Forensic Risk Alliance

For companies and their counsel facing the potential of disconcertingly high penalties, an Ability to Pay (ATP) analysis can be business critical. A credible assessment of the impact that a penalty would have on the company’s ongoing operations has historically helped companies in the context of bribery and corruption enforcement. More companies could stand to benefit from staying on top of new regulatory and legal areas where ATP arguments are increasingly accepted by authorities.              FRA Forensic Accounting Directors Ash Klass and Carolyn (Hodgson) McDonnell, CPA, CFE highlight five such areas in this article: https://lnkd.in/ewxgNH9E

Thank you to all those who joined us for the London VYAP Breakfast Social yesterday. We were delighted to co-host this valuable event, connecting with junior arbitration practitioners in London. Connect with FRA experts: Pratisha Ramtale, Ken Hui, CPA, CFE, Isabelle Vinter, ACA CFE, Loretta Rice, Lottie Gibbons, Natalie Rogers, Joanna Fraser and Luke Swallow. London VYAP - London Very Young Arbitration Practitioners

Settlement negotiations have produced often disconcertingly large penalties over the years in an increasing number of regulatory areas. How does ability to pay (ATP) come into play in negotiations? A multitude of factors can drive penalties to a level that may be disproportionate to a company’s balance sheet and cashflow forecast. Credible ATP arguments can significantly reduce penalties by 80% or more in some cases. Register to hear from FRA forensic accountants on our next webinar: https://lnkd.in/ekDDfAbt Ash Klass, Carolyn (Hodgson) McDonnell, CPA, CFE, Toby Duthie

Forensic Risk Alliance is delighted to be an equal sponsor to the Equal Representation for Expert Witnesses's summer cocktail and we look forward to reconnecting with old friends and making new friends. Please remember to sign up below.

FRA Partner Rik Workman has been named among Who's Who Legal 2024 – Investigations Forensic Accountants. Rik has nearly 30 years of forensic accounting experience. His assignments and expertise include anti-bribery and corruption, regulatory investigations, potential sanctions violations, global monitorships, and disgorgement and penalty calculations. Congratulations to all FRA experts featured: https://lnkd.in/er997QCb  #investigations #ForensicAccounting 

The recording for our recent webinar on the risks associated with ephemeral messaging is now available on demand. FRA experts draw on real case studies to explain how a proactive approach to off-channel communications remains core to an effective and defensible plan of action. Watch the video here: https://lnkd.in/eU-aBpif Simon Taylor Masako Asaka, CPA, CFE Alejandro Gomez Igbo #legalrisk #ephemeralmessaging #offchannelcommunications

We are thrilled to once again achieve Band 1 ranking in Chambers and Partners Litigation Support 2024 Rankings across UK-wide forensic accounting, as well as Band 2 for US-wide forensic accounting, whilst maintaining our presence in the eDiscovery category for both the US and UK.  As one commentator noted, “From top to bottom, they are always professional, always engaged and always adding value. Their service levels and responsiveness are very strong. They just get it.” The Chambers rankings reflect FRA’s continued success in client matters, investment in forensic technology and practice expertise, and strong recognition in the marketplace. A huge thank you to our clients for their continued support and to our FRA team members who provide such outstanding service!    Co-founding Partner Toby Duthie has been individually ranked once again among the leading UK-wide forensic accountants, with one commentator noting that Toby “is an effective leader and consistently demonstrates expertise in forensic accounting from an internal investigations perspective. His teams deliver top-notch work.” New to this year’s individual rankings is Dallas-based Partner Umair Nadeem. One client commented, “Umair is smart, strategic and gets to the heart of complex issues to find solutions.”    Read our full announcement here: https://lnkd.in/eKC79WT2   #forensicaccounting #eDiscovery #chambersranking 

How can global commodities firms avoid increasingly costly regulatory enforcement and fraud penalties? FRA’s Toby Duthie and Loretta Rice recently joined HFW Partner Barry Vitou to share a forensic perspective on how commodities firms should shape a proactive compliance approach, as part of HFW’s Commodities Global Compliance Forum series.  Several factors have contributed to more effective regulatory enforcement in the commodities sector in recent years. We’ve seen major settlements for bribery and corruption investigations involving Glencore ($1.1bn, 2022), Vitol ($164mn, 2020) and Gunvor ($661mn, 2024), to name a few. Vitou noted that bribery and corruption laws were being strengthened in various jurisdictions, and with every successful conclusion, enforcement agencies were sharpening their scrutiny further.  Duthie added that the quantum of fines relative to profit and the cost of compliance obligations (e.g. monitorships, self-reporting) were also reaching new heights. He highlighted the strengthening coordination between jurisdictions and its impact on oversight and enforcement on global commodities traders.   𝗖𝗢𝗠𝗠𝗢𝗡 𝗖𝗢𝗠𝗣𝗟𝗜𝗔𝗡𝗖𝗘 𝗜𝗦𝗦𝗨𝗘𝗦 📕 𝗣𝗼𝗼𝗿 𝗱𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲 Documenting your compliance processes and decision-making is critical. With the right evidence, you can demonstrate best intentions, methodical compliance enhancement and a willingness to cooperate in the context of an investigation. This may even help reduce penalties, whilst the absence of documentation may make matters worse if authorities decide to punish the failure to keep effective books and records.   ⭕ 𝗜𝗻𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝘁 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗽𝗿𝗮𝗰𝘁𝗶𝗰𝗲𝘀 Given the global nature of the commodities sector, firms must invest in ensuring that compliance standards are upheld consistently across all business operations. This includes ensuring that internal communications and training are provided across the board, and measures are in place to identify red flags. 🚩 𝗟𝗲𝗮𝘃𝗶𝗻𝗴 𝗿𝗲𝗱 𝗳𝗹𝗮𝗴𝘀 𝘂𝗻𝗮𝗱𝗱𝗿𝗲𝘀𝘀𝗲𝗱 As with poor documentation and inconsistent practices, inability to demonstrate that compliance red flags are acted on promptly can be perceived as a systemic compliance failure.  𝗥𝗜𝗦𝗞-𝗕𝗔𝗦𝗘𝗗 𝗔𝗣𝗣𝗥𝗢𝗔𝗖𝗛 𝗧𝗢 𝗜𝗡𝗗𝗨𝗦𝗧𝗥𝗬-𝗦𝗣𝗘𝗖𝗜𝗙𝗜𝗖 𝗥𝗜𝗦𝗞𝗦 Risk assessments are the foundation of a strong global compliance program. Rice spoke about the importance of commodities firms proactively recognising industry-specific risks, noting sanctions and ESG as key risks to add to bribery and corruption. Regulators want to see that risk assessments are regularly revised to ensure that they are fit for purpose, factoring in developments in these fast-evolving areas of regulation. How a company tests its controls can also be scrutinised. (Read more about our testing approach here - https://lnkd.in/eHSH3zEx.)

We co-hosted award-winning Lebanese journalist and author Dalal Mawad in Paris yesterday, where she spoke about public sector corruption in Lebanon at the centre of both the Beirut Port explosion and the country’s economic crisis. It was a pleasure to co-host clients with Aperio Intelligence at the FRA Paris Office. Yousr Khalil Arnaud Collombet Fabio Ferretti Larissa Normanton Didier Rafidiarimanda Nicola Hope

Last chance to register for tomorrow’s live webinar led by FRA experts on managing the complexities and risks of off-channel communications, particularly with ephemeral messaging apps. Balancing data retention and privacy, amidst increasing financial and reputational risks from non-compliance, requires corporations to assess employee communications and adjust policies and technology. Learn how to proactively create an effective, defensible plan of action here: https://buff.ly/3V5T338 Simon Taylor Masako Asaka, CPA, CFE Alejandro Gomez Igbo #EphemeralMessaging #OffChannelCommunications #ForensicTechnology #ForensicAccounting #FRAWebinar