“Compliance Goals and Targets Need to be Part of Executives’ Compensation Goals and Reported in a Company’s Annual Report”
San Francisco, Calif. August 19, 2015 – International business, regulatory experts, compliance officers and technology leaders will converge at the Medical Device Summit 2015 in San Diego to debate the momentum, economic impact and viability of meeting strategic compliance goals given the need for innovation in today’s global economy. Phonize Inc. today announced its CEO Eduardo Cervantes will join a panel of experts at the Summit to discuss the value of bringing compliance to the boardroom.
Cervantes joins Mark Mitchell, SVP Corporate Development MetricStream and business head for ComplianceOnline; Rick Williams of Newport Board Group New England Practice and chairman of Point Care Technology; and Dr. Ronald Weissman of Performance Works. They will present their war stories on tying compliance targets to executive compensation. Veteran industry compliance trainer and newly appointed Phonize chief compliance officer Angela Bazigos will moderate the discussion.
The discussion will focus on both themes of using Compliance as Insurance and using Compliance as a Best Practice. “When looking at Compliance as Insurance, I would suggest that you look at the cost of non-compliance across the organization,” said Bazigos. “You can get some of these numbers from recent fines and indictments of companies of the same size. Latest high fine I saw was for $4.3 Billion. Or, from enforcement numbers given by regulations. E.g. in the case of the new regulation for European Data Protection Reform: this regulation currently proposes fines of 5% of annual revenue for non-compliance. Knowing this, you can determine how much compliance with this regulation is worth to your company.”
The other way to look at compliance is as industry best practices combined with training: compliance consists of defining a set of processes that are efficient yet safeguard patient and / or consumer processes, and being trained on and following those processes very carefully. Cervantes stated, “The chief compliance officer (CCO) needs to work with the Board to be able to educate the Board on the importance of compliance and the cost savings achieved with an effective compliance program. Achievement of compliance targets is a leading indicator for the company’s annual performance.”
Mitchell of MetricStream stated, “A great way to control, enhance and report on compliance is through compliance training. Companies need to create multi-year training plans aimed at increasing training frequency and use of tracking metrics that enable executive management to measure the level of compliance of their employees. This needs to be reported to executive management on a quarterly basis and corrective and preventive action needs to be taken when the results do not meet expectations.”
“The bottom line is that meeting compliance targets and goals helps ensure patient and consumer safety at the most efficient cost,” said Weissman. “Timelines for bringing a product to market must ensure regulatory procedures are fully met. Beyond this, the most effective compliance is proactive compliance, automated monitoring and detection of potential risks before they become violations.
Bazigos added: “Training is a fundamental part of the compliant organization. Training needs to be detailed and extensive and delivered in a way that enables the trainee to absorb the material and be able to recall it under adverse conditions. Training technologies need to immerse the trainee in the material, and becomes a simulation exercise of the real world instead of just something that you memorize. Training needs to address every part of the person’s job, otherwise anything left to chance will most likely be the thing that will break when “what you get” appears.”
About Phonize, Inc.
Phonize, Inc. is transforming enterprise compliance training into playbooks for the mobile workforce. For the first time a digital training system, Morf Learning,™ provides one to one training to millions on a smart phone or tablet. Now in pilot with more than 100 companies and partners in the financial services and life sciences industries, Morf Learning is proving to be cost-effective and engaging with its game-style courseware. With its proprietary EYEQs,™ interactive three minute mini courses and a virtual Compliance Coach,™ Morf Learning empowers professionals to train, reference policy details and get reminders and compliance notifications on the go. As a platform-as-a-service, Morf Learning offers secure centralized reporting for managing governance, regulatory and compliance training on a sustained basis. Founded in 2013 by a seasoned management team, the company is based in San Francisco.