’s efforts to prevent and detect fraud and abuse.

Question 4

Six Tips for Saving on Future Costs of Compliance