One of the reasons that the United States has endured is because of transparency and the rule of law. There are several key systems in place for corporations, organizations and governments to decide on the rules, publish them, enforce them and provide people with mechanisms for establishing trust in the system. Operational Risk Management (ORM) as a discipline interfaces with many of them across the globe.
Policies that are not codified in laws are different across states and global jurisdictions. The rules that people can rely on and have come to trust for hundreds of years, remain the foundation for our modern civil societies. It is when the rules are ignored, under utilized or forgotten that disruption and chaos can erupt.
A key principle in modern democracies is that the rule of law is known. Statutes, regulations, court decisions, agency deliberations, and even the minutes of Federal Reserve meetings are published and made available. The operating premise is that, if the rules are accessible, civil order and social continuity will be strengthened and the conduct of those violating the rules is more easily prosecuted. The old saying that “Ignorance of the law is no excuse” rests on an important premise—the law must be published and accessible. The Internet has made much of the content of the rule of law even more accessible. Jeffrey Ritter
The country and the jurisdiction is a key component for knowing the law. It is in the day of the Internet even more accessible. Building and achieving trust in an organization, company enterprise or governance body has several tools at their disposal to assist them in the enforcement mechanism. One of those is an independent panel or group of outsiders who are convened to discover evidence.
A Board of Directors is comprised of both individuals inside the company and outside to help guide the organization. In a private company, this "Board of Directors" make decisions on the evidence of data and make informed decisions to govern the enterprise. Some of these decisions may involve what products and services to develop or what people should be selected or released from certain duties and responsibilities.
In the public sector, there is another mechanism that can be utilized, A Grand Jury. The Fifth Amendment to the Constitution of the United States reads, "No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury..."
A grand jury is a legal body that is empowered to conduct official proceedings to investigate potential criminal conduct and to determine whether criminal charges should be brought. A grand jury may compel the production of documents and may compel the sworn testimony of witnesses to appear before it. A grand jury is separate from the courts, which do not preside over its functioning.[1]
What is one example of a notable case where a Grand Jury was used in the process of the rule of law:
What are the outcomes and benefits of effective Operational Risk Management (ORM):
ORM includes legal risk. This is why the General Counsel of private sector companies include the GC in the team that helps to effectively govern the organization. They understand the rule of law and the requirement for transparency and factors needed to achieve integrity and trust.
Now think about your organization, your jurisdiction and the process you are utilizing to ensure more effective TrustDecisions. What can you do different? What will you do to make it better? How will you provide the best use of the rules to effectively ensure the integrity and governance of the system?
Here is just one example:
Over 60 people in the U.S. and India face conspiracy and wire fraud charges in the largest crackdown against a telephone scam ever, officials said.
Callers from centers in India posed as federal agents to threaten victims with arrest, imprisonment, fines or deportation if they didn’t pay up, according to an 81-page indictment unsealed Thursday.
At least 15,000 Americans lost more than $300 million collectively during the four-year scam, according to the feds. A Texas grand jury indicted 24 people from nine U.S. states, 32 people from India and five call centers in Ahmedabad, India, earlier this month.
Policies that are not codified in laws are different across states and global jurisdictions. The rules that people can rely on and have come to trust for hundreds of years, remain the foundation for our modern civil societies. It is when the rules are ignored, under utilized or forgotten that disruption and chaos can erupt.
A key principle in modern democracies is that the rule of law is known. Statutes, regulations, court decisions, agency deliberations, and even the minutes of Federal Reserve meetings are published and made available. The operating premise is that, if the rules are accessible, civil order and social continuity will be strengthened and the conduct of those violating the rules is more easily prosecuted. The old saying that “Ignorance of the law is no excuse” rests on an important premise—the law must be published and accessible. The Internet has made much of the content of the rule of law even more accessible. Jeffrey Ritter
The country and the jurisdiction is a key component for knowing the law. It is in the day of the Internet even more accessible. Building and achieving trust in an organization, company enterprise or governance body has several tools at their disposal to assist them in the enforcement mechanism. One of those is an independent panel or group of outsiders who are convened to discover evidence.
A Board of Directors is comprised of both individuals inside the company and outside to help guide the organization. In a private company, this "Board of Directors" make decisions on the evidence of data and make informed decisions to govern the enterprise. Some of these decisions may involve what products and services to develop or what people should be selected or released from certain duties and responsibilities.
In the public sector, there is another mechanism that can be utilized, A Grand Jury. The Fifth Amendment to the Constitution of the United States reads, "No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury..."
A grand jury is a legal body that is empowered to conduct official proceedings to investigate potential criminal conduct and to determine whether criminal charges should be brought. A grand jury may compel the production of documents and may compel the sworn testimony of witnesses to appear before it. A grand jury is separate from the courts, which do not preside over its functioning.[1]
What is one example of a notable case where a Grand Jury was used in the process of the rule of law:
The second Watergate grand jury indicted seven lawyers in the White House, including former Attorney General John Mitchell and named President Nixon as a "secret, unindicted, co-conspirator." Despite evading impeachment, Nixon was still required to testify before a grand jury.An environment of trust includes a vital component of transparent and accessible rules. When there is a reason to discover the truth, we look to the governance factors of those rules. Then we look at the clear evidence, the data to determine the correct course of action in our inquiry. A Board of Directors or a Grand Jury provides guidance on whether a particular case should be referred to a legal process in a particular jurisdiction. The rules are clear. Trust is preserved.
What are the outcomes and benefits of effective Operational Risk Management (ORM):
- Reduction of operational loss.
- Lower compliance/auditing costs.
- Early detection of unlawful activities.
- Reduced exposure to future risks.
ORM includes legal risk. This is why the General Counsel of private sector companies include the GC in the team that helps to effectively govern the organization. They understand the rule of law and the requirement for transparency and factors needed to achieve integrity and trust.
Now think about your organization, your jurisdiction and the process you are utilizing to ensure more effective TrustDecisions. What can you do different? What will you do to make it better? How will you provide the best use of the rules to effectively ensure the integrity and governance of the system?
Here is just one example:
Over 60 people in the U.S. and India face conspiracy and wire fraud charges in the largest crackdown against a telephone scam ever, officials said.
Callers from centers in India posed as federal agents to threaten victims with arrest, imprisonment, fines or deportation if they didn’t pay up, according to an 81-page indictment unsealed Thursday.
At least 15,000 Americans lost more than $300 million collectively during the four-year scam, according to the feds. A Texas grand jury indicted 24 people from nine U.S. states, 32 people from India and five call centers in Ahmedabad, India, earlier this month.
No comments:
Post a Comment