Seven Elements of a Compliance Program

March 2021 Compliance Seminar

Why a Compliance Program?

Present environment
  • History of compliance and ethics in auto industry
  • Expectations
  • Benefits
  • Dealer
  • Financially
  • Reputation
  • Employees
  • Customer
  • Industry
  • Internal and External Perception of a Compliance Culture
  • End result – Culture of Compliance
  • Infrastructure of a Compliance Program
High Level Oversight & Compliance Officer Responsibilities
  • Board of Directors/CEO/Dealer Principal Oversight
  • Oversight responsibilities
  • Adequate Funding, Resources and Backing
  • Compliance Officer
  • Evaluate support ('Tone at the Top')
  • Compliance culture of dealership
  • Risk tolerance
  • Risk appetite
  • History of dealership compliance
  • Ethical behavior of management
  • Corporate Compliance Officer
  • Skillset
  • Self-assessment
  • Resources
  • Personal/professional development
  • Compliance Committee
  • Why need for check and balances?
  • Building your compliance team
  • Delegating Authority/Controls of Authority
  • Definition
  • Application
  • Clear lines of authority and accountability
  • New hire and HR vetting

Standards of Conduct/Culture of Compliance/Policies and Procedures

Code of Business Conduct, Values & Ethics
  • Definition of compliance & ethics
  • Behaviors
  • What variables drive employee decision making?
  • Compliance Policies & Procedures
  • Establishing standards for a compliance culture
  • Structural policies
  • Substantive policies
  • Policy audit
  • How to Create Policy & Procedures
  • Employee Handbook

Communication & Education

Employee Orientation and Staff Training
  • Goal of training
  • What is the expectation of the employee?
  • How to communicate expectation
  • What should be included?
  • Checklist for adult learning best practices
  • Assessment
  • Reinforce expectations
Leadership Education
  • Assess compliance knowledge and training needs
Consistent Communication
  • Compliance topics
  • Dealership compliance status
  • Communication plan
Employee Performance Review component
  • Partnership with Human Resources
  • Effective lines of communication
  • Two-way employee communication

Identification of Compliance Risks, Monitoring & Audits

Risk Assessment
  • Review Internal Compliance Reporting Venues
  • How to prioritize risks?
  • Evaluate needs vs resources?
Monitoring
  • Management by walking around.
Audits
  • Internal audit
  • GAP Analysis
  • HR compliance audits
  • Safety audits
  • Regulation Audits
  • Government Audit/Exam/Investigation
  • Responding to Deficiencies Identified by Reporting or Audit

Reporting and Investigation

Reporting
  • Investigation and Documentation
  • Human Resources to manage the investigation
  • What does the policy state?
  • History or breach or violation?
  • When is a 3rd party investigator required?
  • When do I call the attorney?
  • How to document for compliance needs

Enforcement and Discipline

Human Resources initiates consistent enforcement and discipline for violations
  • Management in partnership with Human Resources address discipline and enforcement
  • Understand the steps and expectations listed in the Progressive Discipline Policy
  • History of similar infractions
  • Consistent reinforcement ('Tone in the Middle')
  • 3D’s, Document, Document, Document

Response and Prevention

Identify Newly Identified Compliance Risks
  • Complete a risk assessment of the infraction or breach
  • Prioritize risks
  • Address mitigation options
  • Revise Policy and Procedures
  • New or re-training needs
  • Preservation of documents
  • Lessons learned
  • Monitoring expectations

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